DIAMOND PAGE — Aber and Gitennes farming out land package in

A letter-of-intent agreement with Aber Resources (TSE) and Gitennes Exploration (ASE) provides Trade Winds Resources (VSE) the right to earn up to a 50% interest in the YK East diamond project near Yellowknife, N.W.T.

The land package, which covers more than 44,000 hectares of claims about 5 km east of Yellowknife, was staked to cover the northerly extension of the structural corridor hosting a recently discovered kimberlite pipe. Airborne geophysical surveys are reported to have indicated the presence of numerous circular magnetic anomalies within the YK East area.

To exercise the option, Trade Winds must pay 200,000 of its common shares to Aber and Gitennes over the next year and spend $3 million on the property over four years. Work programs will focus on exploring for diamondiferous kimberlites.

Saskatchewan

* Drilling is scheduled to begin shortly to test geophysical targets on properties wholly controlled by Consolidated Pine Channel Gold (VSE) and on ground held in joint ventures with three other Vancouver-listed juniors — Mountain Province Mining, June Resources and Golden Marlin Resources. Pine Channel recently determined the priority of 20 drill targets for these properties.

Also, the company says drilling will begin on properties held in joint venture with Golden Peaks Resources (VSE), some time after ground geophysics are carried out and targets are determined.

* Swannell Minerals (VSE), operator of the 74,800-hectare Carrot River property 80 km east of the Fort a la Corne discoveries, says 13 magnetic anomalies were identified by a recent, low-level, airborne magnetic survey. The company is starting a $200,000 work program, to include closely spaced flight lines over the anomalies and followed by ground geophysics and exploratory drilling. Also involved in the Carrot River project are Calco Resources (VSE) and Golden News Resources (VSE).

Ontario and Quebec

* KWG Resources (ME) and Spider Resources (ASE) report that Ashton Mining of Canada (TSE) has agreed to fund exploration of the Kyle Lake and MacFadyen No. 1 kimberlites. The pipes were recently discovered as part of their Spider No. 1 joint-venture program in the James Bay Lowlands of Ontario. Ashton can finance any kimberlite to full feasibility for a half interest in any given pipe. It can earn a further 1% interest by providing production financing to KWG and Spider, which will retain 49%.

KWG previously discovered 2 macrodiamonds and 7 micros on the MacFadyen target and 10 macros and 91 micros on Kyle Lake. It and Spider are still awaiting results from five additional kimberlites (four of which are outside the Ashton agreement area) in the Spider No. 2 area.

* Arista Resources (VSE) has acquired several properties in the Cobalt area of northeastern Ontario.

More than 2,800 hectares have been staked along the Cross Lake Fault, as well as 518 hectares immediately west of the discoveries by KWG and Spider near Notre Dame Du Nord, Que.

Over the past couple of years, these properties were developed from the grassroots stage using funds from the Ontario Prospectors Assistance Program. Airborne magnetic and very-low-frequency electromagnetic surveys will be carried out in July.

* Jonpol Explorations (TSE) has staked 19 claim blocks in the James Bay Lowlands, about 150 km northwest of several known kimberlites on the Attawapiskat River.

These claims cover several magnetic features thought to represent kimberlites. * Consolidated Ojibway Resources (ME) has concluded a $150,000 private placement to finance exploration on its holdings in Le Tac, Ailly and Duplessis twps. in northwestern Quebec. The funds will be used to complete geophysical surveys and drill five circular, aeromagnetic anomalies. In other news, Ojibway has concluded a previously announced deal with SouthernEra Resources (TSE) regarding the former’s acquisition of all the assets of Diabec, a private diamond exploration company. Pursuant to the terms of the agreement, SouthernEra received 924,805 Ojibway shares at an average price of $1.15 per share.

Overseas

* Three juniors active in Brazil have agreed to merge their interests, pending all necessary approvals.

Southwestern Gold (TSE), Hillsborough Resources (TSE) and Vector Diamond (VSE) intend to combine their respective interests in the Canabrava project in Brazil’s Minas Gerais state.

Southwestern intends to sell its half interest to Vector in return for 11.5 million Vector shares. It will also acquire a further 1 million Vector shares (at 30 cents each) from Vector’s controlling shareholder, Hillsborough. Once these and related transactions are completed, Vector will hold a 100% interest in the Canabrava project. Accordingly, the board will be restructured to consist of three representatives of Southwestern and two of Hillsborough.

When the dust settles, Vector will have 25 million shares outstanding and Southwestern will be the largest shareholder with an approximate 54% interest. Hillsborough will hold about 27%.

The merger is expected to accelerate the financing, exploration and development of the Canabrava diamond project by reducing administrative costs and focusing management under one company.

* United Reef’s (TSE) pilot plant has started up on the Bamingui-Bangoran property in the Central African Republic. The plant is currently operating on two 7-hr. shifts, with each shift capable of processing 120 cubic metres of gravel. The addition of a third shift in the next few weeks should see the company recover about 2,500 carats of diamonds each month. United Reef hopes to recover more than 15,000 carats of diamond by year-end.

Exploration is also continuing along the left bank of the Bamingui River in order to define additional gravel resources.

Results of the pilot plant test and the exploration project will be released as they become available.