Dealing in diamond prospects sustains exploration activity

Activities related to the hunt for diamonds continue on several fronts across Canada.

In the Northwest Territories, Leeward Capital (VSE) and Skeena Resources (VSE) report signing a letter of intent to option four of their recently acquired diamond exploration properties in Keewatin district to Connecticut Development (VSE).

Connecticut will pay $39,000 in cash, issue a total of 100,000 shares and undertake $250,000 in exploration work during the next two years to earn a 50% interest in the properties.

In the Dubawnt area of the N.W.T., Leeward says it has identified seven priority areas as possible diamond-bearing lamproite pipes. Skeena funded an initial staking program to acquire these targets.

Kingswood Resources (ASE) has signed an option agreement with Acadia Mineral Ventures (TSE) giving Kingswood the right to earn a 75% interest in a 52,000-acre property east of Echo Bay Mines’ Lupin gold mine. Kingswood says geophysical surveys indicate kimberlite pipes, the host rock for diamonds, may be present on the property. It also says the property is prospective for gold exploration including a folded iron formation similar to the geological setting of the Lupin mine.

In north-central Saskatchewan, Aaron Oil (ASE) says it has entered into a joint venture agreement with Rhonda Mining (ASE) to explore for diamonds in the Sturgeon Lake, Fort a la Corne and Pasqua Hills areas.

In the Sturgeon Lake area, Aaron will earn a 20% interest in about 51,000 acres by paying $20,000 and issuing 150,000 common shares to Rhonda. A diamond drilling program is expected to be started up this October. Aaron also owns other property (4,480 acres) at Sturgeon Lake and 103,600 acres in the Lac de Gras area of the Northwest Territories.

Along the Ontario-Quebec border, a low-level regional airborne survey is anticipated by KWG Resources (ME) in the Kirkland Lake, Ont., area. The junior says the Quebec-based portion of its 70% controlled joint venture consists currently of nine claims acquired from a private British Columbia corporation. A further 70% interest in six claims was recently acquired by the joint venture through the acquisition of an agreement between the British Columbia corporation and Strike Minerals (CDN).