Greenland yields diamond discovery for Platinova A/S

A recent diamond discovery in western Greenland will be followed up with a $6.5-million exploration program over the next year.

Toronto-based Platinova A/S (PAS-T) recovered the clear, white stone while processing a 34-kg composite sample of kimberlite boulders collected on the edge of a lake.

The junior says the microdiamond, which measures 0.28 mm on all sides, is the first to be found in a rock sample from the area.

“This is a good indicator that we may well be in the right part of the world for diamond exploration,” says Erik Anderson, Platinova’s managing director.

The company has optioned parcels of its extensive holdings in the area to three farm-in partners: Ellios Resources (EOR-V), Aber Resources (ABZ-T) and Lexam Explorations (LEX-M). Collectively, these companies will spend $6.5 million on exploration before the end of next year.

In each case, the farm-in partner can earn a half interest by bulk-sampling a kimberlite pipe or completing 10,000 metres of drilling.

Platinova has retained full ownership (subject to a 3% production royalty for Cominco [CLT-T]) of a 4,300-sq.-km parcel crossed by kimberlite dykes. This ground, which includes the discovery area, covers the thickest section of Archean terrain.

Its location on a stable, Precambrian craton (similar to the one underlying the diamond fields of the Northwest Territories) renders Greenland prime hunting ground for diamonds. Indeed, kimberlite and lamproite swarms are known to occur in the Archean rocks of western Greenland, and diamonds have been found in stream sediments.

With this information in hand, Platinova acquired the diamond rights to a 33,000-sq.-km band of property hugging the coast of western Greenland earlier this year. Kimberlite dykes are known to occur on the land package, though none has yielded any diamonds.

Platinova then optioned most of the ground to the other juniors, which launched a regional exploration program. During the summer, the partners collected about 636 till samples and completed airborne surveys on the Aber, Ellios and Lexam blocks.

The diamond-bearing kimberlite boulder, which lies on the border of Platinova’s wholly owned parcel and a block held by Quadrant Resources of Australia, was found as a result of photo interpretation and geophysical work.

Platinova says drill targets to find the source of the diamond will be selected once the results of the summer’s surveys are available.