DIAMOND NEWS ROUNDUP — Additional AK results consistent with earlier values

The latest results from the discovery hole on the AK property in the Northwest Territories are consistent with, but somewhat lower than, initial results released in early April.

Partners Mountain Province Mining (VSE), Glenmore Highlands (ASE) and Camphor Ventures (VSE), which hold 50%, 40% and 10% interests respectively, have so far drilled 16 delineation holes into the 5034 pipe.

The new results are based on the processing of an additional 121.02 kg of core from the discovery hole, which returned 119 macrodiamonds and 587 micros.

This raises the count to 9.83 macros or 58.34 diamonds in total per 10 kg, compared with the previously released 63.45-kg sample which returned 27.78 macros or 155.84 diamonds in total per 10 kg.

Eighty per cent of the diamonds are clear and of gem-like quality.

Drill core from the 16 delineation holes is being logged and prepared for processing. And one of the holes, 100 metres northwest of the discovery hole, contains a visibly clear diamond measuring just over 3 mm across its exposed dimension in the core.

Delineation drilling is continuing and additional results from the discovery hole, as well as from delineation holes, will be released when available.

The companies expect to drill-test additional kimberlite targets this spring.

Elsewhere in the Northwest Territories

* Excitement over the 5034 discovery is prompting other companies with holdings in the area to announce exploration plans. About 19 km north of the pipe, partners Kennecott, SouthernEra Resources (TSE) and Kalahari Resources (VSE) expect to drill-test 8-12 targets on their Back Lake joint venture.

* Meanwhile, drilling is planned on the Misty Lake project, where seven new targets have been identified within 5 km of the southern boundary of AK property.

Currently under way is a $450,000 program aimed at drill-testing at least 10 priority targets.

The International Diamond Syndicate, in a 40-60 joint venture with Major General Resources (VSE), can earn a 40% interest in Misty Lake from SouthernEra by spending $2.5 million.

Ownership in the Syndicate is shared 40% by Teryl Resources (VSE), 40% by Calco Resources (VSE) and 20% by Agate Bay Resources (VSE).

* Drilling is also under way to the west of the AK project, at the Camsell Lake property. Partners Aber Resources (TSE), Winspear Resources (VSE), Amarado Resources (VSE) and Consolidated Newgate Resources (VSE), which have 40%, 30%, 20% and 10% interests respectively, report that hole 95-2 has intersected kimberlite.

The hole is 150 metres northwest of the CL-25 pipe, which was discovered last fall. Last year, two holes were drilled on CL-25, with the best of these returning 7 macrodiamonds and 156 micros from 238.8 kg.

Drill core from 95-2 is being shipped for analysis, and more holes are expected to be drilled on several nearby targets.

* United Compass Resources (VSE) has acquired 37.5% of Lucero Resource’s (VSE) 50% option on the MacKay Lake property near Lac de Gras. Adex Mining (TSE) holds the remaining half interest.

A geophysical survey over the property identified seven priority drill targets.

* Joint-venture partners Tanqueray Resources (ASE), Mill City Gold Mining (ASE), Almaden Resources (VSE) and Williams Creek Resources (VSE) have acquired a 100% interest in a 37,255-hectare claim block near Cook Lake, 30 km southeast of the Mountain Province find.

The claim block adjoins the companies’ 58,977-hectare block acquired in April, and raises to 96,232 the total number of hectares held contiguously. Tanqueray has a 40% interest, Mill City 30%, Almaden 15% and Williams Creek 15%.

* Drilling by Trade Winds Resources (VSE) continues to delineate the Drybones Bay kimberlite pipe.

Hole 95-7, drilled in the centre of the intrusion, recovered 166 metres of uniform diatreme facies. Based on a visual inspection, the company believes a new phase of the pipe may have been intersected. Hole 95-8 was stepped out 250 metres to the east and returned 121 metres of kimberlite. The western margin of the pipe was tested by hole 95-9, recovering 66 metres of kimberlite.

Trade Winds is earning an 80% interest in the property, which is situated 50 km southeast of Yellowknife.

* The source of a large indicator mineral anomaly on the ATW property, near Lac de Gras, continues to elude Kennecott Canada.

The company drill-tested the TR107 kimberlite pipe with an additional single hole but failed to return anything diamondiferous. Drilling of the TR111 anomaly determined the source to be a broken graphite horizon, while further evaluation of the TR106 anomaly indicated the cause to be metasediments.

A high-sense magnetic survey was recently carried out to aid in interpretation, and Kennecott plans to trace the indicator mineral train with a reverse-circulation drill.

Kennecott holds a 40% interest in the property, while Aber Resources holds 15% and SouthernEra, 10%. The remaining 35% is held by ATW Resources, a Territorial corporation owned 40% by Almaden, 20% by Troymin Resources (ASE) and 40% by Williams Creek.

* Exploration work is being carried out on the Back River property of Chapleau Resources (VSE).

Ground geophysics is following up 14 targets identified from an airborne magnetometer survey. The company has delineated 10 targets for drilling.

Chapleau can earn a 75% interest by spending a further $1.25 million by the end of 1996, and it holds the right of first refusal for the remaining 25% held by a private company.

* Star Dance Resources (VSE) can earn a half interest in 28,800 hectares held by Super Twins Resources (VSE) in the Lac de Gras region.

The agreement calls for expenditures of $450,000 over three years. The focus for the upcoming field season will be several targets outlined in a 1993 airborne geophysical survey.

Quebec

* A work program is to begin shortly on a land package in the Montreal area. The properties comprise 23,600 hectares and will be held by a joint venture involving Noront Resources (VSE) and Pure Gold Resources (TSE).

Pure Gold may earn a 50% undivided interest by refunding a portion of costs previously spent on the properties, and by funding this year’s program.

Previous exploration identified three crustal fractures, along which 15 known diamondiferous kimberlites and lamproites were sampled and traced along its trend. Some of the diamonds from this region are included in a national mineral collection in Ottawa.

This year’s program will include ground geophysics and diamond drilling.

Finland

* Australia’s Ashton Mining expects to discover more diamond-bearing pipes during its secretive exploration near the Arctic Circle in Finland.

Chief Executive Officer John Robinson says he expects to make a decision on going ahead with a full feasibility study in Finland, where Ashton has been prospecting for eight years, by the end of the year, Agence France Presse reports.

The company, which holds 100% equity in the project through its subsidiary Malmikaivos Oy, expects to discover additional bodies during the next 12 months, Robinson said.

To date, four of the 22 kimberlite pipes discovered have been found to possess grade combinations that suggest commercial potential, he said.

In its quarterly report, the company said samples aggregating 7 tonnes collected from three holes in Pipe 21 yielded 62 diamonds larger than 0.8 mm. The pipe’s location has not been revealed.

* Toronto-based Caledonia Mining (TSE) has been granted 199 claim reservations in Finland, which it plans to explore for diamonds. The areas were chosen in 1994, after interpretation of aeromagnetic and electromagnetic data.

The reservations cover about 160,000 hectares and are distributed throughout Finland. Some 581 magnetic and electromagnetic targets have been identified, with signatures characteristic of kimberlite pipes.

Geochemical work on the target areas is under way and should be completed by the end of June. Drilling will follow.

Some of the targets are in the Kaavi and Outokumpu areas, where Ashton Mining recently discovered 22 kimberlite pipes. Of this total, 13 are reported to be diamond
iferous and four are described as economic.

Botswana

* Reverse-circulation drilling, representing 4,923 metres, has been completed on 34 of 74 targeted anomalies at the Molopo property in Botswana.

Southern Africa Minerals (TSE) says 26 kimberlite pipes were intersected, of which seven were known and 19 newly discovered.

* In the same country, Sikaman Gold Resources (TSE) has begun an exploration program on the 11,652-sq.-km Gweta property, in the northeast.