Second rig moved to DHK ground

Following the release of further encouraging results from the Tli Kwi Cho kimberlite pipe in the Northwest Territories, partners DHK Resources and Kennecott Canada have moved a large-diameter (6-inch) core rig to the site to complete delineation drilling and bulk-sampling.

In a recent update on the project, the partners said the fourth hole drilled on the Tli Kwi Cho twin anomaly returned 20 macrodiamonds and 79 microdiamonds from a 70-kg sample. The joint venture also revised its figures for the first three holes, saying the 86.4 kg of material had yielded 21 macros and 62 micros — an improvement over a previous count that included only “clear and colorless” diamonds (T.N.M., April 26/93).

Lakefield Research also recovered one macrodiamond from 149.5 kg of material taken from the nearby DO-29 pipe.

“The latest results indicate that the DHK discovery must be taken seriously with regard to economic potential,” said Pacific International analysts John Kaiser and Andrew Muir.

Two key pieces of information that further testing should reveal are the size of the pipe and the percentage of gem-quality diamonds. Because Lac de Gras is so remote, the diamondiferous pipes found in the area will need to be above average in both those categories to be considered economical. Historically, commercial pipe sizes have ranged from one to 137 acres. Gem-quality stones account for about 15% of world diamond production. To outline the pipe walls, Kennecott will drill angled holes from the lake ice at the centre of the known kimberlite and, later, complete delineation drilling, said DHK’s George Stewart. The smaller rig has been moved northwest to the DHK block to complete reconnaissance work.

According to informed sources, Kennecott is considering setting up a pilot plant in Yellowknife to process bulk samples.

Trading has been quiet lately as investors await results of bulk-testing on at least two diamondiferous pipes held by the BHP-Dia Met joint venture. The announcement, expected in late May, will represent “a critical milestone” in the diamond play, says John Hainey of Canaccord Capital.