DIAMOND PAGE — Kennecott, BHP set to launch bulk-sampling

The push to prove up an economic diamond deposit has begun in earnest in the Lac de Gras region of the Northwest Territories.

Two international majors, Kennecott and BHP Minerals, are moving ahead with plans to bulk-sample diamondiferous kimberlites on their respective joint-venture projects in the region.

Kettle River Resources (VSE), one of Kennecott’s junior partners, has announced plans for a normal course issuer bid through the Vancouver Stock Exchange. The directors say the bid to buy up to 5% of the company’s outstanding shares during the next year will help stabilize the market price of the shares.

Northwest Territories

* Meanwhile, the share prices of several diamond exploration companies active in the Territories have come under downward pressure in recent weeks, but financings are continuing nonetheless. Lytton Minerals (TSE) announced a European financing (to be carried out by First Marathon Securities on a best-efforts basis) for 1.75 million units at $4.25 (one share and one warrant). The junior has one of the largest land packages in the Lac de Gras region.

* Rumors are still swirling about Ashton Mining of Canada’s work program in the Humpy Lake area, west of Lac de Gras. Talk on the street is that the core from one of the company’s joint-venture projects has been shipped to Australia for analysis, which, if true, means a kimberlite was likely found. There is also talk that favorable indicator minerals have been found on Ashton’s joint venture with Pure Gold Resources (VSE) and Tenajon Resources (VSE) in the Humpy Lake area.

* Connors Drilling will carry out a major drill program on the Snare Lake property near Humpy Lake, according to partners Winspear Resources (VSE) and International Vestor Resources (VSE). The program is designed to test geophysical anomalies coincident with high concentrations of diamond indicator minerals.

* Lucero Resource (VSE) and Adex Mining (TSE) have released results from ongoing exploration on the MacKay Lake property near Lac de Gras. No indicator minerals were recovered from preliminary examination of 40 of 45 basal till samples (the other five are yet to be completed). Adex geologists suggest that analysis of indicator minerals “may not be an appropriate exploration technique” and are applying other criteria to anomalies. * A recently completed airborne magnetic survey has outlined several bull’s-eye magnetic anomalies on Barexor Minerals’ (ME) Aylmer Lake diamond project, also near Lac de Gras. The magnetic anomalies correspond to areas where kimberlite indicator minerals and an eclogitic kimberlite sample have been recovered. Diamond drilling of favorable targets is expected to begin shortly.

* Partners Tanqueray Resources (ASE), Fibre-Klad Industries (ASE) and Mill City Gold Mining (ASE) have intersected a kimberlite in the first two holes on their Yamba Lake property.

The first hole, drilled to test a magnetic anomaly with an indicator mineral train, intersected 138 metres of kimberlite.

The second hole, drilled into the same pipe to define its geometry more precisely and collect additional material, is still under way. Saskatchewan

* Falcon Ventures (VSE) is still expanding its exposure to claims considered prospective for diamonds in the province. A recent agreement with Island-Arc Resources (VSE) allows the company to acquire a 12.5% working interest in claims covering 137,200 hectares in the Wood Mountain area. This acquisition complements Falcon’s interests in several other south-central Saskatchewan properties where diamond exploration activities are in progress. Manitoba

* Reports place the number of claims that have been staked in southern Manitoba during the past 18 months at 1,000. The claims were staked mainly on the basis of aeromagnetic data.

The recently released GSC Open File 2685 (R.G. Garrett and L.H. Thorleifson) documents the recovery of kimberlitic indicator minerals from 10 of the 20 widely spaced till samples collected in that part of the province. The indicator minerals reported are peridotitic and eclogitic garnets, picro-ilmenites and chrome diopsides. Sites south of Brandon and Winnipeg yielded five peridotitic garnets, including a G10 near the town of Reston. The file also documents indicator minerals recovered from samples in Saskatchewan and Alberta.

Overseas

* Sage Resources (VSE) has recovered 162 diamonds weighing 13.87 carats from three separate drainage localities on the Beta Creek project in Australia. The junior has an option to earn a 30% interest in the project, subject to approval of the Vancouver Stock Exchange. Exploration is continuing to refine kimberlite targets.

* Nora Exploration (ME) has been granted a prospecting licence on a gold and diamond concession in Ghana, West Africa. The 41.5-sq.-km concession is in the centre of the country’s largest diamond field.

Previous exploration on a 2.1-sq.-km portion of the property outlined 560,000 cubic metres grading 0.92 carats and 0.62 grams gold.

Nora plans extensive exploration, including a bulk sample from the reserve block and systematic pitting over the remainder of the concession. Upon completion of the program, a feasibility study will be carried out.