DIAMOND NEWS ROUNDUP — TNK reclassifies Botswanan property as diamond resource

Following a review of work completed by DeBeers Cosolidated Mines in the 1970s, Midswana Diamond Exploration has removed the Middlepits property in Botswana from the exploration category and tagged it a diamond resource.

Midswana, which is 70% owned by CDN-listed TNK Resources, estimates the resource contains close to 40 million carats.

DeBeers’ work on the property revealed 250 sq. km of diamondiferous gravels, and 4.43 carats from 72 stones were recovered from 68.2 tonnes of test material. Midswana says the sampling work by DeBeers was inadequate to test such a large diamond deposit, so the company will carry out bulk sampling and processing of gravels through a small pilot plant on site. Midswana expects to define high-grade areas within the gravels — possibly old river channels — which can be economically mined.

* A significant widening of the main fissure at the Rex diamond mine in South Africa has been encountered.

Rex Diamond Mining (CDN) reports that the “mini-pipe” appears to be 35 metres in diameter, compared with the current fissure width of 0.5 metre. In addition, drilling has encountered a second mini-pipe, farther along the same fissure.

As a result of this discovery, Rex estimates the throughput will triple to 16,360 tonnes per month by January or February from the current rate of 5,455 tonnes. This increased throughput will allow the recently expanded mill at the Rex mine to operate at full capacity in mid-1996, a year earlier than previously anticipated.

Production from the Rex mine consists of 92% gem-quality diamonds, which are sold at an average price of US$220 per carat. The undiluted grade is 50 carats per 100 tons, while the production grade is 25 carats per 100 tons.

* A large, airborne, geophysical database covering the entire country of Tanzania has been acquired by Serengeti Diamonds (VSE) for the purpose of locating kimberlite pipes.

The data were compiled in 1979-81 in a flying program of 1 million line kilometres at 1-km spacings and a ground clearance of 100 metres. The cost of collecting the data today would be more than US$20 million.

Serengeti has extensive diamond exploration licences in the Tanzanian craton, which contains some of the largest known economic kimberlite pipes in the world.

Elsewhere Overseas

* Toronto-listed America Mineral Fields has signed an agreement with Gold Standard (NASDAQ) to acquire rights to two groups of properties in the Brazilian state of Minas Gerais.

The properties are in an area being explored for kimberlites by several major companies, including DeBeers.

Meanwhile, a recent consultant’s report on America Mineral’s nearby Santo Inacio project says the property contains an indicated resource of 2.6 million cubic metres of diamondiferous, alluvial gravels grading 0.039 carat per cubic metre. Included are some unusually large, gem-quality stones (up to 250 carats), most notably some highly prized pink diamonds.

On the Chapada project in Mato Grosso state, America Mineral expects to commence diamond production by the fall of 1996. A consultant has estimated there are 4 million metres of diamondiferous gravels with a grade of 0.04 carat per cubic metre.

* Australian-based Striker Resources and partner Sage Resources (VSE) have discovered a second major kimberlite at their Beta Creek diamond project in Western Australia.

Inclined drilling of a chromite anomaly at Upper Bulgurri intersected kimberlite from a depth of 10.9 metres to the end of the hole at 84 metres. The newly discovered Ashmore pipe occurs as oxidized breccia over the upper 49 metres; beneath this depth, the structure is reported as being massive and xenolith-free. Analysis of the drill core is in progress.

Ashmore lies 2 km south of the Lower Bulgurri kimberlite, where mini-bulk trench and drilling samples are being processed.

Additional drilling, geophysics and bulk sampling will be carried out in an attempt to establish the size and grade of the Ashmore pipe.

Northwest Territories

* Ground geophysics are being applied to the Wecho River property, 100 km northwest of Yellowknife.

Mongolia Gold (VSE) owns a half interest in the project, which comprises 23,200 hectares. These claim blocks adjoin the Royce property of GMD Resource (VSE), as well as claims held by Archon Minerals (VSE).

Mongolia recently reported the discovery of pyropes and chrome diopsides in 10 widely spaced samples.

* Glenmore Highlands (ASE) has completed a private placement of 750,000 common shares at $3.65 each. The proceeds will be used to fund ongoing exploration and development work at the AK-CJ property in the Territories and at properties in Finland.

Glenmore holds a 40% interest in the AK-CJ, with the remaining interest divided between Mountain Province Mining (VSE) with 50% and Camphor Ventures (VSE) with 10%.

* In separate transactions, Sunstate Resources (VSE) has agreed to buy two claim blocks in the Territories. By issuing 100,000 shares and paying $10,000, Sunstate can acquire the SHO-1 claim. The property is 116 km east of Yellowknife and covers 572 hectares. The Tell-1 block consists of 82 hectares and lies 125 km east of Yellowknife. The purchase price is 100,000 shares and a payment of $5,000.