De Beers out, Monopros still active

Although multinational De Beers Consolidated Mines has dropped its option to earn a 60% interest in the Yamba Lake joint venture in the Lac de Gras region of the Northwest Territories, its wholly owned exploration subsidiary, Monopros, is funding a $1-million program on properties held by the Slave Diamond Syndicate near Great Slave Lake.

Gerle Gold, which, at 40%, has the largest stake in the syndicate, is operating the program under the guidance of Monopros. Drilling has begun on 16 planned targets, and more than 100 additional targets are expected to be evaluated. Three other companies are involved, each of which holds a 20% interest: Norcal Resources (VSE), Tenajon Resources (VSE) and Westley Technologies (TSE). Monopros can earn a 60% interest by spending $7 million over three years.

De Beers’ decision to cancel its Yamba Lake option, as reported by joint-venture partners Mill City Gold Mining (VSE) and Tanqueray Resources (TSE), was based on the results of geochemical sampling and airborne geophysical surveys. The South African mining giant became involved last July, shortly before results were released of a mini-bulk sample taken from the 1.5-hectare Torrie pipe. Only 19 diamonds, weighing an aggregate 0.635 carats, were recovered from a 24.5-tonne bulk sample. Adding to the disappointment was that a 27.8-kg sample of the Ptarmigan pipe returned no diamonds.

A subsequent exploration program by De Beers included the drilling of six targets. However, seven holes, totalling 1,070 metres, failed to intersect any kimberlites.

Overseas

* Redaurum (TSE) will acquire Quaggas Kop, an operating alluvial diamond property 170 miles north of Cape Town, South Africa.

The purchase includes a 600-hectare mining lease and a 2-year prospecting permit on 4,300 hectares on the adjoining downstream property. In addition, the company will receive all mining and production equipment. Based on sale prices obtained from recent production, current diamond resources on the mining lease are estimated at $12 million. The largest diamond recovered from the licence was 16.9 carats.

An additional probable reserve, which extends over 243 hectares of the mining lease, is being evaluated, and yet another reserve is expected from the downstream prospecting permit.

Redaurum plans to upgrade the operating plant in order to increase annual diamond sales to $3.5 million from $500,000 by the end of 1996. The acquisition is expected to take up to 90 days, with the purchase price of $460,000 being made in staged payments.