THE DIAMOND PAGE — De Beers’ Monopros backs four juniors in

Monopros, the exploration arm of De Beers, is expanding its presence in the Northwest Territories, currently the world’s hot spot for diamond exploration. In the first major partnership it has made with public companies outside of Saskatchewan, Monopros joined forces with four VSE-listed juniors which are members of the Slave Diamond Syndicate.

Gerle Gold, Norcal Resources, Tenajon Resources and Westley Technologies signed an agreement allowing Monopros to earn a 60% interest in lands held by them. To earn the interest, Monopros must spend $7 million on exploration within three years.

In the first program, budgeted at $2 million, Gerle will carry out work under the supervision of Monopros, by the end of May, 1995. The former has a 40% stake in the syndicate, while the remaining three juniors each hold 20%. “We think it is a good deal for all parties,” said Gerle Gold President Raymond Hrkac, adding that a work program will begin shortly to test and further define 160 potential kimberlite targets identified in two areas. The first field program will include indicator mineral sampling, ground magnetic surveys and about 13,000 ft. of drilling. All aspects of the program will begin concurrently.

The land package is near Dessert and Fishback Lakes, in the vicinity of Great Slave Lake. The Fishback Lake area was staked on the basis of seismic surveys that suggest the craton underlying this area is 240 km thick and well within the diamond stability field.

The Dessert Lake area, on the southwestern shore of Great Slave Lake, was acquired on the basis of government aeromagnetic data that suggest the western margin of the Slave Craton extends farther than originally thought. Gerle has used sophisticated airborne and ground geophysical techniques to refine targets within both areas. “We also think this is an attractive place to be, logistically, because of its closeness to Yellowknife and to infrastructure,” Hrkac said. Director Donald Mustard described the land package as being “permissive for diamond discoveries.”

After Monopros earns its interest, a joint venture will be formed involving all parties. The first mine to be found would be funded by Monopros through to production. Any additional mines would be funded 60% by Monopros and 40% by the syndicate members.

De Beers Chairman Julian Thompson has stated that the Territories “appears likely to become a diamond producer in the foreseeable future.” He added his company is in contact with the principal operators.

Meanwhile, Monopros is prospecting large areas it has staked on its own in the Territories. It is no secret that De Beers would like to have at least one diamond mine in Canada’s North — not only for the revenue, but also to secure its status as one of the world’s largest diamond producers. Elsewhere in the

Northwest Territories

* Lytton Minerals (TSE) has earned a half interest in a 92,000-hectare property in the Lac de Gras area. The property, which belongs to New Dolly Varden Minerals (VSE), adjoins ground already held by Lytton, where three kimberlites have been found.

The partners plan to carry out a $500,000 exploration program over geophysical targets that were outlined last year.

Alaska

* Lamproites are the exploration target being pursued by Verdstone Gold (VSE) at the Clums Fork property, some 190 km northeast of Fairbanks in the Circle mining district.

During last year’s program, the company’s consultants located lamproite indicator minerals (G3 and G5 garnets, as well as zircons) from and near the potentially lamproitic structure known as Crazy 8.

This year’s program will further test that structure, with the first phase consisting of 15-20 drill holes. The drilling is intended to confirm the existence of lamproitic material believed to host diamonds previously found in placer operations some 50-100 metres downstream from the structure. These diamonds are reported to range from 0.10 to 0.65 carats, have sharp edges and no abrasions — all of which indicate a nearby source. Verdstone President Lawrence Reaugh said the company has an 83.5% interest in the project, which includes other potential lamproite targets. Wayne Fipke, former president of Dia Met Minerals, is a director of Verdstone. * Also active in Alaska are two VSE-listed juniors, Carissa Mining and Whiskey Creek Resources, which are exploring for diamonds in the Circle district. Last summer’s sampling program is reported to have revealed lamproite indicator minerals in all samples taken.

A program this summer will be directed by diamond expert Malcolm McCallum and will include drilling of 20 targets.

Elsewhere in the United States

* Golconda Resources (ASE) reports that diamond indicator minerals have been found in drill samples collected from a lamproitic pipe on its Idaho property. Microprobe data indicate that these indicators have similar compositions to those found in diamondiferous pipes.

Golconda says that diamonds have been found in the creeks draining its property where some 15 potential pipes have been outlined.

Overseas

* Midas Minerals (TSE) has closed a private placement of 1.9 million units to raise gross proceeds of $950,000. A portion of the proceeds will be used to fund Midas’ interest in the Casierra Diamond Syndicate, which holds an exclusive prospecting licence in Sierra Leone. Midas has a 26.7% interest in the syndicate and can increase this to 41%.