DIAMOND NEWS ROUNDUP — Bulk sampling set to wind down at Diavik joint venture

The influx of warmer weather is expected to signal an end to the mini-bulk sampling program on the A-154 kimberlite pipes.

The Diavik property, situated in the Lac de Gras area of the Northwest Territories, is held 60% by Kennecott and 40% by Aber Resources (TSE).

To date, seven large-diameter (15-cm) drill holes have tested the A-154 South pipe and two have tested the A-154 North pipe. An eighth hole, LDC-10, is expected to be the last of the program and is currently in progress in the South pipe. All the large-diameter holes drilled have bottomed in kimberlite.

Recent processing results for three holes drilled in the South pipe include 37.2 carats recovered from 7.9 tonnes of kimberlite for an average grade of 4.7 carats per tonne for hole LDC-3, 22 carats recovered from 5.9 tonnes for an average grade of 3.7 carats per tonne for LDC-8, and 40.5 carats recovered from 7.8 tonnes for an average grade of 5.2 carats per tonne for LDC-9.

Core from the six holes processed to date from the South pipe have yielded an average grade of 4.7 carats per tonne from 40.5 tonnes of kimberlite material. The two holes drilled in the North pipe recovered an average 2.2 carats per tonne from 12.9 tonnes.

Further small-diameter delineation drilling of the South pipe recovered 165 macrodiamonds and 322 micros from 367.6 kg of kimberlite (or 13.3 diamonds per 10 kg) from hole A154-13. Of the macros recovered, 35 are greater than 1 mm in one dimension, including one which is greater than 2 mm and another, greater than

3 mm.

Operators will decide whether or not to proceed with underground bulk sampling after all results from the large-diameter drilling program are known.

Meanwhile, delineation drilling on the project’s A-21 pipe totals five holes to date. Holes A21-5 and A21-6 intersected a predominantly mud-rich epiclastic kimberlite, whereas A21-7 through A21-9 intersected both mud-rich epiclastic and pyroclastic kimberlite.

Caustic fusion analysis, performed on the first two holes, recovered 44 macrodiamonds and 109 micros from 219.7 kg of core (or 7 diamonds per 10 kg) from hole A21-5; and 7 macros and 25 micros from 56.8 kg of sample (or 5.6 diamonds per 10 kg) from A21-6.

Two visible diamonds were observed in hole A21-9, one of which is described as clear-white measuring 4.5 by 3 by 2.5 mm, the other being grey and measuring 4.5 by 3 by 3 mm. Results are expected for the three remaining holes by the end of the month, and deep delineation drilling of A-21 is expected to resume this week.

Exploration continues at Diavik as geophysical surveys determine targets for follow-up drilling. Aber has made two new kimberlite discoveries, A10 and T8, both of which are undergoing microdiamond analysis

Northwest Territories

– Joint-venture partners Mountain Province Mining (VSE), Glenmore Highlands (ASE) and Camphor Ventures (VSE) have processed 355.9 kg of kimberlite from the 5034 pipe on the AK property.

The material consists of selected samples from the initial discovery hole, as well as three other delineation holes.

Previously, Mountain Province reported results from incomplete sampling of the discovery hole which totalled 184.37 kg of kimberlite. Processing recovered 295 macrodiamonds and 1,397 micros, or 91.77 diamonds per 10 kg.

The newly reported 171.53 kg of kimberlite material, sampled from at least three holes, yielded 97 macros and 373 micros, or 27.4 diamonds per 10 kg. Out of the total 355.9 kg of core, 73 of the macros recovered are greater than 1 mm and weigh 1.69 carats.

Mountain Province says 18 holes have tested the 5034 pipe to date. It is worth noting that complete results from the initial discovery hole have not been released, and this has caused some concern. David James, mining analyst for Canaccord Capital, states: “In our experience in the Lac de Gras play to the north, the results from core analysis are normally reported on a hole-by-hole basis and the holes are usually complete.”

The AK property is held 50% by Mountain Province, 40% by Glenmore and 10% by Camphor.

– Additional processing of core from the original discovery hole on the land-based JD-OD-1 kimberlite is reported by partners Lytton Minerals (TSE) and New Indigo Resources (ASE).

Caustic dissolution of 218.57 kg of kimberlite material from hole JD-14 has recovered 95 macros and 558 micros, or 29.88 diamonds per 10 kg. And core from an additional seven drill holes is being logged and processed.

While drill-testing of additional kimberlite targets is planned to continue, a 400-tonne bulk-sampling program of the JD-OD-1 pipe is proposed for the summer.

The JD-OD claim block makes up part of Lytton and New Indigo’s jointly held 3.6-million-hectare property in the Territories.

– An airborne magnetic and electromagnetic survey is under way on the 95,114-hectare Cook Lake joint-venture property, 30 km southeast of Mountain Province’s AK property.

Tanqueray Resources (ASE), which holds a 40% interest, will act as operator and undertake a geochemical sampling program by mid-June. The joint venture recently added to its holdings by acquiring a full interest in an adjoining 36,822-hectare claim block. The group consists of Mill City Gold Mining with a 30% interest; Williams Creek Explorations (VSE) with 15%; and Almaden Resources (VSE) with the remaining 15%.

Overseas

– Montreal-listed Nora Exploration has completed a feasibility study on a portion of its Kade diamond concession in Ghana.

Nora owns 90% of the project, with the government of the West African country holding the remainder.

Results from a second phase of exploration establish proven reserves of 103,701 carats of diamonds at 0.25 carats per sq. metre, and 665 oz. gold at 49 milligrams per square metre. When combined with probable reserves of 191,936 carats of diamonds at 0.37 carats per sq. metre and 2,157 oz. gold at 0.13 grams per sq. metre, total reserves at Kade come to 295,637 carats of diamonds and 2,822 oz. gold.

These reserves are fully diluted and are based on 1,250 samples taken from 350 exploration pits.

Diamond distribution ranges from 4 to 12 stones per carat. Gem-quality diamonds account for 34.2% of the production.

A feasibility study was completed for Nora by the Mineral Prospecting & Development Company of Ghana. Production startup costs are estimated at $3.5 million.

For the first year, Nora projects gross revenue of $2.5 million based on extraction and processing of 113,000 cubic metres of mineralized gravel. In the second year, gross revenue of $3.5 million is projected, based on the extraction and processing of 168,000 cubic metres of mineralized gravel.