DIAMOND NEWS ROUNDUP — Parker Lake diamond discovery prods

An unusual and unexpected diamond find at the Parker Lake property, west of Hudson Bay in the Northwest Territories, sent a momentary shock wave through an otherwise sleepy diamond market.

The Geological Survey of Canada (GSC), in association with the University of Western Ontario, announced that a 22-kg surface bulk sample from the property yielded some 1,511 microdiamonds and 2 macros.

The announcement was made after a diamond was discovered in a sample collected during a study of copper and zinc mineralization on the property. The occurrence is unusual in that the diamonds are hosted in an ultrapotassic dyke or lamprophyre, not in kimberlite or lamproite.

A 32.8-kg check sample, taken by Dia Met Minerals Chairman Charles Fipke, confirmed the find, returning a total of 1,163 diamonds (including 6 macros). The discovery gave a boost to the companies that hold the property. Fifty per cent owner Cumberland Resources (VSE) traded as high as $1.95 before settling at the $1.63, up from the $1.25 level. Manson Creek Resources (VSE), which owns 25%, more than doubled to 79 cents before slipping to the 55 cents level, while Comaplex Resources (TSE), which holds the balance, edged up 15 cents to the $1.05 level after hitting $1.30.

Cumberland President Glen Dickson does not expect the dyke to be economic but says its presence indicates that the area may contain economic concentrations of diamonds. A number of sizable, mantle-derived, diatreme pipes of similar origin to the diamondiferous dyke are in the area, according to the joint venture. There are also several circular, magnetic and topographic features on the property which the companies believe could be indicative of diatremes or kimberlite pipes.

Exploration plans are in limbo while joint-venture discussions with interested major mining companies proceed.

Diamond exploration is an expensive pursuit, and Dickson said Cumberland is better off bringing in a major to fund work on the ground while it concentrates on the nearby Meliadine and Meadowbank gold projects, both of which are joint ventures with Comaplex.

Elsewhere in the Northwest Territories

Partners New Indigo Resources (ASE) and Lytton Minerals (TSE) have intersected a kimberlite pipe on their 3.6-million-hectare joint venture in the Territories.

The pipe is entirely land-based and, along with other targets in the area, is currently being drilled.

The companies plan to issue $8 million each in convertible debentures, on a private placement basis, through First Marathon Securities. The 7-year debentures will pay 4% and convert into common stock, based on $1.75 for Lytton and $6 per share for New Indigo.

* Drilling on the AK property has intersected a kimberlite pipe. The ground is held 50% by Mountain Province Mining (VSE), 40% by Glenmore Highlands (ASE) and 10% by Camphor Ventures (VSE).

The current drilling is attempting to delineate the pipe, as well as test other prospective targets.

Lytton Minerals owns 47% of Glenmore’s outstanding shares.

* The issue of 1 million shares at a deemed price of 35 cents each (in settlement of about $357,000 in debt) gives Chapleau Resources (VSE) a 35% stake in 229,200 hectares of the Black River project.

Geophysical surveys have outlined nine targets, and further geophysical work is planned on 22 other targets.

Chapleau can earn up to a 75% interest in the project by spending a further $1.25 million by the end of 1996.

* SouthernEra Resources (TSE) reports that test results are now available from drill core samples collected last fall from the Nicholas Bay kimberlite on the Aylmer Lake West property.

A 120-kg sample of split drill core was composited from the two principal phases of kimberlite present in the pipe. The sample consisted of 58% massive kimberlite and 42% kimberlite breccia. This material was submitted to Lakefield Research for caustic dissolution diamond recovery, with the coarse and fine fractions treated separately.

The fine fraction yielded 34 diamonds, ranging in size from 0.1 to 0.37 mm, which is generally consistent with results from an earlier test on a 230-kg sample. The coarse fraction contained five diamonds ranging in size from 0.15 to 0.31 mm. Additional kimberlite targets are being considered for possible drill-testing this year.

SouthernEra can earn a 34.4% interest in Aylmer Lake West, with Adex Mining (TSE) holding 32.5% and Winspear Resources (VSE) holding the balance. * Geophysical and drilling programs will begin in March on several of Caledonia Mining’s (TSE) diamond projects throughout the Territories. These include the Drybones Bay joint venture and the Kikerk Lake and Bagpipes properties.

* Drilling of six to seven holes is to begin on Trade Winds Resources’ (VSE) Drybones Bay property near Yellowknife. The 3,000-ft. program will delineate the kimberlite pipe and recover 3,300 lb. of drill core samples. SouthernEra (TSE) will operate this initial phase, with Trade Winds earning an 80% interest in the property.

Manitoba

* Miranda Industries (VSE) is drilling on its Fast and Saw properties in the Snow Lake area. A government-sponsored airborne magnetics survey, combined with the company’s initial ground magnetic profiling, has outlined four anomalies. One of these coincides with Saw Lake, and Miranda believes it could represent the weathering of a kimberlite. The company is earning an 85% interest in the two properties.

United States

* Once again, the deadline by which BHP Minerals International Exploration can earn a 51% interest in the Idaho diamond prospect of Golconda Resources (ASE) has been extended.

A delay in obtaining assay results from Lakefield Research on 2.7 tonnes of reverse-circulation drill samples is the reason why Golconda extended the deadline.