DIAMOND NEWS ROUNDUP — Mountain Lake Res. joins Ashton in South African diamond venture

A joint venture has been formed between Mountain Lake Resources (VSE) and Ashton Mining’s African subsidiary to evaluate the Nooitgedacht alluvial diamond property in South Africa.

Alluvial gravels exposed at Nooitgedacht have been worked for diamonds on a small scale over a period of several decades. Some 15% of the property has been prospected to date, and Mountain Lake’s exploration bulk samples have yielded 60 diamonds totalling 99.7 carats which were sold

for an average price of US$493 per carat. The high value attests to their exceptional gem quality.

Drilling by Mountain Lake over a restricted part of the property adjacent to the old workings has delineated a buried extension to the gravel deposit, and the company believes it may be able to increase the volume of the property’s known diamondiferous gravel reserves.

Ashton can earn a 51% interest in Nooitgedacht.

Elsewhere in Africa

Consolidated Venturex Holdings (VSE) can acquire up to an 83% interest in four offshore diamond concessions comprising 850 sq. km along the coast of Liberia, West Africa.

An initial 75% interest can be earned by spending US$600,000 on exploration, with an option to purchase a further 8%.

Northwest Territories

Initial drilling of a minimum of five targets on the CJ claim group in the Lac de Charloit region is about to begin.

Geophysics and geochemical sampling have led to the identification of 25 potential targets. Ming Financial (ASE) is earning a half interest from partners ITL Capital (VSE) and Riley Resources (VSE).

Processing of surface samples from the JP kimberlite yielded almandine-pyrope garnets, corundum and graphite. The kimberlite is one of three identified on the Nikos property on Somerset Island, held 50% by Cyclone Capital (VSE).

The company recently acquired several other claims on Somerset Island, subject to a back-in right held by Cominco (TSE).

Ontario

Drilling of the OPAP kimberlite pipe has begun.

Situated in the north, the project is a joint venture of Consolidated Pine Channel Gold (VSE) and JNR Resources (VSE) (formerly June Resources). The partners will drill at least six holes on their New Liskeard-area property in an effort to delineate the kimberlite.

A further 14 targets with geophysical signatures similar to those of the OPAP pipe have been identified from ground geophysics, and the partners plan to drill them as well. All the areas selected for drilling are up-ice from where the Nipissing diamond, North America’s largest, was found in 1906.