DIAMOND NEWS — Winter drills turning at Fort la Corne project

Results from last year’s mini-bulk sampling at the Fort la Corne diamond project in Saskatchewan have prompted a winter drilling program.

The project is a joint venture among Kensington Resources (VSE), operator Uranerz Exploration & Mining, Cameco (TSE) and De Beers subsidiary Monopros.

Each company will hold a 25% interest once Kensington completes the terms of an earn-in agreement, which calls for an expenditure of $3.4 million over three years.

Last summer, the joint-venture partners carried out large-diameter drilling on eight separate kimberlite targets, four of which were previously untested. A single hole was drilled into each kimberlite, and mini-bulk samples, ranging in weight from 13 to 41.6 tonnes, were recovered.

Before being shipped to South Africa for macrodiamond processing at De Beers’ recovery plant, composite samples were taken from each bulk sample for treatment by caustic dissolution.

Of the four previously untested kimberlites, two were found to be diamond-bearing. Caustic analysis of the 92-kg composite sample of kimberlite from hole 133-01 yielded 33 microdiamonds, while the 41-tonne bulk sample returned 0.045 carat for an average grade of 0.0011 carat per tonne.

The composite sample from hole 126-01 returned no diamonds, but the 37-tonne bulk sample yielded 0.126 carat for a grade of 0.0034 carat per tonne.

The industry norm is to classify stones smaller than 0.5 mm as microdiamonds, and those greater than 0.5 mm as macrodiamonds. The Fort la Corne partners, however, classify only those stones greater than 1 mm as macrodiamonds.

Kensington and its partners have not released any macro counts for any of the 1995 mini-bulk sampling work, but, instead, are reporting the macro recovery results in the form of a grade.

While four of the targets were previously known to be diamond- iferous, no diamonds were recovered in hole 119-03.

Analysis of a 32-kg sample from hole 122-08 recovered 3 micros and 0.015 carat, while a 13-tonne bulk sample yielded 0.133 carat for a grade of 0.0102 carat per ton. A composite sample from hole 140-08 returned 40 micros and 0.015 carat from 91 kg of core. The 41.6-tonne bulk sample yielded 1.02 carats for a grade of 0.0246 carat per tonne.

A 34-kg sample from hole 147-03 yielded 58 micros, while the 20-tonne bulk sample returned 1.50 carats, giving an average grade of 0.0751 carat per tonne.

Hole 145-04 was drilled in 1994 but was not fully processed. Caustic analysis of a 164-kg sample recovered 136 micros and 0.206 carat, while a 28.7-tonne bulk sample yielded 0.809 carat for a grade of 0.0282 carat per tonne.

For comparison purposes, the five pipes that BHP Diamonds and Dia Met Minerals propose to mine at the N.W.T. Diamonds project, near Lac de Gras, grade: 4.19 carats per tonne for the Misery pipe; 0.95 carat for the Panda pipe; 0.95 carat for the Koala pipe; 0.27 carat for the Fox pipe; and 0.33 carat for the Leslie pipe.

Based on limited drilling and geophysical modelling, Kensington estimates three of its most promising kimberlites could contain as much as 540 million tonnes in the 122 body, 537 million tonnes in kimberlite 140, and 213 million tonnes in the 145 kimberlite.

A scoping study to determine the capital and processing costs of developing a typical kimberlite body at Fort la Corne is in progress. To date, the joint-venture partners have tested 45 of

71 targets. Clive Newall, president of Kensington, says he would like to see a dozen holes drilled this winter.

Kensington expects to close two financings that will generate $4 million. Upon completing the financings, it will have 24 million shares outstanding on a fully diluted basis.