Archon Minerals to drill Falcon targets in Northwest Territories

Vancouver-based Archon Minerals (ACS-V) has confirmed its intention to drill-test airborne targets on the DHK and WI joint-venture claim blocks in the Lac de Gras area of the Northwest Territories.

BHP Diamonds, a division of Australia-based BHP (BHP-N), identified 22 potential kimberlite targets on the two claim blocks after flying a proprietary airborne gravity gradiometer “Falcon” survey last fall. The survey also collected data relating to high-resolution aeromagnetics and radiometrics. In addition, Archon re-interpreted earlier geophysical data that were made available by Kennecott Canada Exploration.

The gravity anomalies have been selected on the basis of size, intensity, topographic expression, and the presence of kimberlite indicator minerals and/or coincident electromagnetic and magnetic anomalies. Three of the targets (all on the DHK block) are classified as first-priority, whereas six others are regarded as second-priority.

The boundaries of the DHK and WI blocks are adjacent to the southern outer edge of the Ekati diamond mine’s Buffer zone. The two properties cover 283 sq. km and host four pipes that are known to be diamondiferous.

BHP Diamonds can earn a 35% if joint-venture partners DHK Diamonds, Archon and SouthernEra Resources (SUF-T) discover a new kimberlite on the basis of BHP’s work. BHP will have the option to earn a further 16% by bulk-sampling any new pipes that are discovered.

Archon can maintain its 10% working interest in the joint venture by drill-testing the first five Falcon targets, whereas DHK Diamonds and SouthernEra will maintain their respective interests of 29.25% and 9.75% by contributing proportionately after the first five targets are tested.

DHK Diamonds is owned equally by Dentonia Resources (DTA-V), Horseshoe Gold Mining (HSX-V) and Kettle River Resources (KRR-V). The partners plan to take DHK Diamonds public, at which point Kennecott would receive at 9.9% equity interest in DHK in return for transferring to the junior its 40% interest in the WO, DHK and WI property blocks and a 100% interest in the Pellat Lake claims.

If DHK fails to go public by Aug. 11, 2001, Kennecott will acquire a 40% stake in DHK.

In related news, BHP has flown the Falcon survey over Thundelarra Exploration‘s (TLX-V) Phillips Range diamond project in the Kimberley region of Western Australia. The project hosts the diamond-bearing Aries pipe, which, at 18 ha, is one of the largest kimberlites discovered in Australia.

BHP can earn a 60% interest in the project by carrying Thundelarra to completion of a feasibility study. Results from the Falcon survey are expected before May.