More about diamonds (February 15, 1993)

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

N.W.T. — Aaron Oil (ASE) has terminated discussions with Monopros related to exploration on Aaron’s claims near Lac de Gras. Monopros signed a letter of intent to explore the claims last year, but an Aaron spokesman said the original intent was lost in the negotiations for a final agreement. — Calco Resources (VSE) has been granted an option to acquire a 50% interest in a 7,500-acre property south of Lac de Gras from Tako Resources (VSE). Calco can earn the interest by paying Tako a total of $120,000, issuing 200,000 common shares, and spending $130,000 by Dec. 31, 1994, and another $120,000 by Dec. 31, 1995.

— Citadel Gold Mines (TSE) has acquired the exclusive right to explore 312,500 acres on the Brodeur Peninsula on the west side of Baffin Island. The permit area covers a raised beach where diamonds eroded from nearby kimberlites, like the diamond-bearing cluster on Somerset Island, may be preferentially concentrated.

Citadel’s program, beginning in May, will consist of airborne reconnaissance along with prospecting and sampling of the beach gravels and suspected kimberlite outcroppings.

— Greater Lenora Resources (TSE) has launched a lawsuit against Winspear Resources (VSE) over the Lake Providence property west of Lac de Gras. Although Winspear terminated the option agreement earlier this year, Greater Lenora is seeking a declaration that the agreement is in good standing and binding upon the parties.

— After reviewing geophysical data from the Tundra property, Noront Resources (VSE) has identified 15 high priority targets and several secondary targets that may represent kimberlites.

— SouthernEra Resources (TSE) has completed a private placement of 303,030 units to Kennecott Canada for net proceeds of $1 million. Each unit consists of one share and one-half a warrant. A full warrant entitles Kennecott to purchase an additional share at $4.25 at any time in the next nine months. Ontario and Quebec

— Exploration Orbite (ME) recently acquired an additional 2,500 acres in Le Tac Twp., Que., to bring its total landholdings in the area to more than 8,000 acres. The company has two geologists and a technician on site. — Under a recent agreement in principle, Noront can acquire a 100% interest in a block of five claims in the James Bay Lowlands area of Ontario (Hobson and Hogg twps.), where diamond indicator minerals and several geophysical targets have been identified. Noront can acquire the claims, subject to a 10% net proceeds interest, for $12,000 cash and 100,000 treasury shares. — Sudbury Contact Mines (TSE) says it will launch a major exploration drive for gold and diamonds in the Kirkland Lake area. Under a letter of intent with the Beaverhouse Lake joint venture, including Royal Oak Mines (TSE), Queenston Mining (TSE) and Lac Minerals (TSE), Contact can explore and acquire the diamond interests on specific landholdings in McVittie and Gauthier twps.

Part of a $700,000 exploration budget will be used to drill 70 reverse circulation holes to a maximum of 300 ft.

Overseas

— Reunion Mining, 49% owned by Caledonia Mining (TSE), has launched sampling programs on concessions covering a total licence area of 6.9 million acres in Zimbabwe. On the 2.8-million acre Gwaai Area, Reunion has collected and treated 600 samples. The company is following up one large diamond indicator anomaly by detailed soil sampling, ground magnetics and electromagnetics. — Wye Resources (CDN) is raising private financing for a first-phase sampling program on four contiguous placer mining concessions in Zaire. Wye has a 50% interest in the concessions, which lie 10 km from the Angolan border.