DIAMND NEWS ROUNDUP — Sampling results reported from

Vancouver-listed Trade Winds Resources has received initial diamond recovery results from limited sampling of three widely spaced drill holes on the Drybones Bay kimberlite pipe near Yellowknife, N.W.T.

Caustic dissolution by Lakefield Research yielded 2 microdiamonds from 36.1 kg of sample for hole 95-2; 4 micros and 2 macros from 36.3 kg for 95-3; and no diamonds from 58.7 kg for 95-5. Holes 2 and 3 were drilled with NQ (47.6-mm) diameter core while hole 5 was drilled with BQ (36.5-mm) diameter. More than 200 kg of samples, representing the remainder of the core, are being processed.

The holes identified several distinct lithotypes within a well-defined crater and diatreme facies of the kimberlite intrusion. The macrodiamonds are reported to occur in a distinct lithotype from the upper part of the crater facies.

An additional 650 metres of NQ drilling are being completed in an effort to delineate the pipe. Hole 95-6, drilled in the centre of the intrusion, has recovered 166 metres of uniform diatreme facies. Hole 95-7 has stepped out 175 metres and is now being drilled.

Based on drill results and geophysical data, Trade Winds believes the Drybones Bay kimberlite has a possible surface area of 25 to 30 hectares. The company can acquire an 80% interest in the property. SouthernEra Resources (TSE) is acting as project manager for the program.

Just north of the Drybones discovery, Trade Winds has entered into joint ventures with SouthernEra and Caledonia Mining (TSE) concerning the DEF and CHA claim blocks. At the former, drilling is under way on a target that was defined by airborne and follow up ground magnetics. Trade Winds retains a half interest in each of the joint ventures.

Elsewhere in the Northwest Territories

* With the pace of diamond exploration gathering steam in Canada’s North, SouthernEra Resources has announced details of proposed drill programs near Camsell Lake and Drybones Bay.

The Toronto-based junior has whetted its appetite on several diamond discoveries in the Territories, although none of those targets has yet reached the threshold of economic interest. SouthernEra is about to start drill-testing several geophysical targets on Kalahari Resources’ (VSE) property north of the boundary line between the Mountain Province and Winspear Resources’ ground near Camsell Lake.

As manager of Kalahari’s properties, SouthernEra can earn a 70% interest by spending $1.7 million, subject to Kennecott Canada’s back-in rights to a maximum of 35% in Mackay Lake and 30% in the Back Lake blocks. So far, SouthernEra and Kalahari have spent about $3 million on the property. In addition, SouthernEra holds a nearby claim block in which Noble Peak Resources (ASE) is earning a 40% interest, and another, in which Major General Resources (VSE) is earning the same amount. A $500,000 drill program has been announced for the latter block.

* Several targets in the Drybones Bay area will also be drill-tested. Three of these are on properties held jointly with Caledonia Mining and one target is held jointly with Caledonia and Trade Winds Resources. Work is also planned for other properties in the Territories.

* Texas Star Resources (TSE) has agreed to sell all its interest in 739,000 acres of mineral claims in the Lac de Gras area to Pure Gold Resources (TSE) for a staged payment of $300,000 and 3.5 million shares of Pure Gold. The agreement is subject to an option and joint-venture agreement with Lytton Minerals (TSE), under which that company can earn a half interest in the claims by spending $5 million. To date, Lytton has spent $2.74 million on sampling and airborne geophysics.

Texas Star retains a back-in right for 10% of Pure Gold’s interest through a payment of $250,000 once $2 million worth of drilling is carried out. * A sampling program is to begin soon on the recent acquisition of 58,290 hectares of land situated in the Corridor of Hope, 20 km southeast of Mountain Province’s diamondiferous kimberlite discovery. The joint-venture group includes operator Tanqueray Resources (ASE) holding a 40% interest; Mill City Gold Mining (VSE) with a 30% interest; Almaden Resources (VSE) owning 15%; and Williams Creek Explorations (VSE) holding 15%. * United Compass Resources (VSE) intends to acquire 37.5% of Lucero Resource’s (VSE) 50%-held option on the MacKay Lake property near Lac de Gras. To do so, it would be required to pay $160,000 and assume the balance of a $740,000 work commitment. Adex Mining (TSE) holds the other half interest.

* Shane Resources (VSE) reports that a preliminary, 1-hole drill program failed to intersect any kimberlite at the Ryan Lake property, north of Yellowknife.

* NDU Resources (TSE) dropped its option on 46 prospecting permits concerning the Mountain Diatreme property in the Mackenzie mining district. Systematic mapping and sampling failed to uncover any diamonds. NDU still holds 16 claims encompassing certain targets.

Saskatchewan

* Miranda Industries (VSE) detected no primary kimberlite in any of its recently drilled holes on three magnetic targets in the Tobin Lake area. The targets were selected on the basis of aeromagnetic surveys and follow-up ground magnetics. The first target was a 50-50 joint venture with Coronation Mines, a wholly owned subsidiary of Formation Capital (VSE), while the second was a joint venture with Coronation Mines (50%) and Vancouver-listed First Choice Industries (25%).

The third target was situated in the claim block S-103400, held 50-50 by partners Golden Peaks Resources (VSE) and Consolidated Pine Channel Gold (VSE). Miranda, First Choice and Coronation are earning a combined 33.3% interest.

Follow-up ground geophysics are under way by Arista Resources (VSE) on its claims in the Montreal Lake Molonosa Arch area of Saskatchewan. Results will be used to re-evaluate drill targets defined in 1994.

Ontario

* Partners KWG Resources (TSE) and Spider Resources have discovered another kimberlite body within the Spider No. 1 project area in the James Bay Lowlands. This brings to five the number of discoveries made in the region. The latest find, Kyle No. 3, was intersected at a depth of 30 metres and was subsequently terminated at 213 metres in the kimberlite. The Kyle No. 3 and No. 2 have the same geological characteristics as the Kyle Lake discovery (T.N.M., April 10/95), except that they are much shallower. Both are on dry land and will be further tested in May.

* Currie Rose Resources (VSE) is about to begin sampling in two target areas on its diamond exploration claims in Wawa, Ont. Geophysical work is also planned.

The junior says its 1995 exploration program will expand on work already carried out by the Ontario Department of Mines. The results of this work, contained in Open File Report 5908, are regarded as “extremely encouraging” by Currie Rose.

Overseas

* Serengeti Diamonds (VSE) intends to undertake four major advancements of its properties in the Tanzanian craton, which it believes to be a prime target for diamonds.

Specifically, the junior intends to increase its mining claim blocks at Kahama and continue production testing using the 50-ton-per-hour plant; carry out bulk-sampling using a 5-ton-per-hour, portable plant on mining claims at Mabuki and Mwamanga; evaluate kimberlite discoveries by pit testing and (possibly) drilling; and continue regional geochemical and magnetic exploration for kimberlite occurrences on the large reconnaissance licences. * A $390,000 exploration program will begin shortly on Amarado Resources’ (VSE) Kareevlei Wes project in the Kimberly region of South Africa. Previous drilling identified a cluster of three kimberlites with a combined surface area of 8.7 hectares. A total of 96 diamonds were recovered, four of which were larger than 0.2 carats and of gem quality.

The program will consist of eight 1.2-metre (48-inch) diameter drill holes designed to bulk-sample the kimberlite pipes. A single hole will test a previously defined geophysical anomaly, while geophysics will be carried out over the remaining untested portion of the property.