Quebec diamond rush rolls on

Montreal-based Osisko Exploration (OSK-V) is among the latest group of companies to acquire land in the James Bay area of Quebec.

The company has acquired several claim blocks covering crystalline Archean basement, which the company says is commonly the host to kimberlite pipes. Three of the blocks totalling about 109 sq. km are near the diamondiferous kimberlitic bodies discovered by Ashton Mining of Canada (ACA-T) and Quebec government-owned Soquem in Quebec’s Otish Mountains.

Two other blocks lie about 30 km southeast of the Ashton/Soquem discovery. Another sit about 60 km to the southwest, adjacent to the Majescor Resources(MAJ-V)- BHP Billiton (BHP-N) Portage property where drilling will begin in February.

Another claim block covering about 52 sq. km, in the Wemindji area, lies immediately south of Majescor’s property. Osisko acquired the block from an independent geologist by issuing 200,000 common. The vendor retains a 1% gross proceeds royalty on the property. The deal is subject to regulatory approval. Majescor intends to drill targets located by fall 2001 ground work that uncovered additional kimberlite fragments in tills. Drilling will begin in February.

An additional 16.7 sq. km comprising 13 claim blocks were acquired within the Wemindji-La Grande area under a joint venture with Calgary-based junior Troymin Resources (TYR-V). The blocks each host isolated magnetic anomalies situated in topographic depressions and within proto-Archean tonalitic basement. The two companies will share exploration costs evenly on.

Troymin recently applied for mineral claims covering 200 sq. km in the Otish Mountains diamond area play in Quebec. Pending approval by the provincial government, these acquisitions will add to Troymin’s existing landholdings in the Wemindji area, 400 km west of the Otish Mountains.

Lastly, Osisko acquired 8 claim blocks tallying to 44 sq. km in the Mistassini area. The blocks cover isolated magnetic anomalies and are situated 30 to 50 km west of Majescor’s Mistassini project near the Otish Mountain region.

In December, Canabrava Diamond (CNB-V) signed a deal to earn a 50% interest in Mistassini. To do so, Canabrava must spend $1.35 million on exploration over three years, pay $25,000 and issue 100,000 shares to Majescor. Majescor will act as operator of the project.

Encompassing 1,216 sq. km, the property stretches from the northern tip of Lake Mistassini to the western limit of the Otish Mountains. Staking of another 494 sq. km still requires the approval of the Ministry of Natural Resources Quebec. Reconnaissance sampling by Majescor this year has turned up several kimberlite indicator mineral dispersion trains on the claims. The company says that the trains have a different chemistry and assemblage, and therefore source, than those at the Portage property also in Quebec.

Osisko plans further structural and magnetic compilations of the James Bay area with an eye toward acquiring additional properties. The company will look to raise funds, in part with Quebec institutional investors, in order to finance diamond exploration, which will begin with a spring indicator mineral survey.

Also in the Wemindji area, Masuparia Gold (MPG-V) has acquired a diamond property northeast of Majescor’s property.

The property hosts several magnetic lineaments associated with both the Sakami and Kapuskasing structures. A mafic breccia discovered on an adjoining is reportedly very similar to diamondiferous rocks in the Wawa, Ont. Area, and is characterized by zinc-rich chromite grains.

Masuparia acquired the 15-sq.-km property comprising 29 claims by issuing 400,000 shares, paying $10,000 on signing plus payments totalling $45,000 over two years. The property is subject to a 3% gross overriding royalty on any diamond or mineral production from the property. Masuparia can buy back up to two-thirds of the royalty for $2-million.

Not to be outdone, Inlet Resources (INS-V) went out and bought three nearby claim blocks from the same local prospector. Inlet’s properties lie east of Majescor’s Wemindji property.

The first block comprises 13.4 sq. km adjoining Majescor’s property to the north. The property hosts several magnetic lineaments associated with the Sakami and Kapuskasing structures, and lies between two major magnetic depressions that extend to the southeast.

Three kilometres to the south, another 4-sq.-km block sits in a complex magnetic region where both the Sakami and Otish structures intersect. The property contains several subtle magnetic anomalies that are potential kimberlite targets.

Fifteen kilometres to the east is another 11-sq.-km block containing similar subtle magnetic anomalies.

Inlet acquired the properties issuing special share purchase warrants for 100,000 common shares, plus another 600,000 shares over two years. Inlet also paid $20,000 upon signing and must pay another $90,000 over a two-year period. The property is subject to a 3% gross overriding royalty on any diamond or mineral production from the property. Inlet can buy back two-thirds of the royalty for $2-million.

Vancouver-based Skeena Resources (SKE-V) has grabbed a 70% stake in 11 diamond exploration prospect in the Otish Mountains region. Final staking confirmation is pending on four of the blocks. All told the properties tally to about 72 sq. km.

To earn its stake, Skeena issued 500,000 shares and paid $36,000 in cash to a local vendor. The remaining 30% interest, which Skeena has a partial call option under certain conditions, will be transferred to Beaufield Consolidated Resources (BFD-V), which will be carried through to a bankable feasibility study. Skeena will act as operator of the project.

Skeena also has diamond exploration project in southeastern British Columbia, where core drilling and a mini-bulk sample results from the Ice claims project at Elkford are expected mid-February. Results from drilling on two kimberlites at Weirdale in the Fort a la Corne area are expected by mid-March.