BHP, Dia Met driving decline on third pipe

Partners BHP Minerals Canada and Dia Met Minerals (TSE) have applied to drive a decline and bulk-sample a third kimberlite pipe at their diamond project near Lac de Gras in the Northwest Territories.

A smaller sample of 229.47 tonnes yielded 269.99 carats from the Panda pipe, one of five new pipes tested in a reverse circulation drill program. What is particularly intriguing about this target is that most of the stones are described as “gem or near-gem quality” — an observation made by BHP technicians, as the diamonds were not submitted to outside appraisers. The 5,000-tonne bulk sample from the Panda pipe will be in addition to large samples being taken from the Fox and Koala pipes. Panda is about 1.2 km northeast of Koala and has an indicated area of 3.03 hectares. BHP and Dia Met also reported that the underground decline into the Fox kimberlite is on schedule and about 1,250 metres from the portal. Kimberlite is expected to be intersected in mid-April and the 5,000-tonne bulk sampling program will begin in early May at the rate of 100 tonnes per day. Technical difficulties were encountered at the Koala pipe, where a large-diameter rig was being used to extract a 3,000-tonne sample. “We had some problems in the beginning such as getting through boulders, but it is working fine now and we intend to continue for as long as ice conditions permit,” said Dia Met President James Eccott. “We expect to get about one half of the desired sample, but we think it will be enough to give us the information we need.”

Sampling and drilling will continue through spring and summer. Elsewhere in the Northwest Territories

* A 5,000-ft. drill program is set to begin on the Point Lake property held jointly by Garden Lake Resources (VSE), RJK Explorations (CDN), SouthernEra Resources (TSE) and Aaron Oil (ASE). Twelve targets have been chosen based on indicator mineral and magnetic anomalies.

Garden Lake and SouthernEra also report that a previously abandoned hole on their Jolly Lake property will be completed later this month. Alberta

* Sentinel Resources (VSE) can earn a half interest in Golden Marlin Resources’ (VSE) Lucky 7 property in the Legend area of southern Alberta. The property is the site of the first confirmed diamond discovery in the province. Under the deal, Golden Marlin will receive 20,000 Sentinel shares and Sentinel will fund a $50,000 work program.

The Western Shield Prospecting Syndicate, in which Golden Marlin has a 13.9% interest, can earn a half interest in the property.

Ontario and Quebec

* Partners Strike Minerals (CDN) and Findore Minerals (CDN) have completed line cutting and ground geophysics on the AM-47 kimberlite pipe in Arnold Twp. and four properties in Tannahill Twp. (Both townships are near Kirkland Lake, Ont.)

All five properties will be drill-tested beginning in May.

* Three holes drilled by Spider Resources (ASE) on its James Bay joint venture in the Attawapiskat River area of northern Ontario, have intersected a kimberlite body.

Petrographic analysis has identified the material as diatreme kimberlite facies. A 50-kg sample analyzed at Ashton Mining’s Australian laboratory yielded two microdiamonds. In light of this discovery, further work is planned.

Spider has a 30% interest in the project with KWG Resources (ME) holding the balance. Ashton Mining of Canada (TSE) has an option to earn 51%. * Consolidated Oasis Resources (ME), Diabior Explorations (ME) and William Resources (ME) have signed an agreement with Soquem on their Ailly Twp. property in northern Quebec. Under the deal, all parties will have a 25% interest.

Three holes drilled by Diabior and William earlier this year intersected kimberlite dykes on the 11-claim property.

Overseas

* Radisson Mining Resources (ME) has negotiated a private placement of 5.2 million shares at 48 cents per share to raise nearly $2.5 million. One warrant is attached to each share and four warrants entitle the holder to buy one share at 65 cents for an 18-month period.

The placement will be used to bring to production the company’s Central African Republic placer diamond property.

* Canhorn Mining (TSE) has sold its control block in United Reef (TSE) which is developing the Bamingui property, also in the Central African Republic. The 5-million share block was placed with European institutional investors at a price of 65 cents per share, for gross proceeds of $3.25 million. In an unrelated transaction, Canhorn also sold 1.5 million shares of United Reef to a private Ontario corporation owned and controlled by Michael Coulter and Kenneth Johnson, both of whom are officers of United Reef. The purchase price was $750,000, payable by way of a promissory note to Canhorn. Canhorn continues to hold about 800,000 shares of United Reef.