DIAMOND PAGE — Redaurum acquires Colorado kimberlite

Redaurum (RRK-T) has augmented its Colorado holdings by acquiring the Maxwell kimberlite pipe property.

The property, which had belonged to a private Colorado company, is 2 km west of Redaurum’s producing Kelsey Lake diamond mine.

The Maxwell kimberlite was discovered in 1979 but has since seen only limited exploration and evaluation. The diamondiferous pipe has a surface area of approximately 5.6 acres.

Work undertaken in 1982 included 85 shallow delineation drill holes, detailed ground geophysical surveys, and a 78-tonne bulk sample which yielded diamonds of similar quality to those being recovered at Kelsey Lake.

The Kelsey Lake kimberlites are producing 65% gem-quality diamonds, 30% of which are greater than one carat, having an average sale value to date of US$173 per carat.

According to a Redaurum release, the Maxwell pipe presents a “simple evaluation and development opportunity,” consisting of a highly weathered kimberlite with only a thin cover of topsoil situated a short distance from Redaurum’s treatment plant.

The company will begin preparation for a 10,000-tonne bulk sample of the Maxwell pipe to determine if the satellite orebody can be economically treated through the Kelsey Lake plant. If successful, this would provide an additional resource and extend the mine life beyond the currently proposed 12 years.

Because kimberlites typically appear in clusters (there are eight on the Kelsey Lake property), Redaurum believes additional kimberlite pipes may occur on the Maxwell property. The company is planning an exploration program to locate new kimberlites.