N.W.T. diamond projects keep SouthernEra busy

Aside from spending $1 million this year to explore its claim blocks in the Lac de Gras area of the Northwest Territories, SouthernEra Resources (TSE) will investigate four other diamond prospects in North America, President Christopher Jennings told shareholders at a recent annual meeting.

“I’m very excited about one of the other areas but I can’t say more than that,” he said. Jennings also hinted that he is looking at a former diamond producer as a source of immediate revenue for the company.

“I have something in mind that’s beyond the dream stage. If we could get a steady cheque, of course that would be great for the company.” The only diamond deposit ever mined in North America is the Prairie Creek lamproite in Arkansas.

Meanwhile, exploration on SouthernEra’s 500,000 acres of ground east of the Dia Met-BHP discovery near Lac de Gras will be financed by a recently completed private placement of 800,000 shares at 50 cents. Jennings declined to comment on rumors of a second private placement of one million shares at $1.75 with a major mining company.

An expert in diamond exploration, Jennings said he staked the SouthernEra ground after investigating both government electromagnetic maps and the esker trains that were deposited by glaciers moving from east to west during the Ice Age. At least some of the diamond indicator minerals found in large concentrations in these eskers must be derived from kimberlite pipes on SouthernEra’s ground, he said.

SouthernEra will complete an airborne survey over its 400,000-acre claim block this summer and will check a smaller block on the ground. The junior company is also staking close to Yellowknife, N.W.T., where there are indications of another diamond field, Jennings said.

“I’m sure that 20 or 30 pipes are going to be found (around Lac de Gras). The spread of kimberlitic minerals is outstanding. It’s the largest train I’ve seen anywhere in the world.”