SouthernEra tests MacKay Lake for Snap Lake extension

Toronto-based SouthernEra Resources (SUF-T) will drill a second hole on its MacKay Lake property in order to test for extensions of the Snap Lake kimberlite dyke complex.

Situated in the Northwest Territories, the Snap Lake underground diamond project was the focus of the $305-million takeover of Winspear Diamonds by De Beers Consolidated Mines (DBRSY-Q). Winspear was the operator and 67.76%-owner of the project, which hosts an indicated and inferred resource of 45.6 million tonnes grading 1.9 carats per tonne, equivalent to 86.4 million carats.

SouthernEra plans to sink its first hole to a depth of 1,200 metres to test for the downdip extension of the NW dyke. At last report, in early October, the hole had progressed 860 metres and was expected to reach its targeted depth by the middle of the month. It is averaging 30 metres per day.

The second hole will be collared 1 km from the first hole.

During the summer, Winspear completed a dozen stepout and infill holes on the NW dyke as part of a “value recognition program” in response to De Beers’ takeover bid.

The NW dyke was extended 3.2 km in a north-south direction and 3.1 km in an east-west direction, and the depth of the dyke is approaching 1,000 metres to the north and to the east, where the eastern margin of the structure appears to have narrowed to about 1.3 metres.

SouthernEra says one of Winspear’s most northeasterly holes is within 1 km of its MacKay Lake property. MacKay Lake is held 70% by SouthernEra and 30% by Kalahari Resources (kla-v).

At the neighbouring Back Lake project, owned 60.4% by SouthernEra, 26.8% by Kalahari and 12.78% by Island-Arc Resources (IAR-V), additional till sampling was carried out in an effort to define the primary source of the Margaret Lake indicator mineral train. The anomalous train is 300 metres wide and extends over a distance of 7 km. SouthernEra expects that the 149 till samples recently collected will be processed by year-end.

BHP Diamonds, a subsidiary of Broken Hill Proprietary (BHP-N), recently completed an airborne gravity survey using its Falcon gravity system over portions of the WI and all of the DHK claim blocks in the Lac de Gras area. The claim blocks are contiguous with the southern boundary of the Buffer zone claims of the Ekati mine.

BHP has developed a proprietary, gravity-based technology known as Falcon, which detects variations in the density of surface and sub-surface rocks. Such variations may be indicative of kimberlite bodies.

Positive airborne results will be followed-up with drill testing. BHP can earn an initial 35% interest in any new discovery it makes. The remaining interest is shared among DHK Diamonds, with 41.25%, SouthernEra, with 13.75%, and Archon Minerals (ACS-V), with 10%. (DHK is owned equally by Dentonia Resources [DTA-V], Horseshoe Gold Mining [HSX-V] and Kettle River Resources [KRR-T].)

SouthernEra has also carried out additional till sampling on the Yamba Lake project, which adjoins the northern boundary of Ekati’s Buffer zone claims and where, to date, eight kimberlite bodies have been discovered. The results will be reviewed in conjunction with airborne geophysical data in preparation for spring drilling.

SouthernEra can earn a 51% stake in the Yamba Lake project, with the remaining interest held 19.5% by Tanqueray Resources (TQY-V), 19.5% by Mill City International (MIY-V), and 10% by Techsite Strategies (TSS-V).