Pure Gold pins hopes on possible new cluster

Management at Pure Gold Resources (TSE) believes the company could be sitting on a new kimberlite cluster after discovering pyrope garnets on its Humpy Lake property, 145 km west of the diamond-bearing Point Lake pipe.

The pyrope garnets, a common indicator mineral for kimberlites, were recovered from 20 of 21 esker and till samples taken on the claims, representatives of the company told investors at a packed annual meeting held in Toronto recently.

Government aeromagnetic maps show 7-8 anomalies on the property that could represent kimberlite sources.

Pure Gold, whose technical adviser is Australian diamond producer Ashton Mining, argues that the discovery of indicator minerals such a long way from Point Lake suggests they are derived from a separate cluster. Globally, kimberlites tend to occur in clusters containing 4-150 pipes. Several major clusters separated by distances of hundreds of kilometres occur in the diamond-producing regions of Southern Africa and Siberia. “Ashton feels that there are a number of clusters in the Lac de Gras area,” noted Pure Gold geologist Nelson Baker. He said Ashton rejects the theory that the Lac de Gras group of pipes is the sole source of a 750-km indicator mineral train traced from west to east by Dia Met Minerals’ (TSE) Charles Fipke. Garnets, the most resistant of the indicators, would break down over much shorter distances of 100-125 km, he said.

Ashton, which has a 40% interest in the Argyle diamond mine in Australia, was not represented at the meeting.

Ashton is currently completing further detailed analysis of the garnets from the 50,000-acre Humpy Lake property, a joint venture of Pure Gold (50%), Winslow Gold (VSE), Atna Resources (VSE) and Island-Arc Resources (VSE). The major diamond producer has agreed to provide

technical guidance to Pure Gold in exchange for an option on any diamond properties in which Pure Gold has an interest.

With $1.5 million in its treasury, Pure Gold will finance grassroots sample collection and geophysical surveys. Ashton has the option to fund target evaluation, drilling and sampling from any kimberlite discovered. At the meeting, shareholders approved the issuance of 2.5 million additional common shares and warrants. The company now has about 30 million shares outstanding.

Meanwhile, SouthernEra Resources (TSE) has raised $4.73 million for diamond exploration through a private placement of 1.55 million units consisting of one share and one half a warrant.

— For additional diamond exploration coverage, see Page 6.