DIAMOND NEWS ROUNDUP — Sage, Striker encouraged by Aussie

Partners Sage Resources (VSE) and Australian-based Striker Resources have received encouraging results from their Beta Creek diamond project in Western Australia.

The following are highlights of the 1994 exploration program: * Partial processing of a 9-tonne bulk sample from the Lower Bulgurri kimberlite yielded 119 macrodiamonds totalling 1.73 carats and 65 micros. A high percentage of the macros are clear and colorless, their shape being octahedral to dodecahedral. The largest macros recovered were 0.2 and 0.17 carats.

* Overall diamond inventory from the Lower Bulgurri area is 208 macros weighing 8.78 carats, the largest two being 0.65 carats each. * A high percentage of the garnets from the kimberlite are harzburgitic pyropes (G10).

* Exploration has extended to 5 km the limits of the kimberlite system at Lower Bulgurri, and associated blows and pipes have been detected in several areas.

* Results from detailed loam-sampling to the south, at Upper Bulgurri, have defined a chromite-pyrope anomaly which requires drill-testing. Chemical analysis of the indicators suggests diamond potential similar to the Lower Bulgurri kimberlite.

* Final recoveries from the Beta Creek anomaly, situated 10 km south of Bulgurri, total 57 diamonds weighing 3.8 carats.

In 1995, the partners will evaluate the Lower Bulgurri kimberlite and explore for additional kimberlites. Drilling and mini bulk-sampling will establish the number, size and potential grade of discrete bodies along the various lineaments.

Several other anomalies at Upper Bulgurri and Beta Creek are ready to be drilled.

Elsewhere Overseas

* Mountain Lake Resources (VSE) has signed a deal to acquire the remaining 50% interest in the Nooitgedacht and Mooi River diamond properties in the Western Transvaal region of South Africa. (Mountain Lake acquired its initial half interest in these properties in December, 1993.)

Under the deal, Southern Cross will receive 500,000 Mountain Lake shares immediately, and up to an additional 500,000 shares afterwards, based on a cumulative cash flow formula relating to diamond production. A first phase of exploration has yielded an average grade of 0.012 carats per ton. To date, 54 diamonds have been recovered for a total weight of 85.25 carats. The average sale price was US$445 per carat.

Projections call for daily production of 10,000 tons (9,090 tonnes) of gravel. Planning is almost complete for a pilot plant capable of treating 480,000 tons of diamondiferous gravel per year. Current drill-indicated diamondiferous gravel reserves total 22 million tons (20 million tonnes). * In Venezuela’s Bolivar state, Lumina Investment (VSE) has acquired the Koh-I-Noor and Los Frijoles 1 and 3 alluvial diamond and gold concessions. The land package consists of seven properties covering 18,000 hectares, including areas where small, alluvial diamond mining operations exist. On the Los Frijoles concession, the company plans to recover gold and expand diamond production by upgrading mining and processing equipment.

Northwest Territories

* Exploration of a 600,000-hectare land package on Victoria Island, N.W.T., has yielded kimberlite indicator minerals for Vancouver-listed partners Ascot Resources and Major General Resources.

Field work in 1994 included reconnaissance till, esker and lake sediment sampling, as well as 30,000 km of airborne magnetometre surveys and selected ground magnetic surveys. Till sampling returned pyrope garnets from four areas, while chrome diopsides were identified in 11. One sample from the northernmost permit returned more than 300 G-9 and two G-10 garnets, in addition to chromites and olivines.

Exploration will resume as soon as weather permits. Ascot can earn an additional 25% interest from Major General by spending $1 million. * Exploration is set to resume on properties held by the Slave Diamond Syndicate near Great Slave Lake. Monopros, a wholly owned subsidiary of De Beers Consolidated Mines, is funding the 1995 program, which is budgeted at more than $1 million. Sixteen targets will be drilled while more than 100 others will be evaluated. Gerle Gold (VSE), with a 40% interest in the syndicate, is operating the program under the guidance of Monopros. Three other companies — Norcal Resources (VSE), Tenajon Resources (VSE) and Westley Technologies (TSE) — each hold a 20% interest. Monopros can earn a 60% interest by spending $7 million over three years.

Saskatchewan

* A low-level airborne geophysical survey will be conducted on Consolidated Pine Channel Gold’s (VSE) Candle Lake and Montreal Lake properties. A gravity survey was recently carried out on selected targets in preparation for drilling. Consolidated Pine holds, or has joint-venture interests in, 450 properties in the province. Partners include Golden Peaks Resources (VSE), June Resources (VSE), Mountain Province Mining (VSE), Golden Marlin Resources (VSE) and Canadian Entech Research (ASE).

* Kensington Resources (VSE) can acquire a 25% interest in the Fort a la Corne joint venture — held equally by Uranerz Exploration & Mining, Cameco (TSE) and Monopros — for a payment of $3.4 million. Seventy-one kimberlites have been identified, with 30 targets yet to be tested. Kensington is arranging financing by way of a private placement.

* A $1.5-million program of drilling and geophysics is planned for the Candle Lake joint-venture holdings, also in the Fort a la Corne area. Operator Kennecott can earn a 60% interest from partners War Eagle Mining (VSE) and Great Western Gold (VSE) by spending $8 million on exploration and development over five years. Five diamondiferous kimberlite pipes have been identified, three of which form a cluster. Upon Kennecott’s earn-in, War Eagle and Great Western can participate at the level of a 40% interest or elect to be carried at a 30% interest (with a back-in right for 10% until the completion of a positive feasibility study).

* Just north of the Candle Lake joint venture’s kimberlite discovery is a 1,200-hectare property over which Ashton Mining of Canada (TSE) recently flew an airborne geophysical survey. The company is earning a 51% interest from a consortium of joint-venture partners, which includes Island Arc Resources (VSE), Winslow Gold (VSE) and Northwind Ventures (VSE).

Ontario and Quebec

* Partners KWG Resources (TSE) and Spider Resources (ASE) have resumed work on the Spider No. 1 and No. 2 projects. The properties are in the James Bay Lowlands of Ontario and in the Temiskaming region of northwestern Quebec, respectively.

Within Spider No. 1, six targets will be drill-tested near Kyle Lake, while an additional hole is drilled into the Kyle Lake kimberlite body. The hole has intersected 50 metres of kimberlite, and drilling will continue to a depth of 700 metres. The hole is being drilled to facilitate the collection of a 1,000-kg bulk sample for diamond analysis. A previous sample from the Kyle Lake body, weighing 151.4 kg, returned 31 macrodiamonds and 88 micros. (Concurrently, Toronto-listed Ashton Mining of Canada is conducting ground geophysical surveys on the nearby MacFadyen No. 1 and No. 2 kimberlites. Definition drilling will follow.)

At Spider No. 2, KWG and Spider Resources are themselves carrying out ground geophysical surveys on 32 magnetic targets. Several of these targets are on properties held in separate joint ventures with Goldhunter Explorations (ASE), Lithos (ME) and Orient Resources (ME). This program, budgeted at about $300,000, is expected to outline several targets for drill testing.