Staking in Alberta for diamonds could rival Lac de Gras

The diamond rush in Alberta may soon rival the Northwest Territories play in terms of surface area if land acquisition continues at current levels.

The Alberta land grab now covers an estimated 12 million acres, said Christopher Jennings, president of diamond explorer SouthernEra Resources (TSE), at a recent Toronto luncheon sponsored by the Canadian Institute of Mining, Metallurgy and Petroleum.

By comparison, the Lac de Gras play in the Northwest Territories covers an estimated 15-20 million acres.

One of the largest landholders in the province is Monopros. Since acquiring 1.5 million acres in the Peace River area in 1990, the De Beers subsidiary has conducted extensive geophysical and heavy mineral sampling. Results have yet to be released.

This summer, Cameco (TSE) formed a joint venture with Dia Met Minerals (VSE) to explore a 1.5-million-acre block adjacent to Jasper National Park. Spokesman Rita Mirwald said Cameco, as operator, has just sent a 2-man crew to the area.

Other companies acquiring ground in Alberta include Takla Star Resources (ASE), with 2.3 million acres next to the Cameco-Dia Met joint venture; Rich Minerals (ASE), with 300,000 acres in southeastern Alberta; and New Claymore Resources, with 173,000 acres next to Takla’s claims.

More recently, Ridgeway Petroleum (VSE), led by Calgary oil man Walter Ruck, applied for 450,000 acres in two permits adjacent to the Monopros ground. The permits cover a portion of the Peace River Arch, a major structural feature with several faults that may have acted as conduits for kimberlite intrusions. One of the main reasons behind the flood of activity in Alberta is the recent decision by the provincial government to waive a $10-per-hectare deposit on exploration permits (T.N.M., Sept. 21/92).

In other diamond developments:

— A total of $700,000 will be spent to investigate the diamond-bearing C-14 pipe near Kirkland Lake, Ont., before March, 1993, following a recent agreement between KWG Resources (ME) and Regal Goldfields (CDN). KWG can earn a 50% interest in the C-14 pipe by spending a total of $2 million by Feb. 28, 1994. KWG can also earn a 50% interest in the nearby B-30 pipe by spending $1 million before March 31, 1994. Regal will be granted 100,000 KWG shares.

The two pipes have returned a total of 11 macrodiamonds — some of gem quality — including one weighing 0.17 carats.

— Partners Aaron Oil (ASE) and Rhonda Mining (ASE) plan to drill seven 500-1,000-ft. holes into and around a magnetic ring structure on their joint venture ground near Sturgeon Lake, Sask., during the first week of October. At least two of the holes will be collared on lands optioned from Claude Resources (TSE). Rhonda plans to drill an additional four holes near Fort a la Corne, Sask.

Following recent staking in the Fort a la Corne, Pasqua Hills and Sturgeon Lake areas, Aaron now has interests in 1.01 million acres, including 700,000 acres held with Rhonda under a 20-80% joint venture.

— Cyclone Capital (VSE) has agreed to earn a 100% interest, subject to certain back-in provisions, in all of Cominco’s (TSE) diamond properties on Somerset Island, N.W.T., plus claims covering individual kimberlite pipes on Brodeur Peninsula and Bathurst Island. To earn the interest, Cyclone must make a payment of $60,000, issue 450,000 shares and fulfil work commitments totalling $1.15 million over three years.

At any time before the feasibility stage, Cominco can either take a 2% net smelter royalty or back-in to a 50% interest in these claims by doubling Cyclone’s expenditures.

Cyclone has also granted Cominco the right to earn a 50% interest in present and future claim holdings on Somerset Island. Cyclone now controls the 87 claims covering the Batty kimberlite occurrences where microdiamonds and indicator minerals have been identified.

— Kalahari Resources (VSE) says surface sampling results from its 550,692-acre MacKay Lake project in the Northwest Territories are expected by the end of October. Joint venture partner Kennecott Canada has collected a total of 37 esker, nine beach and 126 till samples on the property to date. Some of the till and beach samples were taken to follow up results of an airborne geophysical program that identified 24 magnetic and/or electromagnetic anomalies.

— Under a revised letter of intent, Texas Star Resources (VSE) will receive a 24.5% interest in Continental Precious Minerals’ (ME) 49% remaining interest in the BP-Continental joint venture in the James Bay Lowlands. In exchange, Continental will receive a 10% carried interest to feasibility in all of Texas Star’s prospects in the Northwest Territories.

— Kingswood Resources’ (ASE) plans to bulk sample a kimberlite pipe at Ile Bizard, just outside of Montreal, Que., may be thwarted by a proposed ban on all exploration on the mainly urban island. An internal government directive indicates that the whole island will be rendered off limits to prospectors.