Archangel uncovers more diamonds

Vancouver-based Archangel Diamond (AAD-V) has released encouraging results from hole 43 at the Verkhotina diamond project in Russia.

Although it is the fourth hole to intersect the 441 kimberlite pipe, No. 43 is the first to intersect the diatreme phase. The first three holes intersected only the crater facies, though hole 42 intersected what is thought to be a thin, high-grade weathered crust to the diatreme. The average grade of only the crater facies in the first three holes is 33 carats per 100 tonnes, or 0.33 carat per tonne.

Hole 43 intersected 127 metres of the crater facies starting at a depth of 71 metres before hitting kimberlite diatreme between 198 and 283 metres.

Processing for macrodiamonds only, the crater facies, which comprises bedded sandstones and tuffaceous breccias, returned 16 diamonds weighing 43.55 mg.

Two stones, taken from a 1,052.3-kg sample, measured 1-2 mm in at least one dimension. These results are believed to be equivalent to a grade of 21 carats per 100 tonnes, or 0.21 carat per tonne.

A 709.5-kg sample from the diatreme facies yielded 63 macros weighing 239.35 mg, including 11 stones measuring 1-2 mm and two stones measuring 2-4 mm. One of the larger stones weighed 0.54 carat. A preliminary grade for the diatreme is calculated at 169 carats per 100 tonnes, or 1.69 carats per tonne.

Delineation drilling on the pipe is continuing on an 80-metre grid. Hole 48 was recently completed, 160 metres west of hole 40, while hole 49 was drilled 160 metres west of hole 42. Both holes intersected crater facies at a 70-metre depth and the diatreme at roughly 200 metres before stopping in kimberlite at just over 300 metres.

The diatreme boundaries remain open in all but the eastern direction, and geophysical surveys suggest the pipe varies in size between 11 and 15 hectares.

Archangel holds a 40% interest in the Verkhotina joint venture, with the state entity Archangelskgeoldobycha holding a half interest and a private company holding the balance.

After carrying out a due diligence review, Archangel has decided not to proceed with the acquisition of Global Diamonds, a South African company that owns a half interest in an alluvial diamond deposit and the rights to acquire two other diamond properties.