DIAMOND PAGE — Pipe A-180 in Canada’s North keeps Aber upbeat

For the year to date, Pipe A-180 has yielded the best results from the Diavik Diamonds block of properties in the Northwest Territories, reports Aber Resources (ABZ-T).

The most encouraging value derived from the pipe was a 271.8-kg kimberlite sample that showed 27 macrodiamonds and 152 microdiamonds. (A macro is defined as exceeding 0.5 mm in at least one dimension.)

In total, 47 holes were drilled into 30 targets in the first half of the year, and more than half of the caustic fusion microdiamond results remain outstanding.

Aber holds interests varying from 15% to 44.4% in 10 claim blocks covering 3,076 sq. km of ground in the Diavik area, near Lac de Gras.

The main Diavik block is held 40% by Aber and 60% by Diavik Diamonds, a division of London-based Rio Tinto (RTP-N).

This past spring, exploration drilling uncovered four new kimberlites, raising to 53 the number of kimberlites found there to date.

Another pipe, A-2, situated in the feasibility study area, returned partial results of 28 macros and 372 micros from 2,153.7 kg of drill core. No further work is planned for this pipe.

The proposed mine development plan at the Diavik Diamonds block centres on the mining of four kimberlite pipes, A-154 South, A-418, A-154 North and A-21, which contain a total resource of 37.4 million tonnes averaging 3.5 carats per tonne. Aber reports that the resource is equivalent to 133 million carats of diamonds with an average estimated value of US$56 per carat.

Priority will also be given to the construction of a 2-million-tonne-per-year diamond recovery plant.

A $30-million feasibility study is on time and budget, with completion expected before year-end. The study, which is being conducted jointly by Nishi-Khon, the aboriginal Dogrib Nation Group of Companies and SNC-Lavalin Group, is examining mining and processing rates ranging from 1.5 to 1.9 million tonnes of ore per year. At full production, the operation is expected to yield 6-8 million carats annually over a mine life estimated at 16-22 years.

Capital cost projections are in the range of $875 million, including a $75-million allowance. Aber is responsible for funding its 40% share.

The environmental assessment report for the project is scheduled to be filed with the Canadian government this month. The review process will include extensive local community consultations during the remainder of 1998. Government officials will then complete a comprehensive study report, based on advice from technical experts and a steering committee consisting of members of native communities and representatives of the territorial and federal governments.

After the report is submitted to the federal minister of the environment, it will be released for a period of formal public commentary. If public concerns have been adequately addressed and potential environmental impacts can be mitigated, the government will proceed with permitting.

Elsewhere in the Diavik area, the final results from three holes drilled last fall on the C-13 kimberlite zone at the Commonwealth claim block returned 86 macros and 184 micros from 958.2 kg of core. The Commonwealth block adjoins the southern boundary of the Diavik Diamonds project at the eastern end of Lac de Gras. The block is held 45.6% by Kennecott, 44.4% by Aber and 10% by SouthernEra Resources (SUF-T).

Aber says budgets and priorities for the overall 1999 exploration program at Diavik are being developed.

Farther north, at the Victoria Island Kuujjua project, Aber collected about 300 heavy mineral till samples and has begun processing for diamond indicators. The company holds 100% of the diamond rights. Earlier this summer, Major General Resources (MGJ-V) and partner Ascot Resources (AOT-V) announced that De Beers subsidiary Monopros had discovered five kimberlite bodies on their joint-ventured Victoria Island property. The discoveries were reported to be less than a kilometre from a number of diamondiferous kimberlite finds on Monopros’s own ground.

Meanwhile, on a separate nickel exploration program at Kuujjua, five geophysical anomalies were drilled with disappointing results. The drilling was funded by QNI, which has an option to earn up to a 60% interest in the non-diamond rights. London-based Billiton is a majority shareholder of QNI.

And at the Sunrise polymetallic project, 70 km north of Yellowknife, a drilling program by Aber’s joint-venture partner, Hemisphere Development (HSD-V), is reported to have more than doubled the previous resource estimate. The indicated and inferred resource stands at 4.9 million tonnes grading 5% zinc, 1.96% lead and 0.08% copper, plus 171.96 grams silver and 0.54 gram gold per tonne. A scoping study is under way.

Farther north, still, in western Greenland, Aber collected nearly 600 samples this summer. Regional work also identified several kimberlite dykes and boulder showings with encouraging visible indicator mineralogy. A drilling program will be considered if results warrant. Aber is earning a 50% interest in the project from Greenland-based Platinova (PAS-T).