DIAMOND PAGE — Saskatchewan’s Candle Lake play catches the

Exploration in Saskatchewan is turning up a few more diamonds for partners War Eagle Mining (VSE) and Great Western Gold (VSE).

Although results to date are low in comparison with those reported from leading projects in the Northwest Territories, the two juniors are talking with several major mining groups interested in participating in the Candle Lake project.

War Eagle and Great Western have assembled a land package covering 322,000 hectares in Saskatchewan, which includes five reported diamondiferous kimberlite bodies. So far, 40 diamonds have been recovered from 231.7 kg of core. Although 38 of these are described as “clear, white gem-quality,” only five are of macro size (i.e. greater than 0.5 mm).

War Eagle and Great Western plan to report details of a proposed joint venture once results are in hand from the current program. Both state that a joint venture with a major would be in the interests of shareholders. Northwest Territories

* Ashton Mining of Canada (TSE) appears to be stepping up the pace of exploration in the Humpy Lake region to the west and south of Lac de Gras. The company has already discovered a kimberlite body in the area, on a land package joint-ventured from Pure Gold Resources (TSE) and Tenajon Resources (VSE).

Ashton has begun drilling the Humpy 1 and Humpy 2 properties and will test geophysical targets to determine the source of indicator minerals found there. Ashton can earn a 51% interest in these properties from various juniors, including VSE-listed Atna Resources, Winslow Gold, Island-Arc Resources and Pure Gold Resources.

This year, Ashton will carry out heavy-mineral sampling and geophysical surveys on the Truce, Origin and Arseno properties in the Humpy Lake area. The company can earn a half interest collectively from Pure Gold, Major General Resources (VSE) and other junior partners by undertaking all exploration up to and including the taking of a 20-tonne bulk sample. * Indicator minerals have been identified in till samples from Noble Peak Resources’ (ASE) MacKay Lake project in map sheet 75M, southwest of the Lac de Gras region. A total of 480 till and beach samples were collected to evaluate 152 circular airborne magnetic targets.

Noble Peak can earn a 40% interest in the project from SouthernEra Resources (TSE) by spending $2 million on exploration by Dec. 31, 1996. Noble Peak has also completed an agreement to acquire a half interest in the 10,800-hectare Lockhart Lake project in map sheet 85P. Noble Peak can earn its interest in return for 75,000 common shares. It and partner SouthernEra (50% interest) plan to carry out preliminary sampling on the project later this year.

* SouthernEra can earn a 51% interest in Adex Mining’s (TSE) wholly owned Aylmer Lake East property and 67.5%-owned Aylmer Lake West property in the Lac de Gras area. (The balance of the interest in Aylmer Lake West is held by Vancouver-listed Winspear Resources).

In return, SouthernEra must spend $3 million on exploration and pay $420,000 to Adex before March 30, 1998.

Adex has already spent about $800,000 on the two properties in the form of airborne geophysical surveys and regional geochemical sampling. The work has succeeded in identifying targets thought to represent kimberlite pipes. Together, SouthernEra and Winspear plan to spend $400,000 to evaluate these targets further.

On Jolly Lake East, owned 32.5% by Adex and 67.5% by Winspear, a ground geophysical survey is under way to define 20 priority kimberlite targets. These will be drill-tested later this year.

Alberta

Exploration in this province is continuing, although discoveries have been slow in coming. Takla Star Resources (ASE) is starting a low-altitude, high-resolution airborne magnetic survey on its Ram River and Legend blocks. The program is designed to locate potentially diamondiferous lamproite and kimberlite diatreme drill targets. Takla says an “outstanding” lamproitic heavy-mineral geochemical anomaly was discovered last year on the Ram Block. Indicator mineral anomalies have also been identified on the Legend Block, which are speculated to have a local kimberlite source.

Quebec

* Exploration Orbite VSPA (ME) has received microanalyses on indicator minerals from seven different kimberlites obtained from its property in Le Tac Twp. The composition of magnesian chromites, chromium-magnesium ilmenites and chrome diopsides are characteristic of diamond-bearing kimberlite. The next exploration program, scheduled for June, will focus on assessing the diamond grade in two of the major targets outlined to date.

Overseas

Diamond Fields Resources (TSE) is in “advanced-stage discussions” with a view to a possible joint venture on its Luderitz sea concession in Namibia. President Jean-Raymond Boulle said both interested parties are senior mining groups.

Among Diamond Fields’ other projects are two small producing mines in South Africa, which it intends to modify and upgrade in order to increase production.

* Botswana Diamondfields (VSE) reports that field work is under way on both the Mopipi and Makgadikgadi properties in Botswana. At Mopipi, ground geophysical and soil surveys have been completed on eight kimberlite targets. To date, more than 150 anomalies have been identified on the company’s four concessions, which cover 6,039 sq. km.