Archon unsuccessful at drilling targets in NWT

Dentonia Resources (DTA-V), a one-third owner of DHK Diamonds, reports that the first four of five airborne “Falcon” targets to be drill-tested by Archon Minerals (ACS-V) on the DHK and WI joint-venture claim blocks in the Northwest Territories are related to geological formations other than kimberlites.

The five high-priority targets, all of which are in the Lac de Gras area, were selected on the basis of an airborne gravity gradiometer Falcon survey flown last fall by BHP Diamonds. BHP’s proprietary survey identified 22 potential kimberlite targets. The targets ranged in size from 0.4 to 4 ha.

In light of the drilling results, the 22 targets have been re-assessed using stricter geological and geophysical perimeters, leaving 11 targets that remain to be tested.

The DHK and WI blocks are held 67.5% by DHK Diamonds, 22.5% by SouthernEra Resources (SUF-T) and 10% by Archon. BHP Diamonds, a division of BHP Billiton (BHP-N), can earn a 35% interest in any new kimberlite that is discovered as a result of its Falcon survey. BHP will have the option of increasing its interest to 51% by completing a 200-tonne mini-bulk test.

Archon is maintaining its 10% working interest in the joint venture by drill-testing the first five Falcon targets solely at its own cost. DHK and SouthernEra are required to contribute if any additional targets are tested.

DHK Diamonds is owned equally by Dentonia, Horseshoe Gold Mining (HSX-V) and Kettle River Resources (KRR-V).