A 459-carat parcel of diamonds from the Foxtrot property in north-central Quebec has returned a modelled value of US$88 per carat for
The stones were derived from a 664-tonne sample of the Renard 2, 3, 4, and 65 kimberlitic bodies. All the diamonds exceed 1.03 mm. The two priciest octahedral crystals were recovered from Renard 3 and weigh 4.3 carats and 2.30 carats. The stones are valued at US$1,551 and US$1,308 per carat.
The modelling, by WWW International Diamond Consultants, pegged the entire parcel’s minimum value at US$76 per carat and its high value at US$104. The statistically derived values are based on the size-frequency distribution of the diamonds in the parcel, the valuation for each size class, and the estimated current values per size class for larger-size stones that were not fully represented in the parcel.
WWW concludes it is unlikely the average price for run-of-mine production from the four bodies would be under US$76 per carat, based on current prices. The consultant says the US$104 value is not unreasonable, even given the small size of the parcel.
WWW, Rio Tinto Diamonds (an affiliate of Ashton’s 52.2% shareholder
WWW believes its modelled value is more accurate, owing to the small size of the parcel.
Meanwhile, 34 core holes completed on Renard 2, 3, 4 and 9 this past winter have boosted the tonnage estimates for kimberlite bodies 2, 3 and 9.
At Renard 2, drilling outlined an additional 1.9 million tonnes of kimberlitic material, bringing the body’s estimated size to 4.2 million tonnes, or 84% larger than at the end of 2004. The work entailed extending a previous hole to a depth of 370 metres, where it was terminated while still cutting kimberlite. The hole represents the deepest intersection at Renard 2 so far.
The drilling also identified 1.8 million tonnes of “peripheral breccia” not included in the revised tonnage estimate. That material comprises kimberlitic breccia with variable country rock containing more than 10% kimberlitic material. Further investigation is required to determine the breccia’s diamond content and potential economic significance.
A 173-tonne bulk sample of Renard 2 in 2004 yielded an estimated diamond content (of diamonds greater than 1.18 mm) of 92 carats per hundred tonnes (cpht).
At Renard 3, drilling added 300,000 tonnes, or 21%, to boost the size estimate to 1.7 million tonnes. An extended hole there returned the deepest kimberlite intersection so far at a depth of 360 metres; the hole was terminated in kimberlite. A previous, 155-tonne sample from the body yielded a diamond content of 123 cpht.
Meanwhile, drilling failed to add to the 6 million tonnes of kimberlitic material contained in Renard 4.
Some 50 metres to the south, at Renard 9, drilling turned up a new kimberlitic zone around 250 metres below surface; follow-up drilling is planned. The winter drilling program also resulted in an initial size estimate of 2.4 million tonnes for the kimberlite, which measures 160 metres long by 25-55 metres wide.
In March, a 6-tonne sample from Renard 9 yielded an estimated diamond content of 92 cpht. The haul included a 3.26-carat stone. A second 6-tonne sample collected during the winter has been sent for processing by dense media separation; results are expected by the end of the second quarter.
In all, Renard 2, 3, 4, 65, and 9 are now estimated to contain 22.4 million tonnes of kimberlitic material, up from an estimate of 17.7 million tonnes at the end of 2004.
Looking ahead, the partners intend to evaluate various mining plans for the project’s Core Area (pipes 2, 3, 4, 65, 8 and 9), based on the current modelled diamond values and tonnage estimates. The partners are also considering collecting a larger bulk sample in 2006, as well as mini-bulk sampling aimed at pinning down the diamond content of Renard 8 and 9.
In the boardroom, John Cole has replaced David Robertson, who resigned as chairman.
Be the first to comment on "Renard stones worth US$88 per carat"