DIAMOND NEWS ROUNDUP — Positive results from Diavik play

Processing of drill core from two large-diameter holes on the A-154 South kimberlite pipe at the Diavik project has returned high diamond weights. The project is situated near Lac de Gras, N.W.T.

Kennecott processed 7.4 tonnes from hole LDC-01 and 5.3 tonnes from hole LDC-2 at its diamond recovery plant in Yellowknife. The company has a 60% interest in the venture, with Aber Resources (TSE) holding the balance. A total of 35.7 carats were recovered from LDC-01 for an average grade of 4.8 carats per tonne. Hole LDC-02, which was drilled about 50 metres away, returned 25.7 carats for an average of 4.8 carats per tonne. The grades compare well with those released from the nearby N.W.T. Diamonds project owned by BHP Diamonds and Dia Met Minerals. The best grade from bulk sampling at BHP’s project was 3.3 carats per tonne from a 133-tonne sample recovered by large-diameter drilling on the Misery pipe.

However, much work remains to be done on the A-154 pipe before it reaches the same stage as Misery.

Further details with respect to grade, value per carat and resource size will be available only after a large bulk sample is taken.

Kennecott has two large-diameter coring rigs conducting bulk sampling on the A-154 North and South pipes, while a third machine works on delineation drilling.

The joint venture expects to receive the results from delineation drilling and caustic fusion analysis on the project’s A-21 pipe by the end of March. Subject to positive results, a small bulk sample will be extracted from the pipe using large-diameter coring.

Ontario

* Currie Rose Resources (VSE) is planning to explore its holdings in the Wawa area. Sampling by the Ontario Geological Survey on the Currie Rose property encountered several kimberlite indicator minerals.

Overseas

* Seven additional kimberlites have been intersected by drilling on Southern Africa Minerals’ (ASE) Molopo project in Botswana. The company previously reported that drilling had encountered 11 pipes.

Additional drilling is under way, and samples from the various pipes encountered have been sent to a South African lab for processing. Results are expected later this month.