THE DIAMOND PAGE — Canabrava finds large diamond in Brazil

A 37.8-carat diamond has been recovered from a small stream that drains five magnetic targets on Canabrava Diamond’s (CNB-V) joint-ventured Quintinos property in eastern Brazil.

The targets form part of the 850,000-ha Canabrava property, 400 km southwest of Brasilia in Minas Gerais state.

Teck (TEK-T) can earn a 60% interest in the property, and last year the joint venture drilled 108 magnetic targets, outlining 84 new kimberlites and lamproites. Five of these were tested for microdiamonds, with two returning positive results. One of the pipes containing micros was a lamproite.

In the Lagamar area of the project, studies of diamonds recovered in stream sediments suggest they have been transported over short distances. A program to test the bedrock will begin immediately, the company says.

“We’re drilling every day — core as well as auger,” says Daniel Innes, Canabrava’s vice-president of exploration.

To earn its 60% interest, Teck must spend US$10 million on exploration over five years, produce a bankable feasibility study, bring a deposit into production and pay Canabrava US$20 million, including option payments of US$500,000 each April until 1999.

In the Paranaiba area, the joint venture has discovered a kimberlite pipe measuring 44 ha. Five holes were drilled into the pipe, and an 80-kg sample was shipped to Canada for caustic disolution analysis.

Meanwhile, northeast of Wawa, Ont., Canabrava has acquired 75,000 ha which are believed to be prospective for diamondiferous kimberlite. Studies of stream sediment, carried out by the Ontario Geological Survey, indicate that kimberlite indicator minerals have the same composition as those found in kimberlite pipes in the Northwest Territories.

“The survey discovered indicator mineral trends, good, sub-calcic G10 garnets and alluvial diamonds in one small dyke,” says Innes.

Canabrava Diamond is 52%-owned by Southwestern Gold (SWG-T).