Vaaldiam eyes fissures

Vaaldiam Resources (VRL-V) is set to acquire the Zuurverdiend diamond property, in South Africa’s Northern Province, from De Beers Consolidated Mines (DBRSY-Q).

Vaaldiam is already exploring four diamond properties in the country, including Makoppa, which adjoins Zurrverdiend’s western boundary. Makoppa and two others in that group are owned by SouthernEra Resources (SUF-T), which has granted Vaaldiam the right to earn 70% interests in all three by spending $2.6 million over the next two years. Just under $1.4 million must be spent at Makoppa, and SouthernEra can buy back 25% interests in any one of the three, within 90 days of the completion of a feasibility study, by paying Vaaldiam an amount equivalent to twice what it spent exploring the property chosen.

Under the De Beers deal, Vaaldiam must spend $175,000 by mid-2001 in order to earn a 100% interest, with the major then re-acquiring a 30% stake. De Beers can increase its interest to 55% within 90 days of Vaaldiam’s completion of a feasibility study by paying the company an amount equivalent to 250% of its exploration costs. De Beers also has a right of first refusal to buy any diamonds produced.

SouthernEra, in turn, can acquire 30% of Vaaldiam’s residual interest in Zuurverdiend. To maintain this right, SouthernEra would have to pay a pro rata share of the exploration and development costs.

In 1997, De Beers carried out regional sampling and follow-up drilling at Zuurverdiend, resulting in the outlining of 300 metres of a kimberlite dyke, dubbed X-81. The fissure, measuring between 0.15 and 8 metres in width, was later found to extend on to the Makoppa property for 1.8 km.

Results proved encouraging, with De Beers recovering 36 microdiamonds from kimberlite drill-cuttings alone and 65 micros from mixed cuttings of kimberlite and granitic country rock. On Makoppa, two of 16 holes that pierced the fissure returned four macrodiamonds weighing a total 0.04 carat.

In all, the X-81 fissure is believed to extend for 4.5 km across the two properties, as suggested by the exposed fissure and related indicator minerals. Vaaldiam notes that petrographical, mineral chemistry and microdiamond analyses all indicate that the fissure is highly prospective.

Exploration crews also outlined a 600-metre garnet-spinel mineral train 2 km to the south, along the southern boundary of Zuurverdiend. Where the boundary meets Makoppa, SouthernEra cut kimberlite in three short holes over widths of 4-9 metres. Also, soils and gravels overlying the projected trace of the fissure system, which parallels X-81, returned one 0.22-carat stone.

Vaaldiam plans to drill the X-81 kimberlite in order to obtain a composite sample for analysis by De Beers.