More about diamonds (December 21, 1992)

Canadian mining exploration companies are involved in the search for diamonds both at home and abroad:

N.W.T. and Alberta Golden Rule Resources (TSE) has acquired 2.38 million units of Lac de Gras explorer Tyler Resources (TSE) for 21 cents per unit. The units consist of one common share and one warrant exercisable at 25 cents for two years. Hixon Gold Resources (VSE) has taken a 33% interest in the Western Shield Prospecting Syndicate, a group involved in diamond property acquisition and exploration in Western Canada. The other two participants are SouthernEra Resources (TSE) and Golden Marlin Resources (VSE). To date, the syndicate has acquired more than 50 properties, including the 23,000-acre Lucky 7 property in southeastern Alberta.

Northeastern Ontario

Wheaton River Minerals plans to take a 200-kg sample from its Morrissette Creek kimberlite pipe near Kirkland Lake. To earn a 49% interest in the property, Wheaton must spend $200,000 and issue 100,000 shares to a private company by the end of 1993.

Wheaton’s major shareholder, Glencairn Explorations (ASE), also plans to begin drilling on its Alfie Creek property near Kirkland Lake. Anomalous values of chromium, nickel and cobalt, which can be kimberlite indicators, have been found on the property. The geochemical anomaly is coincident with a magnetic anomaly thought to represent kimberlite.

Holmer Gold Mines (ASE) has acquired a 100% interest in two parcels of land totalling 720 acres in McElroy and Skead twps.

The vendor holds a 10% carried interest in the properties which Holmer can repurchase. Breccia pipes are known to outcrop on the property. Cross Lake Minerals (VSE) has purchased a property north of Timmins, Ont., covering an ultramafic body with elevated platinum values of up to 0.2 grams per tonne. The property is thought to have diamond potential. Saskatchewan

Aaron Oil (ASE) and Rhonda Mining (ASE) have staked an additional 350,000 acres in the Sturgeon Lake and Fort a La Corne diamond camps. Overseas

United Reef Petroleums (TSE) has reached an agreement to settle a $1.5-million debt owed to Canhorn Mining (TSE), its major shareholder. The debt will be forgiven in exchange for a royalty based on production from United Reef’s Bamingui-Bangoran property in the Central African Republic. The royalty would be payable to Canhorn at a rate of $3 per carat until Canhorn has received a maximum of $3 million.

In early February, partners Stow Resources (VSE), Dryden Resource (VSE) and SouthernEra Resources (TSE) will launch a $2-million, second-phase evaluation program at the Leicester diamond mine in South Africa. To handle an 80,000-tonne bulk sample with 90% recovery, the partners will need to purchase and construct a more sophisticated diamond recovery plant. About one-third of the current 10,000-tonne bulk sample has been processed with encouraging recovery of diamonds one carat and larger.