DIAMOND NEWS ROUNDUP — Monopros encouraged by results from Doyle Lake project

Preliminary results from indicator mineral sampling carried out this past summer by Gerle Gold (VSE) are being used to guide follow-up sampling in a bid to identify drill targets at the Doyle Lake project in the Northwest Territories.

This year’s program, budgeted at $650,000, is being supervised by Monopros, the Canadian exploration arm of South Africa-based DeBeers Consolidated Mines. Monopros can earn a 60% interest in the Doyle Lake properties by spending $4.6 million on exploration by the end of 1997.

To date, most of the work has concentrated on the LA-130 group of claims, whose northern boundary lies within 1 km of Mountain Province’s 5034 kimberlite pipe. Initial work over the properties included airborne magnetic surveys flown at 100-metre spacings, with targets further defined by helicopter magnetic surveys.

Included in the LA-130 block is a smaller package, identified as LA 26-30, which was staked by Gerle within a claim block it believes was originally staked in violation of the Canada Mining Regulations. SouthernEra Resources (TSE) has also staked ground within the disputed claim block. Both companies are awaiting a decision from the Territorial mining recorder.

Meanwhile, in a separate agreement with the Slave Diamond Syndicate, in which Gerle holds a 40% interest, Archon Minerals (VSE) has been given the right, until year-end, to select potential kimberlite targets on claims owned by the Syndicate in the Fishback Lake area.

Archon can then earn a half interest in any claim containing a target by incurring expenditures of $250,000 on that target by the end of 1996. In doing so, Archon maintains its option on all other targets until the end of 1997. Archon’s interest is subject to a back-in right held by Dia Met Minerals (TSE). An airborne electromagnetic survey has commenced over the claims.

The remaining interest in the Syndicate is divided equally among Norcal Resources (VSE), Tenajon Resources (VSE) and Westley Technologies (TSE). The Syndicate continues to carry out indicator mineral sampling in the Desert Lake area of its holdings, outside the disputed corridor of land claimed by both the Dogrib and Deh Cho people.

Elsewhere in the Northwest Territories

* Winspear Resources (VSE) and Aber Resources (TSE) are consolidating their interests in the Camsell Lake joint-venture project, 140 miles northeast of Yellowknife.

Winspear will acquire Aber’s 40% interest, to hold an undivided 70% stake in the project, in return for issuing company shares to Aber. As a result, Aber will hold no less than a 35% controlling stake in Winspear.

Aber President Grenville Thomas says the deal is mutually beneficial to both companies. Aber gains exposure to Winspear’s other projects while its interest in Camsell Lake changes little; meanwhile, Winspear should find it easier to raise financing for Camsell Lake by having a larger stake in the project.

The remaining interest in Camsell Lake is divided among AfriOre (VSE) (formerly known as Amarado Resources), with 20%, and Consolidated Newgate Resources (VSE), with 10%.

Saskatchewan

Initial microdiamond counts from this year’s bulk sampling program at the Fort a la Corne property have been released.

Kensington Resources (VSE) performed the work as part of its earn-in commitment on the property, which it will eventually share equally with Uranerz Exploration & Mining, Monopros and Cameco (TSE).

Eight large-diameter holes were drilled, each of which tested a separate kimberlite body.

Samples weighing 16-19 kg, taken from various depths in each kimberlite tested, yielded between zero and 33 microdiamonds. The 58 microdiamonds found in the two samples from kimberlite 147 represent the highest number per kilogram recovered thus far on the property.

Mineral chemistry results and macrodiamond counts are expected shortly.

Africa

* Toronto-listed United Reef has sold 1,031 carats of rough diamonds from the Bamingui River property in the Central African Republic. The average value realized was US$203 per carat.

A parcel of 416 carats sold in 1994 yielded only US$180 per carat. United Reef management believes the increase in value is due to the increase in the average size of the diamonds recovered at the company’s new processing plant, which is now operating at 27 tonnes per hour.

Bulk sampling on the property is ready to begin, and drilling is ongoing.

* CDN-listed TNK Resources has completed the sample collection program on its diamond prospect in the Gope area of Botswana. A total of 822 samples were collected. Of these, 495 samples were taken from coincident geochemical-geophysical anomalies and 327 were from the grid sampling over TNK’s licence area surrounding the Gope 25 kimberlite pipe.

The program is expected to reduce TNK’s 55 targets (the coincident anomalies) to 20 priority drill targets.

* White Pointer Holdings, a wholly owned subsidiary of Redaurum (TSE), has withdrawn its offer to acquire all the shares of Auridiam Consolidated NL.

Auridiam is Redaurum’s partner in the River Ranch diamond mine in Zimbabwe.

Redaurum, meanwhile, remains interested in acquiring Auridiam.

Closer to home, Redaurum’s diamond recovery plant at Kelsey Lake, Colo., is nearing completion, with commissioning scheduled for October.