DIAMOND PAGE — Drilling under way at Munn Lake

Drills have begun spinning at Munn Lake on the Black Lake diamond project, 100 km south of Lac de Gras in the Northwest Territories.

Partners Island-Arc Resources (IAR-V), Kalahari Resources (KLA-V) and SouthernEra Resources (SUF-T) have budgeted a 10-to-15-hole, 1,500-metre program to follow up the discovery of a kimberlite sill.

Operator SouthernEra will try to define the strike and down-dip continuity of the sill, as well as its thickness. In March, 10 holes defined a narrow kimberlite body. A 42-kg sample yielded two macrodiamonds and 12 micros, most of which were white and of good quality.

Island-Arc and Kalahari can increase their interest in Black Lake by spending $750,000 on exploration. Island-Arc would then hold a 15% interest; Kalahari, 25%; and SouthernEra, the remaining 60%. A division of London-based Rio Tinto (RTP-N) holds a back-in right to a 30% stake from SouthernEra.