Diamond News Roundup — KWG, Spider find more kimberlites in northern Ontario

The number of diamondiferous kimberlites known to exist on the James Bay Lowlands property of KWG Resources (ME) and Spider Resources (ASE) is now five.

Two kimberlites, referred to as Kyle No. 2 and No.3, have been found in a geological setting similar to that belonging to the Kyle Lake kimberlite body, although they are 80 to 100 km away from the earlier discovery. The kimberlites are diamondiferous, with a small volume of drill core yielding both macro and microdiamonds.

KWG and Spider’s joint-venture partner, Ashton Mining of Canada (TSE), reports that a 552-kg laboratory sample from Kyle No. 2 contained 4 macros and 14 micros. A 59.9-kg sample had 1 macro and 1 micro.

Meanwhile, 3 macros and 45 micros were recovered from a 153.7-kg sample taken from the Kyle No. 3 kimberlite.

Exploration and evaluation will be carried out on the James Bay Lowlands property over the remainder of 1995.

The property is owned 70% by KWG and 30% by Spider, while Ashton has an option to earn a 51% interest.

Northwest Territories

* Trade Winds Resources (VSE) is expecting additional results from kimberlite intersected at the Drybones Bay property near Yellowknife.

Results from the previous phase of work included 2 microdiamonds in 36.1 kg of sample from hole 95-2 and 4 micros plus 2 macros in 36.3 kg of core from 95-3.

Overseas

* A private placement of 1.2 million units at 80 cents each will give Archangel Diamond (VSE) funds for further work on its two diamond joint ventures in Arkhangelsk, a province in northwestern Russia.

The units include a share and a warrant. Four warrants give the holder the right to buy an additional share at 80 cents for a period of one year.

* Mink Mineral Resources (VSE) and a subsidiary of Australian-based Ashton Mining have signed an agreement with the government of Mali enabling them to explore for diamonds and other precious stones.

Ashton is directing the program, which covers a 36,000-sq.-km area.