AK claims yield more diamonds (September 20, 2001)

A total of 1,665 carats of diamond have been recovered from sample concentrates derived from the Hearne and 5034 kimberlite pipes on the AK claims in the Canada’s Northwest Territories.

A total of 334 tonnes of kimberlite were recovered from three holes on the high-grade northern part of the Hearne pipe. The sample yielded 751 carats. About 27 of the diamonds exceed 1 carat, another 74 stones lie between 0.5 and 1 carat. The two largest diamonds weigh in at 3.4 and 3.1 carats, respectively. The three holes average 2.25 carats per tonne. A previously modeled grade for this phase of kimberlite was 2.05 carats per tonne.

A 635-tonne sample of kimberlite was also collected from four holes on the eastern lobe of the 5034 pipe. The sample surrendered 914 carats. About 34 diamonds weigh more than a carat. Another 104 stones fall between 0.5 and 1 carat. The two largest stones weigh in at 9.9 and 4.5 carats. Two of the holes came close to the modelled grade of 1.7 carats per tonne; the other two came in slightly lower.

With the addition of the new stones, the number of diamonds available for valuation from the pipes has nearly doubled, which should produce a more reliable model of per-carat value. Valuation is underway at the Diamond Trading Co. in London. The new per-carat modeled values will be factored into an updated desktop study.

In August, an initial desktop study indicated that a 15% increase in diamond revenues was needed to proceed to the feasibility stage. The study proposed open-pit mining on the 5034 and Hearne pipes, and for a high-grade zone in the top 140 metres of the Tuzo pipe.

The Hearne and 5034 kimberlite pipes represent the most promising of five diamondiferous bodies located in the Kennady Lake portion of the claims.

The AK claims are held 44.1% by Mountain Province Diamonds (MPV-T), 4.9% by Camphor Ventures (CFV-V) and 51% by De Beers Canada. The major diamond producer has the right to earn up to a 60% interest in the property by taking the project to commercial production.