DIAMOND NEWS ROUNDUP — BHP reports improvement in grade for

Results from diamond evaluations on the N.W.T. Diamonds project near Lac de Gras indicate an improvement in the grade of the Fox pipe.

Last year, BHP Diamonds mined a 6,915-tonne sample from a decline into the Fox pipe and extracted 1,766 carats for a grade of 0.26 carats per tonne. That grade was lower than what was projected by surface drilling, and BHP subsequently completed two 32-metre-long raises to sample the area immediately above the existing workings.

Raise No. 1, situated near the periphery of the pipe, returned 147 carats from 434 tonnes for an average grade of 0.34 carats per tonne. Raise No. 2, near the centre of the pipe, extracted 417 tonnes to yield 160 carats — equivalent to an average grade of 0.38 carats per tonne.

An evaluation of the diamonds by eight experts returned an average value of US$123 per carat for the Raise No. 1 diamonds and US$133 per carat for those of Raise No. 2. The average value per carat for the diamonds recovered from the decline is US$125.

BHP also released results from the underground bulk sample performed on the Panda pipe. A total of 2,508 carats were recovered from 2,758 tonnes for an average grade of 0.9 carats per tonne. The diamond evaluators returned an average value of US$132 per carat.

The decline values are slightly lower than the surface drilling results. Previous surface drilling on the Panda pipe recovered 270 carats from 230 tonnes, for a grade of 1.18 carats per tonne. Those diamonds were valued at an average of US$127 per carat.

Exploration and development work at the property is continuing, with five reverse-circulation drill rigs now in operation. The program will include further drilling on the five pipes BHP plans to develop. The work will recover between 250 and 1,000 tonnes from the five pipes, with the objective of further defining their shape and grade.

Drilling is also planned on five other pipes which are known to contain diamonds. Samples of between 100 and 200 tonnes will be taken from each pipe in order to evaluate grade and diamond values.

BHP hopes to receive permits for the project in 1995 in order to begin construction in 1996 and production in late 1997.

BHP holds a 51% interest in the project, with Dia Met Minerals (TSE) holding 29% and private individuals, the balance.

Elsewhere in the Northwest Territories

* Mountain Province Mining (VSE) reports that its previously announced kimberlite intersection on the AK-CJ claim contains pyrope garnets and abundant eclogitic xenoliths.

The hole intersected 90 metres of kimberlite below 7.5 metres of lake water and 6 metres of overburden. Further drilling is planned both to outline the size of the pipe and to test other targets.

Mountain Province holds a half interest in the property, Glenmore Highlands (ASE) owns 40%, and Camphor Ventures (VSE) has the balance.

* Having received results from a summer exploration program on its alluvial properties in the Coronation Gulf region, Caledonia Mining (TSE) has decided to shift its attention from the offshore areas to the inland rivers. No diamonds were recovered in that program.

The company plans to give priority to the rivers draining to the south, east and west of the Bear and Slave geological provinces, where preliminary investigations have been encouraging.

However, because of the immensity of the offshore areas and the relatively small scale of the sampling programs carried out in these areas, the mineral rights to most of the projects in the Coronation Gulf have been retained.