Diamond News Roundup — Lytton and New Indigo define kimberlites at JD/OD claims

At the jointly held JD/OD claim block of Lytton Minerals (TSE) and New Indigo Resources (ASE), delineation drilling continues to define two land-based kimberlite pipes, while an additional large-diameter drill collects an initial 100-tonne bulk sample.

The JD/OD claim block is part of Lytton’s and New Indigo’s 3.6-million-hectare land package north of Lac de Gras.

Further processing of core from the original discovery hole of kimberlite JD/OD-1 resulted in a total of 102 macrodiamonds and 580 microdiamonds from 229.59 kg of sample material for hole JD-14.

Additional holes from this pipe yielded the following results: 128 macrodiamonds and 218 micros from 108.46 kg of core for hole JD-12; 108 macros and 272 micros from 162.70 kg for JD-16; 37 macros and 112 micros from 102.90 kg for JD-17; 200 macros and 387 micros from 206.77 kg for JD-26; and 202 macros and an incomplete 184 micros from 304.17 kg for JD-28. The sorting for micros for hole 28 is still ongoing.

To summarize, a total of 1,114.56 kg of processed core material from the JD/OD-1 kimberlite yielded 777 macros and 1,753 micros (or 6.97 macros per 10 kg). Of the macrodiamonds recovered, 193 are greater than 1 mm in size and 14 are greater than 2 mm.

Separated by a short distance from JD/OD-1 is a second kimberlite pipe with a similar mineralogy. It is not known if the pipes connect. The joint-venture partners say results from the JD/OD-2 will be released once a representative quantity has been processed.

Elsewhere in the Northwest Territories

* Based on drilling efforts to date at the AK property, Glenmore Highlands (ASE), with a 40% interest, believes the 5034 kimberlite contains a minimum resource of 12 million tonnes.

Thirty-eight delineation holes have tested the 5034 area, which lies 150 km south of Lac de Gras. The central and southern portions of the pipe remain open to the south, east and west.

Continued processing of kimberlite core from hole AK-23 returned 294 macros and 466 micros from 241.99 kg. To date, hole AK-23 has yielded 470 macros and 748 micros (or 11 macros per 10 kg) from a total of 427.08 kg of sample. Of the macrodiamonds, 122 are greater than 1 mm and 14 are greater than 2 mm.

Hole AK-23 is a vertical land-based hole situated 310 metres north of the original AK-2 discovery hole and 30 metres north-northeast of the edge of the lake. It was drilled to a depth of 383 metres and intersected 284 metres of kimberlite.

Results for two further drill holes include 50 macros and 111 micros (or 8.33 macros per 10 kg) from 60.65 kg of sample from hole AK-16 and 32 macros and 66 micros (or 8.71 macros per 10 kg) from 36.75 kg of core from hole AK-22.

Overall, processing to date of 1,412.78 kg of sample from the 5034 kimberlite has recovered 1,200 macros and 3,534 micros (or 8.49 macros per 10 kg). A total of 264 macros are greater than 1 mm in size and 28 macros are greater than 2 mm.

The remainder of the AK property is held 50% by Mountain Province Mining (VSE) and 10% by Camphor Ventures (VSE). Glenmore is 45% owned by Lytton Minerals.

* A newly formed agreement will allow Monopros, a wholly owned Canadian subsidiary of DeBeers, to earn up to a 61% interest in the 87,200-hectare Misty Lake property.

By incurring exploration expenditures of $4.7 million prior to the end of 1999, with $750,000 to be spent by Dec. 31, 1996, Monopros can initially earn a 51% interest. An additional 10% can be earned by funding the project through to production.

Sampling is set to begin on a portion of the claims southwest of Mountain Province’s AK property.

Upon Monopros vesting a 51% interest, the Misty Lake joint venture will consist of SouthernEra Resources (TSE) holding a 29% interest, Major General Resources (VSE) with 12%, and the International Diamond Syndicate with 8%.

In the event Monopros finances the property to the production stage, SouthernEra will hold a 23% share, Major General will hold 9.6%, and the Diamond Syndicate will hold 6.4%. The International Diamond Syndicate is owned 40% each by Calco Resources (VSE) and Teryl Resources (VSE), with the remaining 20% held by Agate Bay Resources (VSE).

* Ashton Mining of Canada (TSE) has broadened its exploration effort in Canada’s north by forming a new exploration joint venture with Pure Gold Resources (TSE) and Lytton Minerals (TSE).

Ashton can earn a 51% interest in a large group of mineral claims owned by Pure Gold and Lytton in the Slave province. The claims cover an area totalling 106,800 hectares in the Snare Lake region, west of the Lac de Gras diamond camp and southwest of the Lupin gold mine.

British Columbia

* Anvil Resources (ASE) can buy up to a 50% interest in the Ice property, west of Elkford, B.C., consisting of certain mineral claims wholly owned by Consolidated Ramrod Gold (TSE) and certain claims jointly held by Ramrod, Brimstone Gold (VSE) and White Knight Resources (VSE).

By spending $1.3 million on exploration over two years, Anvil can initially earn a 30% interest. The company plans to bulk sample five kimberlite pipes currently identified on the property.

An additional 20% interest can be earned by spending a further $5 million by May 31, 1998, thereby reducing Brimstone and White Knight to a 10% interest each.

Meanwhile, Anvil and partners Consolidated Newgate Resources (VSE) and Prior Resources (ASE) have acquired an option to acquire three mineral claims totalling 1,856 hectares in the Courageous Lake area in the Northwest Territories.

To exercise the option, Newgate is required to pay the vendor $15,000 and issue 100,000 shares, Prior must issue 400,000 shares and Anvil is required to issue 100,000 shares.

Ontario

* Diamonds have been discovered on Transpacific Resources’ (CDN) gold-copper property near Kirkland Lake, Ont.

Several macrodiamonds were uncovered in basal till samples collected from four sites on the property.

In addition to the identification of macrodiamonds at sites 600 metres apart, diamond indicator minerals (including chrome diopside and G10 pyrope garnets) have been found at 33 different locations on the property. A program to locate the diamond source will now be undertaken.

Africa

Serengeti Diamonds (VSE) will acquire a second 40% interest in 10 diamond projects in Tanzania, thereby increasing its total stake to 80%.

Three of the projects are groups of claims on which gem-quality diamonds have been identified. Serengeti plans to develop these three properties, employing a 50-tonne-per-hour pilot plant.

Seven of the projects are reconnaissance licences comprising 89,400 sq. km. In late 1994, a preliminary field examination and ground magnetic survey was carried out on four of 20 magnetic anomalies on one of the reconnaissance licences. Two new kimberlite pipes were outlined.

* With only a small percentage of sampled material from its South African kimberlite having been treated, SouthernEra Resources (TSE) has found three large macrodiamonds.

The three stones weigh 4, 1.87 and 1.4 carats, respectively.

SouthernEra’s current treatment plant process has been upgraded so that 2.5 tonnes can be processed in a 10-hour work day.

Core drilling to determine depth extent and diamond content began in August. Trenching and mapping have thus far indicated a strike length of 825 metres with both eastern and western extensions open. Detailed loam sampling at 200-metre intervals is under way in an attempt to guide the trenching. Reconnaissance sampling over the total potential of strike (about 35 km) has also been completed in recent weeks.