THE DIAMOND PAGE– Placer Dome to buy into Crater of Diamonds

An agreement with Texas Star Resources (TSE) sets the stage for Placer Dome (TSE) to participate in a diamond project in Arkansas. The latter’s U.S. subsidiary will enter a joint venture with Texas Star subsidiary Continental Diamonds.

The Placer Dome-Continental partnership constitutes one of four participants that have been granted a 25% interest to explore jointly the Crater of Diamonds state park. State agencies have approved a second phase of testing and federal approval is now awaited.

Should the joint venture be awarded mining rights, Placer Dome could earn a 51% interest by reimbursing Texas Star for past exploration and funding future expenditures through to a final feasibility study. But the major will have no obligations until such rights are awarded.

“We are not especially interested in diamonds and view this as an isolated venture,” said Placer Dome spokesman Hugh Leggatt. “We decided to participate because it is an opportunity with a lot of upside.”

Northwest Territories

– The hot spot for world diamond exploration remains the Territories, where two bulk-sampling programs are in full swing. At the recent convention of the Prospectors and Developers Association of Canada in Toronto, partners BHP Minerals Canada and Dia Met Minerals (TSE) revealed some details about their Exeter Lake kimberlites near Lac de Gras.

It was noted, for example, that these geologically young (52 million years) kimberlites have undergone relatively minor erosion. Crater facies epiclastic sediments are preserved and consist of black, serpentinous mudstones (locally with delicate, varved bedding), grading into siltstones and sandstones containing fine-grained quartz. Crater depths of up to 200 metres have been recorded.

The diatreme facies comprise tuffisitic, tuffisitic “macrocrystic” and tuffisitic kimberlite breccias. Group 1 hypabyssal kimberlites also occur in the BHP-Dia Met claim block.

– Meanwhile, Ashton Mining of Canada (TSE) has started a core drilling program on the Cross property, in the Humpy Lake region east of Lac de Gras. Joint-venture partner Tenajon Resources (VSE) says several areas were targeted for drilling based on data obtained last year.

Initially, core samples will be analyzed in Canada for confirmation of kimberlite. If kimberlite is found, the material will be shipped to Australia where it will be analyzed for diamond content.

– Barexor Minerals (ME) is carrying out a geophysical survey over the best geochemical targets on the southern portion of its Aylmer Lake property. Drill testing of five targets elsewhere on the property failed to locate any kimberlites, but exploration is continuing.

– Pure Gold Resources (TSE) can earn a 40% interest in Noront Resources’ (VSE) Izok Lake property in the Lac de Gras area. Under the deal, Noront will receive 75,000 shares of Pure Gold upon signing and an additional 75,000 a year later. The agreement also calls for expenditures of $750,000 by Feb. 12, 1996; these will be under the direction of Ashton Mining of Canada. Ontario and Quebec

– International Homestead Resources (VSE) has optioned the Bucke kimberlite pipe in Bucke Twp., 55 miles south of Kirkland Lake, Ont. The Bucke pipe, which is 500 metres northwest of the pipe recently discovered by Vera Cruz Minerals (VSE), was previously investigated by Monopros and Lac Minerals (TSE).

A 25-tonne bulk sample collected in 1992-93 yielded four macrodiamonds and one micro. However, exploration thus far has tested only a small portion of the pipe and Homestake believes more work is merited.

The company plans to carry out a closely spaced magnetic survey, followed by diamond drilling and bulk sampling.

– Partners Exploration Diabior (ME) and William Resources (ME) report that an 84-kg core sample from a kimberlite on their Ailly Twp., Que., property has yielded a microdiamond. The clear-white stone measures 0.17 by 0.14 by 0.17 millimeters. (Diabior, the operator, is earning a half interest from William.) In other news, William has intersected two kimberlite dykes on its Lac Olga property, 50 km northeast of Matagami, Que. At least five other magnetic anomalies, thought to represent kimberlites, lie within a 3-km radius of the two dykes.

Overseas

– De Beers Consolidated Mines and De Beers Centenary AG have posted combined earnings of US$595 million for 1993, an increase of 21% over the same period in 1992. Combined expenditures for prospecting and research amounted to $90 million.

According to company directors, retail diamond jewelry sales seem to have resumed a rising trend in 1993.

– Exploration has resumed on United Reef’s (TSE) Bamingui-Bangoran property in the Central African Republic. The program, budgeted at $500,000, is aimed at expanding the 81,000-carat resource outlined in 1993. Sampling trenches are being excavated, with results expected in April.

Meanwhile, construction of a pilot plant is nearing completion. Test mining is expected to begin in mid-April and 15,000 carats should be recovered by year-end. The capital cost is budgeted at $750,000.

– By early April, Hol-Lac Gold Mines (CDN) expects to have signed the final option agreements on a 45-sq.-km property in Ukraine. The property, which covers several kimberlite occurrences, is currently owned by Geoprognoz, a state-owned mining company.

– TNK Resources (CDN) has located an additional four kimberlite pipes on its Gope group of licences in Botswana. This increases the number of known kimberlites to seven, two of which are known to be diamondiferous. Geophysical data from the property continues to be processed.