Diamond exploration heats up in Manitoba

An area of northeastern Manitoba, between Lake Winnipeg and Hudson Bay, has been quietly garnering the attention of the major diamond explorers, including De Beers Consolidated Mines (DBRSY-Q), BHP (BHP-N) and Rio Tinto (RTP-N).

The Canadian subsidiaries of these three majors hold exploration permits covering some 16,000 sq. km of ground in the vicinity of Knee Lake and Fox River. The area is underlain by the Pikwitonei and Gods Lake Domains of the northern Superior Province. De Beers’ recent bulk-sampling of the Victor pipes in the Attawapiskat region of northern Ontario highlights the diamond potential of the Superior Craton, which extends into both Quebec and Manitoba.

In 1996, the Manitoba Geological Survey began a 5-year multi-media sampling program in the northeastern part of the province. Under this program, known as Operation Superior, several kimberlite indicator minerals were recovered from till samples collected in 1996 and 1999.

Throughout much of the 1990s, it was rumoured that major diamond-producing companies were conducting large-scale sampling programs in northeastern Manitoba. However, it was not until April 1999 that Indicator Minerals became the first party to acquire an exploration permit specifically for diamonds in this area. Since then, 48 permits totalling more than 19,000 sq. km have been acquired by eight parties. This includes approximately 9,700 sq. km held by De Beers Exploration Canada, 4,700 sq. km held by Kennecott Canada Exploration and 2,300 sq. km held by BHP Minerals Canada.

Indicator Minerals is a private company headed by John Lee, a geologist who has 15 years of experience in diamond exploration with Falconbridge.

The junior has four permit areas totalling 422 sq. km and 30 claims covering 45 sq. km available for option. The claims have all been staked over lakes. The four permits and seven of the claims are all in the Knee Lake-Fox River area, where Indicator has already optioned three other permits to a major company.

Lee says preliminary, widely spaced sampling in 2000 on permit 173 and special permits 99-6 and 2000-3 yielded the “usual assortment” of kimberlite indicator minerals, including G9 garnets, some G10s, ilmenites and chrome diopsides.

Indicator Minerals also holds 23 claims about 100 km southwest of the main area of activity. The Lawford Lake claims were staked up-ice from the Echimamish River kimberlite indicator mineral anomaly, which was defined by the Manitoba government’s 1996 sampling program. De Beers has acquired two large parcels of ground in the immediate area.

Kennecott, a wholly owned division of Rio Tinto, and Montello Resources (MEO-V) have been exploring for diamonds in Manitoba for the past two seasons under the Poplar joint venture. Kennecott is the manager and holds a 60% interest. Montello owns the remaining 40%.

Based on the more than 400 glacial till samples taken over the 2-year period, the joint venture applied for two packages of ground in the Knee Lake-Fox River area. Montello says each of the land packages covers separate and isolated kimberlite indicator mineral anomalies.

The indicator minerals include pyrope garnets, chromites, chrome diopsides, foseritic olivines and ilmenites. Many of the indicator minerals are said to display diamond inclusion chemistries.

The joint venture has committed to an airborne geophysical survey over a large portion of its holdings.

Toronto-based Iriana Resources (IR-T) made its first mineral property acquisition outside of Indonesia in November by acquiring a 60% interest in a 444-sq.-km property in the Knee Lake-Fox River area. The property borders on, and is surrounded by, the large land holdings of De Beers, BHP and Kennecott. Troymin Resources (TYR-V) and ManQuest Resources each hold a 20% interest.

Iriana has since acquired a 100% interest in a second property, covering 500 sq. km. It is situated a further 40 km to the northeast.