Regal acquires claims covering Kirkland Lake diamond prospect

Toronto-based Regal Goldfields (COATS) has picked up nine claims covering a diamond-bearing kimberlite pipe 20 km northeast of Kirkland Lake, Ont. Discovered by LAC Minerals (TSE) in 1984, the pipe yielded eight diamonds greater than one millimetre in diameter from a 17-tonne sample, according to reports. The two largest diamonds are reported to weigh 0.08 and 0.17 carats respectively, Regal says.

Having paid $30,000 for property, Regal holds a 90% interest while its consultant, James Tilsley and Associates, holds the remaining 10%. The property is subject to a royalty equal to the greater of 10% net proceeds or 2% gross proceeds.

In order to maintain the property, the partners are required to make option payments totalling $1 million.

The claims became open for staking when the previous owner allowed its prospector’s licence to expire, Regal says. The former owner has applied to the Mining Commissioner to have the claims reinstated.

Regal is currently developing a plan for sampling the kimberlite to confirm the presence of diamonds and to determine their frequency, size distribution and quality.