New staking beats previous records at Lac de Gras

One of the biggest staking rushes in North American history gathered momentum recently as crews representing junior and senior mining companies from across the continent flew in to claim more ground in the Lac de Gras region.

Since BHP-Utah Mines and Dia Met Minerals (VSE) issued the results from a diamond testing plant in Colorado, expediters have picked up 1,762 mineral tags from the mining recorder’s office in Yellowknife, N.W.T. “We use that as an indicator that the rush is back on,” said chief recorder Karen Klassen, who says that the number of tags picked up in five days after the announcement far outstrips the number sold in any month since diamonds were reported on the Dia Met claims last November.

A sharp increase in the share prices of the main players in the diamond hunt also helped to support predictions that Lac de Gras could easily outstrip the Eskay Creek and Hemlo gold rushes in terms of speculative activity. Aber Resources (TSE) and SouthernEra Resources (TSE) both shot up to new highs while Dia Met maintained its recent gains.

As companies have 60 days from the date of staking to register their claims, Klassen was unable to say who in addition to the four companies already involved in the play is staking more ground.

But she said one of the local expediters hired by a single mining company had picked up a batch of 400 tags from her office, and at the latest count, almost 10 million acres have been staked.

The latest flurry of activity was sparked by confirmation that a 160-ton sample extracted from a kimberlite on the Dia Met-BHP property contains gem quality diamonds. The diamonds in the sample collectively weigh at least 90 carats.

While a BHP spokesman refused to comment, rumor has it that when exploration resumes on the discovery claims, drill crews will test one of the several kimberlites already located on the property.

The BHP spokesman declined to say when his company would be in a position to announce the value of diamonds, some of which are in the 1-3-carat range. While they wait for experts in San Francisco to complete their examination, analysts are already comparing the discovery with commercial mines in South Africa and Australia.

Meanwhile, companies that claim to have staked more ground in and around Lac de Gras include Tyler Resources, a Calgary company with property adjacent to the north of the Dia Met-BHP discovery. Tyler says it has increased its area holding to 200,000 acres by picking up a 92,000-acre claim block 35 miles further north.

Galico Resources (VSE), a member of Murray Pezim’s Prime Equities group, says it is also negotiating to acquire minerals claims in the Lac de Gras area where, according to Klassen, land is still available.

Vancouver-based junior companies that have joined the hunt include Winspear Resources (VSE), which holds a direct interest in 54,000 acres with a block of ground 30 miles southwest of the Dia Met-BHP discovery. Winspear says the block is sandwiched between two blocks held by De Beers subsidiary Monopros. Bellex Mining (VSE) has also picked up ground in the area.

Tanqueray Resources (ASE) has added to its landholdings in the area by acquiring 100,000 acres adjacent to the discovery ground. “Everyone is rushing to get the ground they want before someone else grabs it,” Klassen told The Northern Miner. Meanwhile, established claimholders, including Argus Resources (ASE), Aber, SouthernEra and Tyler, are negotiating to farm out their properties to majors like Kennecott, which can afford the expensive diamond exploration process.

According to SouthernEra President Christopher Jennings, it costs $560 an hour to hire a helicopter from one of the local expediters and exploration spending can run to $7,000 per day.

“The big guys have to be participants in the area if only for insurance purposes,” said Tyler President Glen Harper.

If companies involved can get enough surveying work completed after the ice breaks up in June, Harper believes some of them could have drill targets established by the time the winter exploration season begins.