The companys stock recently reached a new high of $2.35 before falling back to $1.85, compared with a 52-week low of 15 cents. Although Sudbury Contact declined to comment on the exact location of the diamond-bearing kimberlite pipe, the Diamond Lake property straddles the convergence of Gauthier, McVittie, McElroy and Hearst twps.
The find brings to 14 the number of diamonds recovered from three holes drilled on the Diamond Lake kimberlite pipe last winter. Sudbury Contact says six of the 14, or 43%, are of gem quality.
To be awarded the “gem” designation, diamonds must be clear or only slightly tinted. Other factors that determine value include size and color. The diamonds found in the juniors pipe are less than
0.45 mm in diameter.
Other diamond players in the Kirkland Lake area also moved on the Sudbury Contact announcement. Regal Goldfields, (CDN) owner of a diamondiferous pipe in
Clifford Twp., jumped 10 cents to $2.10. Wheaton River Minerals (TSE), which recently announced plans to explore for diamonds on ground optioned from Glencairn Explorations (ASE) and Strike Minerals (CDN), gained 8 cents to 43 cents. With exploration plans for Ebby Twp., Greater Lenora Resources (TSE) edged up to 75 cents in a 52-week range of 41 cents-$1
Sudbury Contact has resumed drilling on eight “promising” targets near the discovery. The holes, expected to be completed by mid-July, will be drilled to an average depth of 150 metres. More results may be available before the company’s annual meeting on June 19.
President Paul Penna said the company would also be launching airborne electromagnetic surveys and ground geophysics over the 16,740 hectares the company holds in 10 townships stretching to the Quebec border. This target generation is expected to be completed by early September.
Mentor Exploration and Development (TSE), 49.5% owned by Agnico-Eagle Mines (TSE), owns 45% of Sudbury Contact.
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