THE DIAMOND PAGE — United Reef expands holdings in Central

Exploration sampling on United Reef’s (TSE) Bamingui River property in the Central African Republic has significantly expanded the resource of diamond-bearing gravels that were outlined in 1993.

Since September of this year, 312 sample sites have been excavated along a 4.6-km length of the Bamingui River. The area of terraced gravel deposits along the right bank has been expanded, to a width of 700 metres from 200 metres outlined last year. Sampling has also resulted in the discovery of a “mirror image” of terraced gravel deposits along the left bank, with a width of roughly 300 metres.

The company’s pilot plant is being used to process the exploration samples. To date, the average recovered grade of the samples is 0.29 carats per bank cubic metre (bcm), and individual results range from a low of 0.08 carats per bcm to a high of 0.79 carats per bcm.

United Reef has so far recovered 393 diamonds, with a combined weight of 165.2 carats. The average size of the diamonds is 0.42 carats, and the company estimates that more than 85% of the stones are of gem quality. The results will be used to recalculate the resource, with a new figure expected by year-end.

The sampling is also serving to test the elevated terrace deposits that mark the edges of the present-day Bamingui River drainage system. Low-lying alluvial flats occupy the floor of the present-day drainage and extend over a distance of almost 8 km within the property, averaging about 300 metres in width. Historically, these alluvial flats have been the target of artisanal miners. The flats will be thoroughly sampled during the upcoming dry season. Sampling has begun along the Bangoran River, 8 km north of the Bamingui, which is the first of five areas targeted for exploration within the company’s 507-sq.-km property.

Elsewhere Overseas

* Serengeti Diamonds (VSE) reports that field examination of four of 20 magnetic anomalies has outlined two new kimberlite pipes on the Dodoma Licence in Tanzania. (The two pipes were confirmed by test-pitting.) The magnetic surveys indicate that each of the pipes is roughly 16 hectares in size.

The company will now sample several new pits, by probe analysis, to determine if the pipes are diamondiferous.

* Prospecting work is continuing on Canadian Overseas Exploration’s (VSE) sea concession at the mouth of the Olifants River in South Africa. Divers have recovered 34 diamonds weighing 47.8 carats over a 5-day period. At the same time, the company is bringing into operation a joint venture in the deeper waters of the concession.

* Gold Standard (NASDAQ) reports that its 68%-owned subsidiary, Big Pony Gold (NASDAQ), has entered into a joint-venture agreement with Ashton Mining of Australia and Santa Fe Pacific Gold (NYSE) to explore for diamonds and gold in Uruguay. Big Pony’s proportionate share of costs and proceeds is 16% for diamonds and 24% for gold. Preliminary reconnaissance programs are under way. The Northwest Territories

Ashton Mining (TSE) can earn a 51% interest in the Hidden Lake property from 75-25 partners Winslow Gold (VSE) and Leeward Capital (VSE). The agreement calls for Ashton to conduct airborne and ground geophysical surveys, as well as heavy mineral sampling, in the first year. Second-year work calls for additional exploration, including drilling and a 2-tonne bulk sample from the first kimberlite identified.

Saskatchewan

* Golden Marlin Resources (VSE) has acquired a diamond prospect in the Egg Lake area of northern Saskatchewan. The claim contains circular magnetic features, and a ground magnetic program is recommended, including further surface examination for potential outcrops.

Quebec

* Calais Resources (VSE) and joint-venture partner Klondike Reef Mines are negotiating to acquire a diamond property in the Crystal Valley district near Montreal, Que. Five targets have been identified for drilling based on airborne geophysical, as well as diamond indicator, work.

United States

A third hole drilled on Golconda Resources’ (ASE) Idaho diamond prospect has intersected 450 ft. of lamproitic tuff.

Two previous holes, drilled in May, also intersected lamproitic tuff. The company believes the material may be part of a lamproitic pipe. Drillers are evaluating the possible source of the tuffaceous material, with four areas targeted for testing.

Supervising the program is BHP Minerals International Exploration, which has the right, until Dec. 31, to form a joint venture with Golconda and earn a 51% interest.