THE DIAMOND PAGE — Kennecott’s underground program dispels

Some weeks ago, rumors were flying that Kennecott was about to pull out of the diamond exploration effort in the Northwest Territories. Those rumors, which originated somewhere in the U.S., were laid to rest this week when the major announced it was proceeding with a 5,000-tonne bulk sample from its main target, the Tli Kwi Cho (DO-27) pipe on the WO claims near Lac de Gras.

Kennecott and junior partners Dentonia Resources (VSE), Kettle River Resources (VSE) and Horseshoe Gold Mining (ASE) appear to have other promising targets which will be drill-tested in ongoing work programs. Northwest Territories

* Meanwhile, Ashton Mining of Canada has picked up more properties in the Lac de Gras camp. The latest of four international majors active in the region, Ashton secured the right to earn a half interest in 68,000 hectares, on a pro rata basis, from several juniors which hold interests in the properties. If Ashton exercises its right, minority interests would be held by Pure Gold Resources (VSE), Tenajon Resources (VSE), International Northair Mines (VSE) and Camnor Resources (VSE).

* Barexor Minerals (ME) has completed two private placements each worth $150,000. Each consists of 600,000 units, with a unit consisting of one share and one warrant allowing the holder to buy an additional Barexor share at 33 centsuntil March 1, 1995. The funds will be used to explore and develop further the Aylmer Lake project.

* Partners Westwin Ventures (VSE), Melinga Resources (VSE) and Leeward Capital (VSE) report that a reconnaissance program has begun on their properties in the Dubawnt Lake region. Included are geological mapping, geochemical sampling and ground magnetic surveys.

Five exposed kimberlites are present on the properties, and another seven pipes are thought to be present in the region. In addition, several aeromagnetic anomalies, thought to represent kimberlites, have been outlined. Alberta

* It was only a matter of time before an oil and gas company showed an interest in Alberta’s diamond exploration play. Calgary-based Ridgeway Petroleum (ASE) has announced plans for a 50-hole program to locate and track diamond indicator minerals on its 92,000-hectare permits near the Peace River. The company has interests in more than 3.2 million hectares’ worth of permits in the province but plans to focus its exploration effort on an area adjoining ground explored by Monopros.

Quebec

* Societe Miniere Ecudor (ME) has completed a geological survey and collected more than two tonnes of rock (20 samples) from its Lac Castigon property, 200 km northwest of Schefferville.

The survey has outlined several diatreme breccias, many of which are encircled by tuff rings and pyroclastic units. The company believes these units indicate a kimberlite-bearing system.

The samples are being analysed for diamonds and indicator minerals. * Explorations Minieres du Nord (ME) reports that geological, geochemical and magnetic surveys are under way on five claim blocks in Le Tac, L’Esperance and Margy twps. These properties, held jointly with Wiscan Resources (TSE), cover 17 circular magnetic anomalies thought to represent kimberlites. Follow-up drilling is planned for the fall.

Minieres du Nord also controls an additional 5,100 hectares in Le Tac Twp. To finance exploration, Minieres du Nord has completed a $200,000 private placement and a $408,900 flow-through offering with Caratax Diamond Exploration Partnership 1993.

Overseas

Mink Minerals (VSE) can acquire a 65% interest in Syndicat Diamant Mali, a diamond exploration company owned jointly by the governments of Mali and France.

The syndicate’s major asset is a concession in Mali’s Kenieba Valley, where the French government agency Bureau de Recherches Geologiques et Minieres has spent about US$8 million.

This work resulted in the discovery of 21 kimberlite pipes, eight of which are known to contain some diamonds. The concession also contains alluvial diamond deposits. Mink must spend US$6.1 million over three years to earn a 51% interest in the syndicate, plus a further $5 million within three years to earn a further 14%. All costs thereafter will be shared by all parties on a pro-rata basis. The concession covers 1.6 million hectares. * Geological consultant A.C.A Howe has recommended a pilot plant production test at United Reef Petroleums’ (TSE) Bamingui-Bangoran property in the Central African Republic (CAR).

The recommendation is based on a 4-month-long exploration program during which 121 diamonds, weighing a total of 45.64 carats, were recovered from about 400 tonnes of gravel. The diamonds range in size from 0.07 to 2.61 carats and 88% were gem quality.

The diamond-bearing gravels are covered by about three metres of sandy overburden and directly overlie bedrock; they average 45 cm in thickness. The pilot program, expected to last seven months, will begin in January, 1994. Geologically inferred gravel resources are estimated at 297,015 cubic metres grading 0.27 carats per cubic metre.

* In October, Ateba Mines (TSE) plans to begin exploring its 250-sq.-km concession in the CAR. The property is believed to contain diamondiferous gravels similar to those found on the nearby United Reef property. The Magnet Group of Australia can earn a 51% interest in a 100-sq.-km portion of the concession by spending US$1 million on exploration.

* In Zimbabwe, three new targets have been identified on Redaurum Red Lake Mines’ (TSE) 50%-owned Chivu-Chikomba No. 730 property.

Analysis of soil samples collected over a 4,000-hectare portion yielded a micro-diamond and anomalous concentrations of picro-ilmenite and chrome spinel (both of which are kimberlite indicator minerals). Target areas conform closely to an aeromagnetic anomaly. Exploration is continuing.