Dia Met forms Finnish partnership with Ashton Mining

Dia Met Minerals (DMM-T) is expanding its search for kimberlite pipes in Finland by entering into a joint venture with Australia-based Ashton Mining.

The two companies feel that the integration of their large databases and proprietary techniques will enhance ongoing exploration.

The joint venture covers two areas in the eastern part of the country, one of 38,475 sq. km and another of 40,750 sq. km. Dia Met can earn a 60% interest in the properties by spending $4 million on exploration over the next three years; the Kelowna, B.C.-based company is committed to spend at least $2 million over the next two years.

Dia Met has been active in Finland since 1995, and Ashton began looking for Finnish diamonds the following year. A country-wide regional sampling program has identified several prospective areas.

Ashton has discovered 24 kimberlites to date in Finland, 16 of which are confirmed to be diamond-bearing. Mini-bulk sampling was carried out on five pipes. Results from four of the pipes are as follows: a 23.3-tonne sample from Pipe 7 yielded 5.99 carats of diamonds, for a preliminary grade estimate of 25.7 carats per 100 tonnes; a 9-tonne sample from Pipe 12 returned a parcel of diamonds weighing 1.63 carats, equal to a preliminary grade of 17.3 carats per 100 tonnes; a 3-tonne sample from Pipe 13 yielded 0.43 carat, for a preliminary grade of 14.3 carats per 100 tonnes; and 16.6 tonnes from Pipe 21 returned 4.41 carats of diamonds, equivalent to a preliminary grade of 26.6 carats per 100 tonnes. The grade of the fifth pipe was not commercially significant.

The four pipes range in size from 0.9 to 1.8 ha.

The mini-bulk sampling program was designed to recover only those diamonds measuring more than 0.8 mm in diameter.