More about diamonds (April 26, 1993)

Canadian companies are exploring for diamonds both in Canada and abroad:

Northwest Territories — Lytton Minerals (TSE) has an option to earn a 51% interest in 972,000 acres held by Golden Lake Resources (VSE) and Kestrel Resources (VSE) in the Lac de Gras area. To so so, Lytton must spend $3 million during the next two years.

— Under new management, Optical Data Systems (ASE) is negotiating to a acquire a 90% interest in claims near Lac de Gras. Peter Wardel will become president and Brian Hawes will become secretary-treasurer.

— Major General Resources (VSE) can earn a 49% interest in 100,000 acres in 75 separate claim blocks from SouthernEra Resources (TSE). The claims, within the Thelon mobile belt near the southeast margin of the Slave province, cover magnetic features selected by SouthernEra for their kimberlite/lamproite potential.

To earn the interest, Major General must spend $1.8 million during three years. At least $300,000 must be spent by next April.

A second agreement allows Major General to earn a 40% interest in another 95,000 acres by spending $2.5 million during three years. Major General will operate both areas under SouthernEra’s supervision.

— Noble Peak Resources (ASE) has entered into a letter of intent with SouthernEra whereby the former will be granted an option on 80 claims covering 103,000 acres south of Lac de Gras.

Noble Peak may earn a 40% interest in the properties by spending $2 million during three years. At least $250,000 must be spent by Dec. 31, 1993. — Noront Resources (VSE) has agreed to buy and option 1.1 million acres. Some of the ground is west of the Lupin mine and some south of Lac de Gras. The junior has arranged two private placements of units at 35 cents per unit for proceeds of up to $455,000. Each unit consists of a share and a warrant to buy an additional share at 45 cents for a 12-month period. Ontario and Quebec

— Reverse circulation drilling is under way on five kimberlite targets on ground held by partners Trade Winds Resources (VSE), Cross Lake Minerals (VSE) and Cathedral Gold (TSE) in the Lake Abitibi area north of Kirkland Lake.

The geophysical targets, part of a larger cluster, are accessible by existing roads.

— Inter-Rock Gold (ME), an affiliate of Rayrock Yellowknife Resources (TSE), has acquired 20 claim blocks covering aeromagnetic targets in the James Bay Lowlands. Inter-Rock will complete an airborne survey followed by ground magnetics.

— Tandem Resources (ME) is acquiring ground at an undisclosed location in northern Ontario and is negotiating a private placement of one million shares, with warrants attached, at an undetermined price per share. — Lyon Lake Mines (ME) has staked 5,000 acres in Gaboury Twp., Que. The Lac de Bois property was selected after a government reinterpretation of a previous aeromagnetic survey. A number of circular magnetic anomalies have been identified.

— Strike Minerals (CDN) has entered into a joint venture with Davidson Tisdale (TSE) on its Guerin Twp. property, three miles northeast of Guigues Twp., Que. Strike says the Guerin target has a signature almost identical to the Guigues kimberlite, where preliminary sampling uncovered a macrodiamond. Davidson Tisdale can earn 60% in the property by making payments of $110,000, issuing 100,000 shares and spending $160,000 on exploration during the next two years.

Overseas

— After failing to raise enough money to retain its share of an alluvial concession in Namibia under a joint venture with Benguela Concessions, Canadian Overseas Exploration (VSE) is optioning a nearby diamond concession. The offshore property covers 46 square miles directly opposite two of De Beers’ onshore diamond operations — Koingnaas and Mitchell Bay. Canadian Overseas and partner Ascot Resources (VSE), of which Ronald Netolitsky is a director, will pay $1 million to earn a 49% interest.

Ascot will become the operator and fund the first $1.2 million of exploration work. Once a mining lease has been granted, Ascot and COE will have the right to earn the remaining 51% interest from the owner for a further $1 million. — Partners SouthernEra, Stow Resources (VSE), Dryden Resource (VSE) and Beckleigh Investments say exploration drilling east of the Leicester pipe in South Africa has intersected a kimberlite of unknown dimensions. Meanwhile, the partners have begun testing a bulk sample from the Leicester pipe. The on-site diamond recovery plant is to reach capacity by month-end.