DIAMOND NEWS ROUNDUP — Drilling and sampling in full swing at AK joint venture

Delineation drilling of the 5034 kimberlite pipe is continuing at the AK property, held 50% by Mountain Province Mining (VSE), 40% by Glenmore Highlands (ASE) and 10% by Camphor Ventures (VSE).

To date, 29 holes have tested the 5034 kimberlite area, situated 150 km south of Lac de Gras, N.W.T. The pipe, which contains four distinct facies, remains open to the north and to the south.

Processing of further drill core has yielded additional results for three holes. A sample weight of 154.8 kg from hole AK002E returned 154 microdiamonds and 35 macros, or 12.21 diamonds per 10 kg. A total of 11 macros were greater than 1 mm in size.

Hole AK002F yielded 110 micros and 37 macros from 45.9 kg of core, or 32.03 diamonds per 10 kg. Six macros exceeded 1 mm. A further 91.8 kg of sample material from hole AK002N returned 181 micros and 60 macros, or 26.25 diamonds per 10 kg. A total of 11 macros measured greater than 1 mm.

Overall, selected sampling of drill core from the 5034 kimberlite pipe has yielded a total of 2,403 micros and 580 macros from 716.95 kg of material processed to date. Of the macros, 114 exceed 1 mm.

The joint-venture partners report that owing to the backlog of samples to be processed, its operator on the property, Vancouver-based Canamera Geological, is setting up a caustic dissolution laboratory to aid in the processing.

In related news, Mountain Province and Camphor Ventures failed to reach an agreement with respect to their proposed amalgamation and have subsequently elected not to proceed.

Africa

* Sales of rough diamonds by De Beers’ Central Selling Organisation (CSO) for the first six months of 1995 amounted to US$2.54 billion, 1.6% less than during the same period in 1994. In Rand terms, however, sales were 0.9% higher than for the first half of 1994.

The CSO reports that prospects for the retail diamond jewellery market remain positive in most parts of the world, following 1994’s world retail sales record. But while rough diamond sales for the first half of 1995 have held up well in line with continuing growth in world retail demand, the CSO remains cautious about second-half sales.

In a speech at a recent diamond industry conference in Russia, CSO Managing Director Gary Ralfe noted that the emergence of the U.S. and other Western nations from the economic recession and the corresponding increase in diamond sales should have led to rising prices and increased confidence in the diamond business. Instead, the morale of the market is poor and prices are down. “The polished market remains a buyers’ market,” he added.

Ralfe said that since 1993, “too many” Russian diamonds have reached markets outside of the single channel of the CSO, which is threatening the equilibrium of the diamond business and creating the perception of a communication breakdown between the Russian diamond industry and the CSO.

“This perception is compounded by the fear that diamond sales from Russia are dictated more by Russia’s need for foreign exchange than by the real needs of the market, and that Russia will be prepared to sacrifice on the altar of short-term gains of foreign exchange the long-term well-being of the diamond industry, including its own diamond industry.”

Ralfe said De Beers seeks to address complaints that the Russian diamond industry is not treated as a full and equal partner of De Beers, and is continuing its dialogue with Russian authorities.

* A 10.7-tonne bulk sample of dry kimberlite on SouthernEra Resources’ (TSE) fissure property in northeastern South Africa has yielded 47.26 carats, and each individual sample has shown a consistent grade of about 4 carats per tonne.

All recovered diamonds are from concentrate-size fractions ranging from 0.6 to 8 mm, and most of the diamonds recovered are greater than 1 mm in size. Fewer than 1% of the stones may be classified as microdiamonds, and at least 20 stones weighing more than 0.5 carat have been found, the largest being 1.7 carats. Many exhibit good white colors and clarity, and relatively few industrial diamonds are present.

The sample was excavated from a pit sunk on a 1.2-metre-wide, near-vertical kimberlite dyke or fissure, following removal of potentially enriched surficial material. Reconnaissance soil sampling, 12.7 km along strike from the main pit, has also located an area with indicator minerals having similar excellent chemistry to the main kimberlite.

An accelerated program of exploration and continued bulk sampling will attempt to expand the size of the known dyke at depth and along strike, and also to continue to process material for diamond recovery. Ten-inch, reverse-circulation drill holes will be put down at intervals along strike to determine whether any near-surface enrichment is present in the dyke. In addition, exploration will begin elsewhere on the property to locate new occurrences.

* In Ghana, West Africa, St. Jude Resources (VSE) dropped its option on the Birim River diamond property after reviewing geological and economic data. The company will now focus on gold prospects within the country.

* Farther south, in Botswana, an airborne magnetic survey is under way on a portion of the Gope East concession of Amarado Resources (VSE). Previous sampling of the area recovered 17 macrodiamonds. At the Kareevlei Wes project in the Kimberley region of South Africa, a drill program, designed to bulk-test a diamondiferous kimberlite, has commenced.