More about diamonds (February 08, 1993)

Canadian mining companies are involved in the search for diamonds both at home and abroad:

N.W.T. and Alberta — Minerais Barexor (ME) and Nevsun Resources (VSE) have reached an agreement whereby Nevsun can acquire a 50% interest in four claim groups on Barexor’s Aylmer Lake diamond property near Lac de Gras, N.W.T. To earn a 50% interest in the property, Nevsun must spend $250,000 on exploration within two years, make a cash payment of $30,000 and issue 200,000 shares.

— To satisfy the terms of an option agreement, Mill City Gold Mining (ASE) must raise $750,000 for exploration on ground held by Fibre-Klad Industries (ASE) and Tanqueray Resources (ASE) north of Lac de Gras by March 31, Mill City spokesman Jim Brown says.

— Three juniors with ground near Lac de Gras — Amarado Resources (VSE), Golden Lake Resources (VSE) and Kestrel Resources (VSE) — have decided not to proceed with a proposed amalgamation.

— Takla Star Resources (ASE) says heavy minerals indicative of diamond-bearing lamproite sources have been found on its Ram River and Edmonton properties in Alberta.

Arkansas

— Texas Star Resources (VSE) is planning a private placement of 2.5 million units at $3.25 per unit to finance exploration and development of the company’s diamond properties in Arkansas and the Northwest Territories. Each unit consists of one share and one warrant to purchase an additional share at $4.50 for a period of 18 months.

Texas Star recently ordered a 50-tonne-per-day bulk-sampling plant from South Africa for work on its Arkansas pipes. Continental Precious Minerals (ME) has the right to repurchase, depending on the property, a 10-25% interest in Texas Star’s ground.

Saskatchewan

— Richard Garnett, a geologist with 33 years of experience in exploration and mining, has been hired by Aaron Oil (ASE) and Guardian Communication Industries (VSE) to supervise their exploration projects.

— Canadian Entech Research (ASE) has been granted the option to purchase the right to a 50% interest in the Molanosa Arch diamond project of Consolidated Pine Channel Gold (VSE). To exercise its option, Entech must make a cash payment of $75,000 and issue 100,000 shares. A total of $275,000 must be spent on the property before June.

Ontario and Quebec

— Glen Auden Resources (CDN) has acquired two more groups of claims encompassing circular airborne anomalies in Moody Twp., near Kirkland Lake, Ont.

— Gwen Resources (ASE) has completed a private placement of $659,000 flow-through shares. Proceeds will be used to explore diamond and gold properties near Kirkland Lake, where Gwen holds almost 1,000 claims. — Joutel Resources (TSE) has entered into an option agreement to acquire five claim groups southeast of Kirkland Lake. To earn a 100% interest in the property, Joutel must issue 100,000 treasury shares, make a $6,000 cash payment and issue a 1% royalty.

— Murray Pezim’s Goodgold Resources (VSE) is negotiating to acquire claims in Morrissette Twp., Ont.

— Wheaton River Minerals (TSE) has intersected kimberlite at its Morrissette Creek property. A sample is on its way to Lakefield Research for treatment. Wheaton and Strike Minerals (CDN) have optioned their nearby Arnold Twp. property to Cane Corp. To earn a 60% interest, Cane must pay Wheaton $6,000, and 60,000 shares and spend $200,000 on exploration over 30 months. — KWG Resources (ME) has staked 63 claims in Rivard and Montigny twps., south of Mont-Laurier, Que., based on the findings of the Quebec Geoscientific Centre.

— North American Rare Metals (ME) is staking at an undisclosed location in Quebec. At its next annual meeting, the company will seek approval for a 1-for-5-share consolidation.

Overseas

— Subject to regulatory approval, Cornucopia Resources (TSE) has acquired a 90% interest in a 2,700-acre gold and diamond concession on the Birim River in the Republic of Ghana. The remaining 10% interest is held by the West African country’s government.

Cornucopia expects to launch a prefeasibility program on the property later this month.