Sudbury Contact finds second pipe

A second kimberlite pipe has been found by Sudbury Contact Mines (TSE) in the Kirkland Lake area of northeastern Ontario, the junior says in its quarterly report to shareholders.

A 63-kg sample, taken from the pipe at depths of 250-350 metres, is now being tested by an independent laboratory and the company, an affiliate of Agnico-Eagle Mines (TSE), expects to be drilling again in October. A spokesman declined to comment on the find, except to say that it lies south of Sudbury’s Diamond Lake discovery. “We’re being low key in the sense that we’re still trying to acquire ground in the area,” he added. Since finding 14 microdiamonds in a pipe on its Diamond Lake property west of Larder Lake, Ont., Sudbury Contact has launched an exploration program, including drilling, geophysics and geological mapping, over a 16,738-hectare area stretching from Kirkland Lake to the Quebec border.

Meanwhile, shares of Dia Met Minerals (VSE) raced to a new high of $18.88 as investors speculated on results from a second, larger kimberlite target drilled by the BHP Minerals Canada-Dia Met joint venture earlier this summer. The junior has also applied for, and is expected to receive, a listing on the Toronto Stock Exchange.

Other diamond news from across the continent includes:

— Wheaton River Minerals (TSE) and Strike Minerals (CDN) have started drilling a number of magnetic anomalies in Elliott Twp., Ont. — Gwen Resources (ASE) is planning a flow-through share offering for proceeds of up to $625,000. The funds will be used to drill the new Buffonta diamond-gold property in Garrison and Thackeray twps., Ont., where Gwen has a joint venture with Deak Resources (TSE).

Gwen, as a operator of the program, says four kimberlite dykes have been identified in the workings of the New Buffonta open pit gold mine. — Tyler Resources (TSE) has staked an additional 322,812 acres southeast of its Crystal property near Lac de Gras, N.W.T., to increase its landholdings in the area to more than half-a-million acres.

Tyler, an affiliate of Golden Rule Resources (TSE), is currently ground-checking geophysical anomalies on both its Crystal and Carat properties where it has identified 13 and nine anomalies respectively. The first samples from the Carat property are on their way to the Saskatchewan Research Council in Saskatoon, where they will be analyzed for their indicator mineral content.

n Fibre-Klad Industries (ASE) has agreed to purchase a 100% interest in a 70,500-acre claim block near Lac de Gras for $60,700 and 400,000 units. The units consist of one share and one warrant to purchase a Fibre-Klad share at 12 cents.

— Rhonda Mining (ASE) has completed a private placement of 96,000 flow-through shares to raise $360,000 to finance exploration on its claims near Sturgeon Lake, Sask. The shares are accompanied by warrants to purchase an additional 96,000 shares at $5 per share before June 30, 1993. — Goldconda Resources (ASE) has started diamond exploration in six different areas of the western U.S. At one of the unidentified sites, a stream sediment sample returned one microdiamond in the form of a flattened octahedron. Previous samples have also been diamond-bearing.