MINER DETAILS — Cold water on diamond fever

Diamonds being “the only game in town,” Vancouver brokers turned out in droves for a recent presentation on diamond exploration in North America, featuring talks by Christopher Jennings and others active in this new venture.

Conspicuously absent was anyone from Dia Met Minerals, the junior that made the diamond discovery in the Northwest Territories’ Lac de Gras region. With a stock price of $16 and the backing of BHP Minerals Canada, Dia Met no longer has to convince anyone it is serious about diamonds. Neither does Jennings, a diamond expert who is guiding the efforts of Aber Resources and SouthernEra Resources.

More recent players that lack in-house expertise or a senior partner face a tougher time. And their ability to promote properties in the Lac de Gras area is not being made easier by Dia Met’s Charles Fipke, who says sampling work he has done in recent years has eliminated as prospective all ground except that which the company has staked.

Jennings says this conclusion is “beyond the realm of imagination,” as the area is simply too large to be condemned. Although his companies are picking up diamond prospects in other areas, Jennings views Canada’s North as ripe for new discoveries and says certain areas have “the best mineral chemistry” he has seen anywhere in the world.

Others have questioned Fipke’s motives for pouring cold water on the area play by pointing out that misinformation is part of the diamond business. (This gets confusing. Does it mean companies active on Somerset Island are out of or in luck because Fipke has sampled there too?)

In any event, it will take time before new discoveries are made by serious players. De Beers won’t say much, Kennecott is just getting going and summer is almost over. And everyone — except Dia Met and the majors — faces long waits to receive sampling results.

Dia Met is being realistic rather than mean-spirited when it says that most juniors are on a steep learning curve. Already reports have surfaced that some have aborted summer programs because of difficulties in collecting and interpreting samples.

But all is not gloom. If worst comes to worst, and no more diamonds are found, the current boom may uncover a significant gold or base metal deposit in the North. And if Jennings is right, in 10 years we could have new diamond mines and a new generation of diamond experts who are able to raise money for exploration and mine development. Sounds like De Beers’ worst nightmare.