A dispute has arisen between
The quarrel centres on Aber’s participation in this year’s proposed $12-million exploration program in the Snap Lake area. Winspear says Aber elected not to participate in the 1999 program and budget and that, therefore, its 32.24% interest in the project would be reduced. Winspear currently owns a 67.76% stake.
Aber disputes Winspear’s claim, stating that it verbally informed Winspear on numerous occasions of its intention to pay its share of the budget and participate in the program. Aber says Winspear’s position appears to be based on the assertion that notice of Aber’s intention to participate in the program was not given in writing, and that written notice is required under the terms of the joint venture.
Aber is preparing to begin litigation to protect its 32.24% ownership interest.
Three drill rigs are currently operating in the Snap Lake area of the Camsell Lake diamond project, 220 km northeast of Yellowknife.
Winspear is attempting to identify a minimum of 3.5-5 million tonnes of kimberlite resource for a feasibility study, plus 3-5 million tonnes of possible tonnage.
The drilling is focused on a gently dipping kimberlite dyke that subcrops on a peninsula jutting into the northwestern corner of Snap Lake. The NW Snap Lake dyke has yielded the highest diamond values ever reported from the territories. Based on a 226.72-carat parcel of stones recovered last year from two 100-tonne surface samples, the diamonds were determined to be worth an average of US$301 per carat. The implied value is US$343 per tonne, based on a preliminary grade of 1.14 carats per tonne.
The 226.72-carat parcel includes 25 stones weighing more than 1 carat, with the three largest stones –10.82, 8.42 and 6.04 carats — accounting for 75% of the value.
A scoping study by MRDI Canada, a division of H.A. Simons, estimates that the portion of the NW dyke underlying the peninsula contains a resource of 1.3 million tonnes, of which 667,000 tonnes are minable by open-pit methods.
The peninsula covers an area measuring 850 metres along strike and between 200 and 400 metres wide.
The NW dyke, identified over a strike length of 1,350 metres, was encountered in limited, widely spaced drilling as far as 2,200 metres east of its exposure on the peninsula. The dyke averages a thickness of 2.4 metres.
At last report, Winspear had drilled 13 holes in this year’s winter-spring program. Three holes drilled to define the upper dip limits of the NW dyke on the north shore encountered 0.2- and 0.8-metre-thick intervals of kimberlite.
In addition, three holes on the north shore and seven holes at Snap Lake encountered kimberlite intersections ranging from 1.3 to 4.8 metres, for an average thickness of 2.7 metres. These holes have extended to 2,000 metres the north-south strike length.
Winspear will collect a 6,000-tonne surface bulk sample to verify diamond values and grade. Two pits have been delineated on the NW dyke, and blasting and mucking are in progress. The kimberlite is being stockpiled, and shipping to the processing plant has commenced.
On Winspear’s wholly owned Hilltop property, a 2,500-metre drill program has begun testing a minimum of 13 targets. The north boundary of Hilltop is contiguous with the southern boundary of Camsell Lake.
During the summer of 1998, till sampling at Hilltop revealed one microdiamond and several concentrations of indicator minerals, some of which were associated with kimberlite fragments. A 150-line-km ground geophysical survey over the area is nearing completion. In addition, a 5,200-line-km helicopter-borne magnetic and electromagnetic survey was carried out over newly acquired ground. Winspear plans to spend $1.5 million on the Hilltop property in 1999.
In related news, Winspear has proposed to create a separate company to hold all of its early-stage exploration properties. Winspear will continue to hold its interest in Camsell Lake. The company’s directors say the restructuring will enable each company to focus on its own business plan and allow shareholders to hold stock that reflects the value of Winspear’s portfolio of exploration properties.
For each share currently held, shareholders will receive one share of Winspear, which will continue to hold the Camsell Lake property, and 0.125 of a share of the new company, which will hold all of the Winspear’s exploration properties and “adequate working capital.”
The restructuring is subject to shareholder, regulatory and court approval.
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