Repadre revises diamond deal

A joint venture covering diamond exploration between Repadre Capital (VSE) and AMPAL in Botswana has been revised to allow Repadre to earn a 50% interest in the venture.

Initially, Repadre agreed to spend $2 million to earn a 40% interest in the venture from its Botswana-based partner. To date, about $1.2 million has been spent on exploration. AMPAL is the operator. The pair is searching for diamonds in an area about 850,000 hectares in size.

In South America, South American Goldfields (TSE) recently began sampling paleo gravel deposits in the Mazaruni River basin in Guyana. The work is aimed at evaluating the diamond and gold content of the holdings.

The property was initially acquired by Golden Star Resources (TSE). Late in 1990, South American entered into a farm-in agreement with Golden Star whereby the former could acquire two million shares of Golden Star and a 65% working interest in the property for $4 million.

In Western Canada, scientists are reported to be at work at a Saskatchewan Research Council laboratory trying to extract gems from host rock kimberlite. A newspaper report said Cameco (TSE) and Uranerz Exploration and Mining helped to fund the laboratory. The Fort a la Corne property of Cameco and Uranerz near Prince Albert, Sask., provided kimberlite samples last year which yielded four diamonds.

Meanwhile, De Beers Centenary reported that sales of rough diamonds by the Central Selling Organization (CSO) during the first six months of 1991 amounted to US$2.1 billion, some 16% lower than for the same period last year but 23% higher than for the last half of 1990.

De Beers said that sales during the second half of 1990 were adversely affected by tensions created by the Persian Gulf conflict. It added that the war and its aftermath have also had a negative impact on rough diamond sales, particularly to Israel, during the first half of this year.

Another problem area this year, De Beers said, has been India, where CSO clients have experienced troubles in obtaining foreign exchange for purchases of rough diamonds.

De Beers Centenary of Switzerland is responsible for the foreign activities of De Beers of South Africa. The CSO is basically a group of diamond-trading companies controlled by De Beers.