More about diamonds (April 19, 1993)

Canadian companies are busy exploring for diamonds across the country: Northwest Territories

A 950-line-kilometre survey will get under way in mid-April on the Hackett River property owned 54% by Cominco (TSE) and 46% by Etruscan Enterprises (VSE). A drilling program supervised by consulting geologist Wayne Johnson is expected to be started up in June.

The property has both base metal and diamond potential.

Partners Garden Lake Resources (VSE) and RJK Explorations (ASE) are conducting an airborne geophysical survey on the 414,185-acre Warburton Bay property.

Chromites found in two of 20 overburden samples collected on the 51,831-acre Contwoyto property of Acadia Mineral Ventures (TSE) and Kingswood Resources (ASE) are derived from kimberlitic sources, a recent microprobe analysis has confirmed. A full-scale sampling program to locate the kimberlite pipes has been recommended.

Kingswood recently acquired a 100% interest in a 3,150-acre property just north of Lytton Minerals’ large claim block. Circular magnetic features up to 1,500 ft. in diameter have been identified on the property by airborne geophysics.

Pyrope garnets found on the Humpy Lake property last year are derived from diamondiferous bodies, William Griffin, Chief Research Scientist at the CSIRO division of exploration geoscience in Australia, has told partners Ashton Mining and Pure Gold Resources (TSE). Griffin used proton microprobe analysis and nickel thermometry, an analytical tool developed to predict the diamond potential of kimberlites, to analyze the garnets.

The Humpy Lake property, where an airborne geophysical program is ongoing, is a joint venture between Pure Gold (33.3%), Winslow Gold (VSE), Atna Resources (VSE) and Island-Arc Resources (VSE).

Alberta

Takla Star Resources (ASE) has closed a private placement of one million units at 51 cents per unit. Each unit consists of one share and one warrant exercisable at 95 cents per share until Dec. 31, 1993.

A portion of the net proceeds of $810,000 will be used to evaluate the company’s four million acres of ground in Alberta in preparation for negotiations with potential joint venture partners.

Ontario and Quebec

Athlone Resources (VSE) has granted Trade Winds Resources (VSE) an option to acquire a 50% interest in five properties along the Timiskaming Fault north of Kirkland Lake.

Trade Winds has made an initial payment of $7,500 and will earn its interest by spending $125,000 by Sept. 30 and making additional payments during a 2-year period.

Ground geophysics to follow up airborne anomalies detected on the property will be followed by reverse circulation drilling.

If a limited drill program currently under way on the James Bay Lowland properties controlled by partners KWG Resources (ME) and Continental Precious Minerals (ME) returns “satisfactory”results, Ashton Mining has agreed to earn a 51% interest in the project.

Under the terms of the agreement, Ashton will spend a total of $3 million during a 3-year period to earn a 50% interest in the pipes it chooses to explore further. By arranging mine financing, the Australian diamond miner can earn an additional 1% interest in the pipes.

Panthco Resources (CDN) has increased its land holdings in the Kirkland Lake area to 3,640 acres by optioning a 60% interest in 40 contiguous claims in the southwest corner of Hearst Twp.

The Benson Creek property is intersected by faults associated with the Timiskaming Fault. At least three circular magnetic anomalies are located on the property, which lies in the south part of an area with a high concentration of pyrope garnets.

On Panthco’s Mary Ann property to the north, Sudbury Contact Mines (TSE) has confirmed that a core sample recovered from a kimberlite dykelet contains G-9 garnets.

Panthco expects to raise a minimum of $78,000 and a maximum of $124,631 through a recent rights offering.

Temisca Resources (ME) has acquired three claim groups covering four high-priority diamond targets in the Kirkland Lake and Guigues Twp. areas. The company says a $200,000 financing has been arranged and exploration is scheduled to get under way on the “Mirror Image diamond project”in May.