THE DIAMOND PAGE — More drills are turning in Lac de Gras

Drilling is finally under way in the Humpy Lake region east of Lac de Gras, N.W.T.

On Aug. 25, Pure Gold Resources (VSE) activated rigs on the Humpy No. 2 claim block, where the company will drill-test several priority targets before winter freeze-up.

Exploration and evaluation are being supervised and funded by Ashton Mining of Australia, the fourth international major to join the hunt for potentially economic kimberlite pipes in Canada’s North. In addition to Pure Gold, three other VSE-listed juniors hold interests in these claims: Atna Resources, Island-Arc Resources and Winslow Gold. The latter has started a drill program on its Humpy 2 block and hopes to drill-test targets on its Humpy 1 property before freeze-up.

Northwest Territories

* Meanwhile, a previously announced joint venture between Pure Gold and International Platinum (TSE) on a 7,000-sq.-km land package near Lac de Gras has been cancelled.

* Close to Humpy Lake, Winspear Resources (VSE) is starting to drill the Snare Lake property, a joint venture with International Vestor Resources (VSE). Winspear also has interests in a nearby property being drilled by SouthernEra Resources (TSE). In addition, Winspear plans to drill-test five targets in the Courageous Lake area, a project where Consolidated Newgate Resources (VSE) and Canso Explorations (VSE) can each acquire up to 30% interests.

* Midwest Drilling has been contracted to carry out 1,050 to 1,200 metres of diamond core drilling at Yamba Lake, east of Lac de Gras. This project involves Mill City Gold Mining (ASE), Tanqueray Resources (ASE) and Fibre-Klad Industries (VSE). Midwest will test three to five anomalies on the southern part of the block. They were identified by a geophysical survey and confirmed by geochemical sampling earlier this summer.

* Consolidated Abitibi Resources (ME) and Thunderwood Resources (TSE) have each raised $300,000 by issuing flow-through shares. The financing will enable them to explore further the jointly owned McConnell Diamond project, northwest of Yellowknife.

Work will include till-sampling, geophysical surveys and diamond drilling of targets in the Basler, Pollock and La Martre Lake areas.

British Columbia

Consolidated Ramrod Gold (TSE) is among the busiest of juniors, with more than 12 mineral projects under way in various parts of North America. Recently, it took on a diamond project near Elkford, a coal mining town in the southeast. Exploration of its ICE diamond prospect has identified anomalies which, Ramrod believes, indicate potential kimberlite occurrences on a 21-km-long, north-trending belt.

Saskatchewan

A $750,000 program is about to begin on the Willow project in the southwest. The joint venture involves three Vancouver-listed juniors: Robert Friedland’s Diamond Fields Resources, Robert Hunter’s Lumina Investment and Allen Achilles’ Super Twins Resources. Earl Dodson and Diamond Fields geologist Rod Baker will supervise.

The partners say the number and size of the geophysical anomalies being explored (in relation to mineral dispersion anomalies) suggest the presence of sedimentary kimberlite facies analogous to the Arkhangelsk province in northwestern Russia.

The exploration “area of mutual interest” covers 46,620 sq. km. It stretches 420 km west (from Weyburn to the Alberta border) and 112 km north (from the Canada-U.S. border to the 50th parallel). “Extensive drilling” will occur this fall.

United States

* Redaurum Red Lake Mines (TSE) has entered an agreement to acquire a quarter of the issued capital of Colorado Diamond Corporation. The latter holds the mineral rights to the Kelsy Lake diamond property, next to the Colorado-Wyoming state line. Of the eight kimberlite pipes discovered there, two have produced gem-quality diamonds. A bulk sample of 1,600 tonnes from the two pipes yielded 58.3 carats of diamond, ranging in size from 0.4 to 2.23 carats.

Redaurum paid $80,000 upon signing and has 90 days to complete a due diligence study, at which time an additional 150,000 Redaurum shares will be issued to complete the transaction.

The next phase of development calls for the on-site recovery plant to be expanded for pilot-scale operations next year.

Overseas

SouthernEra Resources says modifications to the diamond recovery plant at its 20%-owned

Leicester diamond property have been completed. The plant is 40 km north of Kimberley, South Africa.

Leicester Diamond Mines (VSE) can now process its 10,000-tonne Sample B, with hopes for better results than received from Sample A.

The modifications were necessary because of repeated breakdowns and “resulting uncertainty” in the recoveries from Sample A. The 9,013 tonnes of kimberlite from this sample yielded only 2.3 carats per 100 tonnes. On a more positive note, more than 90% of the stones recovered were classed as gem quality, with the larger ones averaging 0.83 carats and accounting for 78% of the total value.