DIAMOND NEWS ROUNDUP — Diamond Fields subsidiary sells parcel of African diamonds

These days, Diamond Fields Resources (TSE) is best known for its 75%-owned Voisey Bay nickel-copper-cobalt discovery in Labrador. But the company was formed with the hope of becoming a diamond producer, and that aspiration is now being fulfilled at the company’s mining operations in Africa.

Diamond Fields’ wholly owned subsidiary and diamond-marketing arm, Namibian Diamond Sales, has completed the sale at tender in Antwerp of 6,636 carats of diamonds for US$1.1 million. The diamonds were produced from ongoing operations in South Africa and Namibia.

In South Africa, Diamond Fields has remodelled and upgraded (both above and below ground) the Loxton Dal mine. This involved adding a heavy media separation plant to improve diamond production and recovery. The company also owns the Frank Smith diamond mine in the same region.

In Namibia, the company’s marine geological experts report a resource of more than 1 million carats with an average price of US$165 per carat. This material was delineated by partner BHP Minerals, which carried out bulk sampling in waters of 38-80 metres on certain parts of the concession. Further evaluation is continuing.

Elsewhere in Africa

* Two companies with diamond projects in Africa have shelved plans to merge. Last month, Patrician Gold Mines (ASE) and Serengeti Diamonds (VSE) signed an agreement whereby the former was to have provided US$850,000 to fund the latter’s purchase of the remaining 80% interest in certain diamond properties in Tanzania. Patrician was unable to fulfil this commitment within the required time period and, as a result, the merger will not take place.

Northwest Territories

* Partners Mountain Province Mining (VSE) and Camphor Ventures (VSE) are continuing delineation drilling on the 5034 kimberlite at their AK property, north of Lac de Gras.

Mountain Province holds 50% of the project, Glenmore Highlands (ASE) has 40% and Camphor owns the remaining 10%. Glenmore is 47%-owned by Lytton Minerals (TSE).

Core is being processed from a vertical delineation hole on land, about 30 metres northeast of the edge of lake. The hole was drilled to a depth of 383 metres and intersected 284 metres of kimberlite.

Initial results confirm that the hole is diamondiferous and contains both micro and macrodiamonds. Detailed results are expected shortly, “once a sufficient quantity of core has been processed to enable a meaningful and representative analysis.”

* ASE-listed Ming Financial can earn interests in certain properties held by Tyler Resources (TSE) and Jerez Investment (ASE) in the Lac de Gras region by spending $4 million of exploration over two years.

Ming can earn half of the interests held by Tyler and Jerez in various properties, including: Crystal, Deb, Gem and Drybones Bay (all of which are wholly owned by Tyler); Carat (66.6% Tyler and 33.3% Jerez); and North Humpy (50% Tyler and 50% Jerez).

Canamera Geological will operate the exploration programs, which are to begin immediately.

* A second-phase program of till sampling has confirmed five distinct diamond kimberlite mineral trains on the Royce group of claims. The property is wholly owned by GMD Resource (VSE).

Results indicated anomalous concentrations of pyropes, chrome diopsides and picro-ilmenites, with numerous samples being coarse and angular.

The junior says the encouraging results reported by its consultant confirm the results of the first-phase program.

The claim group is 60 miles northwest of Yellowknife, about 30 miles from an all-weather road, and is traversed by a power line.

Analysis and evaluation of the anomalous targets defined by close-spaced airborne geophysical surveys are expected to be available soon. A third phase of sampling is under way, and diamond drilling is planned once these results are evaluated.

South America

* Alberta-listed Global Industries is acquiring a half interest in a gold and diamond placer in Guyana held by Exall Resources (TSE).

To do so, the company must invest US$500,000 directly in the operation. The investment will be used to construct a plant and supply initial working capital.

Exall has already spent US$1.3 million on the property, including construction of a dredge, to be used in a pilot operation to mine the river. The dredge was built in Georgetown this past winter, then disassembled and moved down river to the concession.

The pilot operation is expected to start up in August, and revenue will be split on a 50-50 basis until Global has recouped its investment. At that point, revenue will be shared 25-75 in favor of Exall, until it recoups its investment. Thereafter, revenue distribution will revert to a 50-50 basis.

The companies say “conservative estimates” indicate the presence of 696,000 carats of diamonds and 22,500 oz. gold, the total value of which is about US$12 million. The volume of minable gravel is believed sufficient to support mining for 15 years.

To concentrate on the Guyana project, Global will defer efforts to mine the Yecarato River in Mexico’s Sinaloa state.