More about diamonds (February 22, 1993)

Canadian mining companies are involved in the search for diamonds both at home and abroad:

N.W.T. — Ashton Mining of Australia has elected to exercise the buyback clause in its joint venture agreement with Pure Gold Resources on the Humpy Lake property. Ashton plans to carry out airborne and ground geophysical surveys, till sampling, and diamond drilling on the property during the 1993 field season. Pure Gold’s share of exploration costs for 1993 will be $1.25 million. Pure Gold has also acquired an additional 884,000 acres in the Winter-Aurora and Clinton-Alymer Lake areas. These areas will be sampled by Ashton this summer.

— Shareholders of Geomaque Explorations (CDN) have voted in favor of acquiring all the outstanding shares of a private Ontario company that holds 25 groups of claims in the Lac de Gras area.

— Gold Vessel Resources (ASE) has acquired varied interests in five properties totalling about 830,000 acres in the Lac de Gras area. The aggregate obligations of Gold Vessel under all the agreements amount to the issuance of 400,000 shares, cash payments of $1.7 million, expenditures of up to $1 million and royalty payments.

— Lytton Minerals (TSE) and joint venture partner Snowpipe Resources are in the final stages of staking about five million acres north of Lytton’s current land holdings in the Lac de Gras area.

— Mill City Gold Mining (ASE) is raising $1.2 million through a private placement to help fund work on a 152,500-acre property that adjoins the Point Lake discovery in the Lac de Gras area. Mill City is earning a 50% interest in the property from Tanqueray Resources (ASE) and Fibre Klad Industries (ASE).

— Teryl Resources (VSE) can earn a 51% interest in the 31,506-acre Aylmer Lake property in the Lac de Gras area by paying $10,000 cash, issuing 100,000 Teryl shares and expending $500,000 on the property over five years. The property lies about 50 miles southeast of the Point Lake discovery. Exploration, consisting of an airborne geophysical survey and till sampling, will be carried out on the property in April.

— Melinga Resources (VSE) and joint venture partner Westwin Ventures (VSE) have acquired a 100% interest in 731,994 acres and a 50% interest in 442,090 acres in the Dubawnt Lake-Thirty Mile Lake area.

Melinga also holds an interest in an additional 500,000 acres with Comaplex Minerals, a subsidiary of Comaplex Resources International (TSE) in the Griffin Lake area.

Ontario

— Cross Lake Minerals and Cathedral Gold (TSE) have formed a 50-50 joint venture to explore seven diamond properties in the Timmins-Kirkland Lake area. — Joutel Resources (TSE) plans to drill a 500-ft. hole to test a magnetic anomaly in the northwest portion of Tyranex Gold’s (CDN) Pense Twp. property, 30 miles southwest of Kirkland Lake. Upon completion of the hole, Joutel can elect to continue exploration by making cash payments to Tyranex of $15,000, issuing 100,000 Joutel shares and completing $250,000 in exploration expenditures by February, 1996.

Overseas

— United Reef Petroleums (TSE) has started an exploration program on its Bamingui diamond project in the Central African Republic. The company has also opened an office in the capital city of Bangui.

— The Central Selling Organization, the diamond marketing arm of De Beers Consolidated Mines, has announced an overall price increase of 1.5% for rough gem diamonds, particularly in the size range above three quarters of a carat. — SouthernEra Resources (TSE) is continuing its 20% participation in the Leicester Diamond Mine project near Kimberley, South Africa, along with partners Stow Resources (VSE), Dryden Resource (VSE) and property vendor Beckleigh Investments. The partners are presently constructing a recovery plant to process an 80,000-ton sample. A 16,400-ft. drill program is also being conducted to further evaluate the Leicester kimberlite.