Dia Met estimates diamond `resource’

A report accompanying an application by Dia Met Minerals (TSE) for listing on The Toronto Stock Exchange reveals that an estimated 80 million tons grading 63 carats per 100 tons have been outlined within two separate kimberlite pipes at the company’s Point Lake target in the Northwest Territories.

The “resource” estimation, calculated to a depth of 720 ft., is based on the results of 37 vertical rotary holes drilled into the carrot-shaped intrusions last summer. The holes, spaced 160-320 ft. apart, were terminated at the kimberlite-country rock boundary or at a vertical depth of 720 ft., whichever came first.

Dia Met, which was listed on the TSE in November, also revealed that its partner, BHP Minerals Canada, has budgeted US$2 million for exploration at Lac de Gras for the year ending May 31, 1993. The budget includes plans to drill up to 20 coreholes and take about 500 follow-up till and esker samples. BHP is earning a 51% interest in Dia Met’s Northwest Territories claims by financing all exploration and completing a feasibility study. The remaining 49% will be shared by Dia Met (29%), Dia Met President Charles Fipke (10%) and Stewart Blusson (10%).

In Saskatchewan, partners Aaron Oil (ASE) and Rhonda Mining (ASE) have intersected a kimberlite-sedimentary sequence on their properties at Sturgeon Lake.

A 3-hole rotary drill program encompassing some 2,000 acres intersected the sequence over intervals of up to 25 ft. Rhonda says the find represents the bedrock source of a diamond-bearing ice raft sampled by Monopros in the late 1980s. The areal extent of the intersections suggests the whole kimberlite system may have been preserved with little or no erosion.

Two of the holes were drilled on ground optioned from Claude Resources (TSE) and Celtic Gold.

Aaron and Rhonda have increased their landholdings in Saskatchewan to 1.5 million acres. Some of the ground is held in a consortium with Guardian Resource (VSE), Mountain Province Mining (VSE) and Pallaum Minerals (ASE). Sources say a joint venture consisting of Cameco (TSE), Uranerz Exploration and Mining and Monopros have completed a bulk-sampling program at the nearby Fort a la Corne pipes.

Aaron has also expanded its landholdings in the Lac de Gas area by acquiring a 50% stake in 42,697 acres on the southwest shore of Clinton-Colden Lake. Aaron’s joint venture partner is Leeward Capital (VSE).

In other diamond developments:

— Drilling is under way on Sudbury Contact Mines’ (CDN) properties near Kirkland Lake, Ont. The Agnico-Eagle Mines (TSE) affiliate has two rigs turning, one on the Diamond Lake property and another to the north, and expects to complete the program by mid-December. The bulk sample taken from Sudbury’s second kimberlite pipe (T.N.M., Sept. 14/92) did not contain any diamonds.

— Dolly Varden Minerals (VSE) has changed its name to New Dolly Varden Minerals and consolidated its shares on a 5-for-1 basis. Dolly Varden, with 2.45 million shares now outstanding, holds 226,580 acres north of Lac de Gras. — Geomaque Explorations (CDN) intends to acquire full control of a numbered Ontario company that has 30,000 acres under option to Kennecott southwest of Lac de Gras and an additional 50,000 acres to the east. Geomaque currently holds a 17% interest in 997517 Ontario.

— Under an agreement with Continental Precious Minerals (ME), Texas Star Resources (VSE) has acquired 70% of Continental Diamonds, which holds a 25% stake in the Crater of Diamonds prospect in Arkansas. By issuing 250,000 shares, Texas Star has also acquired a 24.5% interest in a joint venture with Continental and BP Resources Canada to explore for diamonds in Ontario and Manitoba.

Texas Star, which has been granted a warrant to purchase 500,000 shares of Continental at $1.50, has raised $500,000 through a private placement of units consisting of one debenture and one non-transferable share. — Work has started on United Reef Petroleums’ (TSE) diamond concession in the Bamingui region of the Central African Republic and applications for additional ground have been made.

United is earning a 60% interest in the property from Ateba Mines (TSE), which plans to reactivate. Ateba will settle its $3.06-million debt by issuing common shares and warrants and transferring its interest in the Magnet mine to Beaurox Mines. Canhorn Mining (TSE) has a 6.8% interest in United Reef.

— Subject to regulatory and shareholder approval, Wye Resources (CDN) has acquired a 50% interest in a 12.4-square-mile alluvial diamond property in Zaire, a few miles from the Angolan border. Wye says preliminary tests on the joint venture property suggest that the alluvial gravels contain gem-quality diamonds. The junior purchased the interest from a group of investors in Dallas in exchange for two million treasury shares.

— Golden Marlin Resources (VSE) has optioned its Lucky 7 diamond property in southern Alberta, where two diamonds were discovered during reconnaissance sampling, to SouthernEra Resources (TSE). SouthernEra will earn a 25% interest in the 23,000-acre property by making a cash payment. If the option is exercised, the property will be a 25%-25%-50% joint venture of Golden Marlin, SouthernEra and the Western Shield Prospecting Syndicate and be subject to a 2.5% prospectors royalty.

— Gwen Resources (ASE) has boosted its landholdings near Kirkland Lake, Ont., to 39,440 acres by acquiring an additional 16,000 acres. Gwen is also acquiring diamond properties in Alberta.