DIAMOND PAGE — Torrie pipe yields more diamonds at Yamba

Joint-venture partners Tanqueray Resources (ASE), Fibre-Klad Industries (ASE) and Mill City Gold (VSE) provided some Christmas cheer to shareholders by reporting that diamonds were found in the second drill hole from the Torrie pipe at Yamba Lake, N.W.T.

A total of 43 diamonds (14 macrodiamonds and 29 micros) were recovered from 36.2 kg of core. A previous hole yielded 39 macros and 152 micros (191 diamonds total) from 161.6 kg of core.

It was also reported that 25 of the total diamonds from Hole 2 were clear-white in color and clarity, while 17 were described as champagne or off-white in color. Two twinned clear-white octahedrons were reported. The companies also noted that the macro-to-micro ratio in the second hole indicated a higher percentage of larger stones than in the first hole. The aggregate of both holes, 197.8 kg of core, yielded 53 macros and 184 micros. So far, results from the Torrie Pipe appear comparable with the Tli Kwi Cho (DO-27) pipe being bulk-sampled by Kennecott Canada. The also appear comparable with the Point Lake kimberlite previously drilled by the BHP Resources Canada and Dia Met Minerals (TSE) joint venture.

The known results from these three pipes — compared in order of macros recovered per 50 kg of kimberlite concentrated to date — show: 14 macros per 50 kg for Point Lake; 13 macros per 50 kg from the Torrie pipe; and 11 macros per 50 kg from DO-27.

So far, the highest-ranked target within the Lac de Gras region appears to be 93J (BHP-Dia Met), which returned 155 macros and 259 micros from 60.5 kg of core, or an astounding 128 macros per 50 kg. The Dia Met-BHP team has six other kimberlites which rank higher than Point Lake in terms of macros recovered per 50 kg of kimberlite.

It should be pointed out, however, that the economic potential of any kimberlite can only be determined by bulk-sampling programs which provide information on grade (carats per 100 tonnes), quality, and size distribution. A lower-grade pipe with a high percentage of gem-quality diamonds could easily outvalue a high-grade pipe with a low percentage of gems. The Tanqueray-Fibre Klad-Mill City joint venture is already planning to start an extensive winter program in late February. This will involve bulk sampling of the Torrie pipe by large-diameter drill holes from lake ice locations and drill-testing of high-priority geochemical-geophysical kimberlite targets. Previously announced merger plans between Aber Resources (TSE) and Commonwealth Gold (VSE) are being well received by mining analysts. David James of Richardson Greenshields says the merger will create “an institutional-grade Canadian diamond exploration-development stock of substance.” The new company will have a 15% interest in the Tli Kwi Cho (DO-27) pipe, the largest interest outside of Kennecott Canada. * In other Territorial news, Mountain Province Mining (VSE) reports that microprobe analysis has confirmed the presence of G10 garnets in samples collected from its AK-CJ property. The company hopes to carry out further exploration on the property, including diamond drilling, in January, 1994. Manitoba

* During the past few weeks, several companies have been quietly adding to their land positions in the province. Much of the activity has focused been in the Snow Lake area, near Wekusko Lake, where a known kimberlite is present, and in the southeast. Staking in the south was spurred by the recently released till survey by the Geological Survey of Canada. Companies with large land positions include SouthernEra Resources (TSE), Australian-based CRA and Saskatchewan-based Shannon Oil.

Ontario and Quebec

* Exploration Orbite V.S.P.A. (ME) is carrying out an airborne geophysical survey and basal till sampling on its 287 claims in the Le Tac Twp. area of northwestern Quebec. Followup drilling will be carried out in the new year. The current program is being partly funded by Chesbar Resources (ME), which can earn a half interest.

* Citadel Gold Mines (TSE) has staked additional ground in McMurray Twp., near Wawa, Ont. The new claims are close to the recently announced alluvial diamond find in the Michipicoten River Basin.

Prior to the diamond discovery, the company was exploring several gold properties in the area. Citadel is planning a work program on their holdings in 1994.

Overseas

* Desperate for hard currency, the Russian government is selling uncut gem diamonds, from its Treasury stockpile, directly to dealers in Belgium. This sale is in direct violation of its marketing agreement with De Beers Consolidated Mines, which controls more than 80% of the world’s diamond market. Apparently, in the past two weeks, US$40-$80 million in diamonds have been leaked to the West.

* TNK Resources (CDN) has been awarded exploration licences covering 2,843 sq. km in the southwest portion of Botswana. The licences are known as the Middlepits Prospect.

The property is localized between two diamondiferous kimberlite swarms and covers a major northeast-trending structure which hosts the Jwaneng and Venetia diamond mines. Large numbers of indicator minerals and a small diamond-bearing pipe are present on the Prospect. A 29-ton bulk sample collected from the pipe by De Beers in 1977 yielded 13 small macrodiamonds totaling less than one carat.

* Three Canadian companies are seeking rights to a further 2 million acres in the Ukraine considered prospective for diamonds. Prior Resources (ASE), SouthernEra Resources and Consolidated Newgate Resources (VSE) previously announced an agreement with the Ukrainian State Geological Company for the exclusive rights to explore 3 million acres. State geologists had previously discovered four kimberlites (one with micros), and outlined a further 33 pipes which, because of a lack of funds, were not tested. Prior and its partners intend to provide funding to expand this program. Prior President Dalton DuPasquier said these targets may have some similarities to kimberlites in the Arkhangelsk district of Western Russia.