DIAMOND PAGE — Diamondex defines Hilltop targets for drilling

Based on early results from summer till sampling on the Hilltop property in the Northwest Territories, Diamondex Resources (DSP-V) plans to drill-test three target areas in early 2000.

Diamondex was spun off from Winspear Resources (WSP-V) earlier this year. All of Winspear’s exploration properties, except Camsell Lake, were transferred to the new company. Diamondex currently holds varying interests in 10 properties covering 580,000 acres in the Northwest Territories.

The junior explorer spent $1.2 million this summer collecting more than 1,500 till samples from four properties. Although not all the samples have been processed, Diamondex has received encouraging results from the wholly owned Hilltop property, in an anomalous area where one microdiamond was recovered in 1998.

The 323,727-acre project adjoins the southwestern corner of the Camsell Lake property and includes 90,161 acres of scattered claim blocks comprising the Cache property, in which SouthernEra Resources (SUF-T) and Vaaldiam Resources (VRL-A) together hold a 20% interest.

During the summer field season, Diamondex collected 634 till samples from the Hilltop property and an additional 229 samples from the Cache property. With two-thirds of the samples processed to date, Diamondex has defined a southwesterly trending 7-by-1.5-km area of elevated indicator mineral counts on the Hilltop property. The anomalous area occurs in a regional background of scattered values that rarely exceed two indicator mineral grains per sample. The indicator minerals consist of variable quantities of pyropes, picroilmenites and chromites. The compositions of a significant number of the pyropes and chromites are consistent with having formed in the diamond stability field.

For follow-up drill-testing, Diamondex has outlined three sub-areas of high concentrations of indicator minerals. A 10-hole program of 1,600 metres is planned for this winter.

The Peanut target measures 300 by 110 metres and centres on a low swampy area. Till samples down-ice of this area contain an indicator mineral assemblage of pyrope, picroilmenite and chromite of up to 4, 21 and 20 grains respectively.

The Blueberry target measures 200 by 110 metres and coincides with a swampy depression. Till samples defining this target contain elevated counts of up to 15 pyropes, 56 picroilmenites and 61 chromites. Kimberlite fragments are associated with some of the samples down-ice.

The Jen Lake target coincides with a swampy area on the northeastern side of a small lake, 450 metres southeast of Blueberry. Till samples defining the 350-by-200-metre target are characterized by assemblage of pyrope, picroilmenite and chromite of up to 2, 26 and 17 grains respectively. Some of the samples are associated with kimberlite fragments.

Three additional secondary targets in the main trend require follow-up till sampling.

Diamondex also carried out sampling programs over the Carat and Char properties. The 94,363-acre Carat property adjoins the northeastern corner of the outlying Buffer zone claim block surrounding the Ekati mine property. Carat is held under an 70% option agreement with Tyler Resources (TYS-T>. APPROXIMATELY TWO-THIRDS OF THE 143 TILL SAMPLES COLLECTED THIS YEAR HAVE BEEN PROCESSED. NO SIGNIFICANT ANOMALIES ARE RECOGNIZED.

THE CHAR PROPERTY SITS ABOUT 100 KM NORTHEAST OF CAMSELL LAKE. DIAMONDEX CAN EARN A 70% INTEREST IN THE 99,323-ACRE PROPERTY FROM PARTNERS INTERNATIONAL RILEY RESOURCES (IRR-V) and ITL Capital (ICL-V). The bulk of 439 till samples collected this past summer have yet to be processed.