MINING IN AFRICA SPECIAL — Canadian juniors active in

The hunt for diamonds in Africa has taken Canadian mining companies to more than a dozen countries in the western, central and southern areas of the continent.

Among the more popular countries, based on the number of juniors active there, are Botswana, Central African Republic (CAR), Ghana, South Africa, Tanzania and Zimbabwe. The list of other African nations which have attracted Canadian companies includes Burkino Faso, Guinea, Ivory Coast, Mali, Namibia, Sierra Leone, Zaire and Zambia.

A producer of diamonds at the River Ranch deposit in Zimbabwe, Redaurum (TSE) has expanded its hunt for gem stones into Botswana and Namibia and into another (undisclosed) southern country. The company, Canada’s first overseas diamond producer, has been exploring properties in central Botswana near the De Beers-Debswana Letlhakane mine and in the country’s southwest. In Namibia, it has been exploring an alluvial diamond prospect on the Konkiep River. Redaurum has a 50% interest in River Ranch, where output last year (the project entered production in March, 1994) was in the 150,000-carat range. Expansion work is expected to boost output to 300,000 carats per year. In the Kimberley district of South Africa, Diamond Fields Resources (TSE) is expanding production at its wholly owned Loxton Dal and Frank Smith diamond mines, each of which has a long history of production under separate private ownership. Annual production is projected to jump to 64,800 carats (from 18,000 carats) at Loxton Dal and 25,200 carats (from 10,000 carats) at Frank Smith.

At Diamond Fields’ marine diamond concession in Namibia, near Luderitz, BHP Minerals of Australia began reconnaissance drilling and sampling near the end of 1994. BHP is using its own vessel, the 123-metre Geomaster. A first-stage sampling program tested five areas and involved the drilling of 296 widely spaced, large-diameter holes. Results were encouraging.

Elsewhere on the continent, Diamond Fields has an option to develop the Koidu kimberlite project in Sierra Leone.

Another diamond producer — from marine concessions off the Namibian and South African coastlines — with a Canadian connection is Ocean Diamond Mining Holdings of Cape Town. Toronto-based Menora Resources (ME) owns an interest in the small producer, which late last year refit its vessel with equipment that could work to water depths of 150 metres.

In CAR, United Reef (TSE) continues to develop its Bamingui alluvial diamond project, where a pilot plant was commissioned in June of last year. Sampling has been undertaken along both banks of the Bangoran River, while sampling excavation work within the low-lying alluvial flats of the Bamingui River has provided material for processing at the pilot plant.

A prefeasibility study of full-scale production at Bamingui is expected to be completed during the first quarter of this year, United Reef says. About 150 km south of Bamingui, United Reef has acquired the rights to two alluvial deposits, Djourou and Aigbando, uncovered by French colonialists in the early 1960s. The company has optioned a 40% interest to Belore Mines (ASE).

In Botswana, Southern Africa Minerals (ASE) reported the start of an 80-hole exploration program on four licences. First to be drilled were 20 targets on the Molopo licence. Also active in the country are Botswana Diamondfields (VSE), whose land holdings there comprise 10,200 sq. km., and the partnership of Fancamp Resources (ME), Scintilore Explorations (TSE) and Solidor Resources (VSE) at a pair of projects.

PBX Resources (VSE), which suspended negotiations on a property deal in South Africa last year, has optioned two alluvial diamond and gold concessions in Ghana from Carlin Resources (VSE). Elsewhere in Ghana, St. Jude Resources (VSE) reports that it is set to begin a bulk-sampling program at its Birim River alluvial diamond prospect.

In Tanzania, Serengeti Diamonds (VSE) is earning a 40% interest in East Africa Diamond Exploration, which owns the rights to 14.9 million hectares of diamond leases and licences; production testing at the Kahama project is under way.