DIAMOND NEWS ROUNDUP — Third kimberlite uncovered at Cross diamond joint venture

Exploration on the Cross property in the Northwest Territories has led to the identification of a third kimberlite pipe for partners Ashton Mining of Canada (TSE), Tenajon Resources (VSE) and Pure Gold Resources (TSE).

The new pipe sits under about 1 metre of overburden and is believed to measure less than a hectare in surface area.

Ashton has already extracted about 300 kg of material from the pipe and plans to recover, by pitting, more than 2 tonnes of kimberlite for diamond testing. Ashton can earn a 51% interest in the Cross property by providing all costs up to, and including, a 20-tonne bulk sample from each kimberlite discovered.

Elsewhere in the Northwest Territories

Joint-venture partners on the Back Lake-Mackay Lake property hope to define drill targets by mid-October.

SouthernEra Resources (TSE) has collected more than 2,200 till samples to date and, although only a portion has been processed, kimberlite indicator minerals appear to form three discrete trains.

Follow-up work will attempt to narrow down the source area in an effort to identify targets using existing geophysical and structural information.

SouthernEra is earning a 70% interest in the project, which would leave Kalahari Resources (VSE) with an undivided 30% interest in Mackay Lake. The remaining 30% interest in Back Lake is split between Kalahari and a syndicate of other juniors.

Kennecott holds a one-time back-in right for a 35% interest in Mackay Lake and a 30% stake in Back Lake.

Saskatchewan

* Work is continuing on the Fort la Corne Diamond project, a joint venture involving Kensington Resources (VSE), Uranerz Exploration & Mining, Cameco (TSE) and Monopros.

Of the eight kimberlites tested with large-diametre drilling, four contain microdiamonds. Counts range up to 33 micros from a 17-kg section of core in kimberlite No. 147.

At DeBeer’s treatment plant in South Africa, 162 tonnes of mini-bulk samples will be processed to determine macrodiamond counts.

* Using high-sensitivity, fixed-wing, airborne geophysics and ground geophysics, White Swan Resources (ASE) has identified 159 anomalies on its 270 mineral claims in north central Saskatchewan. Of those, 32 have been classified as first-priority targets with excellent potential for diamond recovery.

Ground geophysics on the first-order targets will define targets for diamond drill testing. Ground work on accessible targets is under way, and work on remaining targets will follow after freeze-up.

Overseas

* A private placement of 3.4 million shares of Archangel Diamond (VSE) at 80 cents per share will provide the company with additional funds for ongoing bulk sampling and exploration work on its two diamond joint ventures in northwestern Russia.

United States

The 40-sq.-mile Volcano-Rancheria district of northern California, once rich with gold, is being scanned for diamonds.

More than 800 diamonds were recovered over the years from the primitive sluice boxes used to separate out the gold found in the area’s gravels, yet Diadem Resources (ME) believes that was only a drop in the bucket. The company, which has an option to acquire a 60% interest in specified areas within the Volcano-Rancheria district, has exposed an ancient river channel buried under a lava rock cap. Drilling is under way in an effort to define the total extent of the channel.

Diadem has installed a sampling plant capable of recovering both gold and diamonds.