Diamond explorers prepare for trek by winter road

Weather permitting, trucks carrying equipment and fuel destined for diamond exploration camps in the northern barrens will begin moving up the winter road that connects the Lupin gold mine to Yellowknife, N.W.T., by the end of the month.

According to a spokesman at the mine, the 400-mile-long ice road should open by February and remain operational until the end of March. Provided a set hauling fee is paid and Echo Bay’s mobilization schedule is complied with, anyone is welcome to use the road, he said.

Companies reporting plans to drill geophysical/geochemical diamond targets in the Lac de Gras area this winter and spring include:

— The Aber-Commonwealth-SouthernEra consortium, financed by Kennecott Canada. The group plans to set up at least two base camps near Lac de Gras this winter in preparation for a 30-target drill program expected to get under way in late March on its Tenby properties.

n DHK Resources, also financed by Kennecott. Dentonia Resources (VSE), with a 33.3% stake in DHK, said in a recent quarterly report that drilling will likely begin in March on its 230,000 acres of ground. Two of its geophysical targets, including one twin-pipe-like anomaly, have significant down-ice indicator mineral concentrations.

— Dia Met Minerals (TSE) and BHP Minerals Canada. The partners have announced plans to bulk test at least two more pipes this winter, after recovering diamonds from nine targets drilled last summer. Rumors abound that the group plans to move its diamond recovery plant from Fort Collins, Colo., to Lac de Gras for the work.

— Fibre Klad Industries (ASE) and Tanqueray Resources (ASE). Although said to be having “internal problems” that are causing a delay, Mill City Gold Mining (ASE) is expected to drill the Fibre Klad-Tanqueray property on Yamba Lake under a yet-to-be-finalized option agreement.

— Lytton Minerals (TSE). President Desmond Alexander says the company intends to start drilling “as soon as possible” on six targets identified on its 100% owned property northwest of Lac de Gras. He says the company will concentrate on a 20-km-long area of interest stretching across the centre of the property.

— Tyler Resources (TSE). Financed by major shareholder Golden Rule Resources (TSE), Tyler plans to drill eight targets on its Carat and Crystal properties in March.

The drilling programs promise to be expensive, high-risk endeavors. Worldwide, about one in five kimberlite intrusions carry diamonds and about one in 100 are considered to be economic.

“When this field season ends and the cores have been analyzed, we will know the great from the not-so-great diamond explorationists,” remarks Dominick and Dominick’s John Eidt in a research report.

Most of the companies mentioned above are awaiting results of outstanding till and esker samples taken last summer. The huge demand for sample analysis has created a bottleneck at the few laboratories available for the work. In other diamond developments:

NWT

— Minerais Barexor (ME) has reached an agreement with Consolidated Cove Resources (VSE) whereby Cove can acquire a 50% interest in one claim group near Aylmer Lake. The agreement calls for a cash payment of $30,000, 200,000 shares and a $450,000 work commitment over three years.

— Caledonia Mining (TSE) is optioning a 50% interest in the diamond rights on the Dunvegan claims, a 23,000-acre claim block near Winter Lake, west of Lac de Gras. Geophysical and geochemical results from a previous exploration program for other minerals will be re-examined for kimberlite targets. Alberta

The amount of ground covered by mineral permit applications continues to grow daily, and is said to be approaching the 60-million-acre mark. Applicants are required to pay a licensing fee of 2 cents per acre.

Saskatchewan

— Aaron Oil (ASE) reports the private placement of 320,000 flow-through shares at 80 cents per share. Proceeds will be used to drill two development oil wells and Aaron’s diamond properties near Sturgeon Lake and Fort a la Corne, Sask.

Ontario

— Goldhunter Explorations (ASE) and Strike Minerals (CDN) have jointly optioned the Morrisette Creek East kimberlite property near Kirkland Lake in exchange for 50,000 shares, $15,000 and expenditures of $60,000 by January, 1995. In partnership with Sharpe Energy and Resources (VSE), Goldhunter has also purchased the Morrisette Creek West kimberlite property for $5,000, 25,000 Sharpe shares and 25,000 Goldhunter shares.

— Regal Goldfields (CAN) has entered into an agreement to purchase James E. Tilsley and Associates’ 10% interest in the diamond-bearing C-14 pipe near in Clifford Twp. for 160,000 Regal shares. KWG Resources (ME) must spend $700,000 on the pipe before the end of February and another $1.3 million before Feb. 28, 1994, under an option to earn a 50% interest in the C-14. Regal now has a 100% interest in the C-14, subject to Dia Met’s 2.5% royalty on gross sales.

Arkansas

— Texas Star Resources (VSE) says it is acquiring all of the outstanding shares of Diamond Exploration Inc. (DEI). DEI has a 30% interest in Continental Diamonds, which, in turn, is part of the consortium exploring the Crater of Diamonds state park in Arkansas.

DEI also has exclusive interests in three other nearby properties, including the Kimberlite mine, the American mine and the Twin Knobs I property. Of the three million Texas Star shares to be issued to DEI shareholders, 1.5 million will be held in escrow and released at a rate of 500,000 shares for every US$1 million spent by Texas Star on the properties.

The Parks, Recreation and Travel Commission in Arkanas says it will decide by March whether testing should proceed at the Crater of Diamonds. Having outlined an estimated lamproite resource of about 78 million tons, the consortium would like to complete further work to determine the quantity and quality of the diamonds.

If Texas Star’s acquisition of DEI is successful, the Houston-based junior will have a 100% interest in Continental Diamonds. By paying Texas Star double its exploration expenditures at the final feasibility stage, Continental Precious Minerals (ME) can repurchase a 25% interest in Texas Star’s stake in the Crater of Diamonds project and a 10% interest in other projects in the state.