Pure Gold to raise $3.3 million

Credit Lyonnais Laing, the London-based bank that has financed Lytton Minerals (TSE), Mill City Gold Mining (ASE) and Texas Star Resources (VSE) in their quest for diamonds, has agreed to provide Pure Gold Resources (TSE) with $3.3 million through a private placement of special warrants.

The new investment represents a shift in focus for Credit Lyonnais, which, until now, has endorsed prospects immediately north of the Point Lake discovery in the Northwest Territories. Pure Gold’s current exploration is concentrated 90 miles west of Point Lake on the Humpy Lake, Winter Lake and Jolly Lake claims.

Some have dubbed the trend that runs northwest-southeast through Pure Gold’s property “Corridor of Hope #2” (that is, the western cousin of the dyke swarm “corridor” that appears to control kimberlite occurrences north and south of the Point Lake discovery). The hope is that a second diamond field will be established along this new trend.

Pure Gold shares its ground with Winslow Gold (VSE), Atna Resources (VSE) and Island-Arc Resources (VSE). Ashton Mining can earn an interest in specific kimberlites by financing drilling.

Recent analysis by Ashton on pyrope garnets recovered from samples collected on the Humpy Lake property suggests the garnets are derived from diamondiferous bodies, says Pure Gold.

The samples were analyzed by nickel thermometry. By measuring nickel content, this method calculates the temperature of the pyrope garnets at the time they were picked up by the host kimberlite/lamproite. The temperature can then be converted to a depth and compared with the diamond stability field. Garnet concentrates from diamond-rich kimberlites show marked peaks in the temperature range that defines the “diamond window.”

Subject to Toronto Stock Exchange approval, Credit Lyonnais will buy five million special warrants at 66 cents per warrant on or near May 5. Each special warrant will be exercisable into one unit of Pure Gold at any time. Each unit will consist of one common share and half a warrant and each full warrant may be exercised at 90 cents during the 9-month period following the exercise of the special warrants.

In other diamond developments in the Northwest Territories:

— Samples taken from the Aylmer Lake property, 40 miles southeast of the Point Lake discovery, contain diamond indicator minerals, including pyrope garnets, chrome diopsides, chromites and ilmenites, reports Barexor Minerals (ME).

The till samples were collected from 24 targets on the 33,000-acre property. Microprobe work is under way at the University of Saskatchewan and preliminary results (titanium-rich G3, G5, G8 garnets, subcalic diopsides and chrome diopsides) indicate a kimberlite/eclogite source.

— Etruscan Enterprises (VSE) has negotiated a $520,000 private placement, including 325,000 shares at $1.60 and 325,000 warrants. The warrants will be exercisable at $1.60 per share until April 21, 1994, and during the following year at $1.84.

— A 650-line-km airborne geophysical survey is under way on the Alymer Lake prospect south of Lac de Gras, reports Teryl Resources (VSE). Ground geophysics is also in progress on the Amad claims within the Dia Met-BHP claim block. Drilling is expected to start in early May.

Saskatchewan

— Belore Mines (ASE) has entered into an agreement with Morgain Minerals (VSE) to acquire a 25% interest in 12,000 acres in the Molanosa Arch area of northern Saskatchewan in exchange for shares. Belore can earn an additional 25% by spending $300,000 on exploration by April 30, 1996.

— Canadian Entech Research (VSE) has exercised its right to acquire a 50% interest in 19 claim blocks in the Molanosa Arch region from Consolidated Pine Channel Gold (VSE). Several bull’s-eye magnetic anomalies have been identified there.

— War Eagle Mining (VSE) has increased its position in the Fort a la Corne area to 130,000 acres covering 96 aeromagnetic anomalies.

Quebec

Storimin Exploration (ASE) and WisCan Resources (TSE) have acquired 170 claims in 20 separate blocks near Le Tac Twp. Le Tac kimberlite, held by Explorations Miniere du Nord (ME), contains a microdiamond and G10 garnets. — Goldhunter Explorations (ASE) has acquired three separate magnetic targets near Le Tac.

Overseas

— Cliff Resources (TSE) has completed a private placement of seven million shares at 15 cents per share. Proceeds will be used to exercise an option on the Philips Range diamond project. Cliff may earn up to 30% in the Western Australian property by spending $4 million over two years. About $14 million has been spent on the project to date.

— Naxos Resources (ASE) has entered preliminary agreements for the purchase of Inversiones Dos Cerros, a Venezuelan company with mining rights on a gold and diamond concession in southeastern Venezuela.

Diamonds recovered from the property are mostly of gem quality, including a 26.5-carat stone.

— Sikaman Gold Resources (TSE) and partner Sherwood Corp. have been issued a 5-year mining permit on a 500-square-km concession on the southern portion of the Mouka Ouadda plateau in the Republic of Central Africa. Noront Resources (VSE) has completed an agreement to acquire a nearby 250-square-km concession. — Wye Resources (CDN) says diamonds recovered from its concessions in Zaire are being cut and polished for sale and are expected to net 2 cents per share. The company is arranging financing for a second-phase program.