Winter program enhances diamond project

Winter drilling at the N.W.T. Diamonds project near Lac de Gras has substantially increased the grade of the Misery pipe and enhanced or confirmed the previously reported grades of the Koala, Panda and Fox pipes.

BHP Diamonds (a subsidiary of BHP Minerals) and joint-venture partner Dia Met Minerals (TSE) carried out a program consisting of: 14,750 metres of reverse-circulation drilling on 10 separate pipes; 2,870 metres of small-core delineation drilling on three pipes; 410 metres of larger-size core drilling; and a 900-tonne surface sample on an exposed pipe identified as Mark.

Drilling of the high-grade Misery pipe recovered 3,885 carats from 905 tonnes for an average grade of 4.29 carats per tonne. When combined with the previously reported 437 carats from 132 tonnes of sample, the preliminary grade is calculated as being 4.17 carats per tonne, representing a 26% increase in grade.

While commercial evaluation of the diamonds recovered in the winter drilling is scheduled for July, evaluation of previously recovered diamonds from the Misery pipe averaged US$43 per carat for an overall value of about US$142 per tonne.

Further drilling on the Panda pipe yielded 275 carats from 217 tonnes for a grade of 1.27 carats per tonne. A previous grade of 0.93 carats per tonne was calculated for Panda, based on 3,143 tonnes of bulk sample and drill material. Those diamonds were evaluated at US$132 per carat, for an estimated value of US$123 per tonne.

A total of 505 carats was recovered from 205 tonnes of drill samples from the Koala pipe, for an average grade of 2.46 carats per tonne. A previous grade of 0.75 carats per tonne was based on 1,193 tonnes of sample material. The evaluation of those diamonds averaged US$110 per carat for an overall value of US$83 per tonne.

An additional 251 tonnes of drill material were recovered from the Fox pipe, yielding 65 carats, for a grade of 0.26 carats per tonne. The results confirm the previous grade of 0.27 carats per tonne based on 7,766 tonnes. The diamonds are valued at an average of US$126, giving an overall value of US$34 per tonne.

Results for the Leslie pipe are pending, as processing and diamond recovery operations continue on 714 tonnes of drill sample recovered. Leslie is the fifth pipe planned for production.

One of five new pipes tested is the Pigeon. A total of 60 carats were recovered from 154 tonnes for a grade of 0.39 carats per tonne. Additional processing of drill samples includes 90 tonnes from the Cub pipe, 136 tonnes from the Grizzly, 63 tonnes from Arnie and 80 tonnes from Mark, which is in addition to the 900 tonnes extracted through a surface trench.

To date, 44 kimberlite pipes are identified on the N.W.T. Diamonds property, of which 39 are confirmed to be diamond-bearing. BHP holds a 51% interest in the joint venture, with Dia Met Minerals holding a 29% interest and private individuals holding the balance.

The partners report the federal permitting process for the project remains on schedule, and the companies expect to submit an environmental impact statement sometime in July. It is anticipated that BHP will proceed with a full feasibility study.