Investors await diamond evaluation

Although BHP-Utah Mines (TSE) won’t say when it plans to release an evaluation of diamonds taken from the Point Lake kimberlite in the Northwest Territories, Dia Met Minerals (VSE) is expected to have a lot of angry shareholders on its hands if the results aren’t available by the junior’s annual meeting June 26.

Analysts hope the senior company will release enough information — including color, clarity and weight — to allow gemologists to attach a dollar figure to the diamonds. But a statistically representative sample of at least 10,000 tons of material would have to be processed before BHP-Utah could be expected to do the same, they say.

Since the partners announced that a total of at least 90 carats had been extracted from 160 tons of crushed rock last month, questions have been raised about the final weight of what was originally meant to be a 200-ton sample. James Eccott, president of Dia Met, said the lost 40 tons is made up of lake sediments left behind when the crushed kimberlite was sent to Colorado for processing.

But one analyst noted that because the sample was wet when placed on the scales, the actual weight must have been substantially less than 160 tons. This would imply that the bulk sample’s grade is higher than the 56-carat-per-100-ton figure used by analysts lately to compare the Point Lake pipe to producing pipes in other countries.

Meanwhile, junior companies continue to stream into the Northwest Territories in anticipation of further good news from the Dia Met property. Trump Reserve Minerals (ASE) has acquired the right to earn a 75% interest in at least 25,000 acres by paying $25,000 cash and spending $500,000 over four years. Trump says the property, 40 miles southeast of the discovery, contains magnetic features which could represent kimberlite pipes.

Pure Gold Resources (TSE) and Koala Resources (VSE) plan to complete an airborne survey over their claim block east of the discovery after Pure Gold acquired a 50% interest in 51,650 acres. Pure Gold is also expecting to see airborne results from the claim block it shares with Aber Resources (TSE) by July 1.

About 25 miles southwest of the discovery, Consolidated Newgate Resources (VSE) has agreed to acquire a 50% interest in 46,000 acres owned by Winspear Resources (VSE). The first year’s work commitment is $200,000, with a total of $1.5 million to be spent over five years. Newgate says an airborne magnetic survey over the property will begin in mid-July.

De Beers subsidiary Monopros, which already holds more than 2.7 million acres in the area, is rumored to be still actively staking south of the discovery pipe.

Some companies are also taking a second look at diamond prospects near Prince Albert, Sask. A spokesman for Rio Algom (TSE) said the company has been staking in the province, but would not confirm rumors that Rio has tied up 56,960 acres southeast of the kimberlite field that has so far yielded 160 microdiamonds for partners Uranerz Exploration and Mining and Cameco (TSE). Through its parent RTZ, Rio Algom is associated with the Argyle mine in Australia, the world’s largest diamond producer.

Peter Gummer, former vice-president of exploration for Claude Resources (TSE), reports that his company, Rhonda Mining (ASE), has acquired 74,000 acres of claims that Claude has allowed to lapse near Prince Albert. Geophysical and geological evidence indicates that the source of diamond-bearing kimberlite occurrences in the area lies on Rhonda’s ground, says Gummer.

Near Sturgeon Lake, Sask., a drilling program is planned by Calgary-based Aaron Oil (ASE).