Monopros spurs diamond play in Saskatchewan

Cash-rich diamond explorer Monopros confirmed recently that it will earn a one-third interest in the Fort a la Corne project of Cameco (TSE) and Uranerz Exploration and Mining near Prince Albert, Sask.

The traditionally secretive company verified the details of the joint venture agreement after one of its mobile bulk-sample treatment plants was spotted on a back road just outside Saskatoon.

According to local sources, two reverse circulation rigs are turning on the property on a 24-hour-a-day basis as operator Uranerz, a wholly owned subsidiary of Uranerzbergbau of Germany, evaluates up to 70 potential kimberlite pipes. Roads have been bulldozed to several targets and an estimated 300 tons of material has been sampled.

Last year, a 200-ton bulk sample taken from 15 kimberlite pipes on the property returned 160 macrodiamonds. This year’s drilling program will focus on the biggest, most prospective pipes.

In return for its one-third interest, Monopros is contributing expertise and funding for the project. In the late 1980s, the De Beers subsidiary spent $150,000 investigating targets on a nearby property but abandoned the search after the Sturgeon Lake kimberlite was deemed uneconomic.

In a related development, Rhonda Mining (ASE) has staked an additional 392,000 acres, mainly in the Fort a la Corne and Carat River regions, but also around Sturgeon Lake, Sask.

Rhonda, which is about to begin drilling five kimberlite targets under joint ventures with Claude Resources (TSE) and Aaron Oil (ASE), now has interests in 814,000 acres of ground.

Meanwhile, Aber Resources (TSE), Commonwealth Gold (VSE) and SouthernEra Resources (TSE) say drilling will begin on a number of targets in the Lac de Gras area of the Northwest Territories by the end of the month. The partners say at least 30 priority targets have been identified within 30 miles of Dia Met Minerals’ (VSE) original diamond discovery. Indicator minerals, including peridotitic and eclogitic garnets, chrome diopside and chrome spinels, are associated with a number of the anomalies. Kennecott Canada has the right to earn 60% of both SouthernEra’s and Aber’s interest in two blocks of claims that cover the drill targets. The summer field season in the Lac de Gras area is now drawing to a close, and most of the ground crews have broken camp as winter weather descends on the Territories.

In another development, Dia Met Chairman Charles Fipke and President James Eccott, along with South African diamond specialist John Gurney, have joined the board of Canadian Overseas Exploration (VSE). To help finance Canadian Overseas’ diamond recovery project off the coast of Namibia, Fipke is expected to buy warrants of the company.

Other diamond news from around the world includes:

— A 12-hole drilling program was recently completed on the American, Kimberlite and TK-1 diamondiferous lamproite pipes adjacent to the Crater of Diamonds lamproite in Arkansas by a consortium of companies. Texas Star Resources (VSE) has the right to acquire Diamond Exploration, a member of the consortium, subject to regulatory approval. Continental Precious Minerals (ME) has a 25% back-in interest in the Crater of Diamonds project and a 10% back-in interest in the American, Kimberlite and TK-1 pipes. — Kingswood Resources (ASE) has agreed to acquire four lots containing a diamond-bearing kimberlite pipe at Ile Bizard, nine miles west of Montreal. Kingswood plans to bulk sample the pipe, which yielded 10 microdiamonds in the late 1960s for former owner Monopros and two macrodiamonds for subsequent owners. The property overlies the Royal Montreal Golf Club, but golfers have apparently given claim stakers permission to stake the four lots. — Kalahari Resources (VSE) plans to increase its landholdings in the Lac de Gras area to 1.07 million acres by completing a property unitization agreement with six other companies holding ground in the area. — An affiliate of Reunion Mining has discovered two new kimberlites in Zimbabwe, about 180 miles west of Harare. Detailed mapping on both kimberlites is now under way, and additional anomalies in the area are being investigated. Reunion is 49% owned by Caledonia Mining (TSE). — De Beers’ Venetia open pit mine in South Africa was officially opened last month. The diamond mine is expected to be the country’s largest diamond producer, with an annual yield of five million carats, when it reaches full production this December.