THE DIAMOND PAGE — Blusson claims focus of lawsuit

A property staked by geologist Stewart Blusson, northwest of the Dia Met-BHP discovery property in the Northwest Territories, has become the focus of a lawsuit launched by Vancouver-based Pioneer Metals (TSE).

Pioneer alleges that in late 1992, Blusson (former vice-president of exploration for the company) staked 317,000 acres in his own name after telling the company that all the worthwhile ground in the Lac de Gras area was taken.

Pioneer is pursuing the case in the Supreme Court of British Columbia. But Blusson, who, alongside Dia Met Minerals (TSE) Chairman Charles Fipke, was involved in Dia Met’s initial diamond discovery at Lac de Gras, said Pioneer has no rights to the claims since the ground was acquired before Pioneer was formed in 1986.

Blusson retains a 10% interest in Dia Met’s Northwest Territories properties and, at last report, planned to roll all his interests outside the original discovery block into a new company called Texas Sidewinder Oil. Pioneer touched a 52-week high of 79 cents in early June but has since slipped back to 45 cents.

In other diamond developments in the Northwest Territories:

* Cyclone Capital (VSE) has established an 18-man camp as a base for its $1.6-million exploration program on Somerset Island. The program includes ground magnetometer surveys and diamond drilling on individual phases of known kimberlite bodies.

* Caratax has agreed to subscribe for up to $300,000 worth of flow-through units of Garden Lake Resources (VSE). Each unit consists of one share and one warrant to buy an additional share by March 1, 1994. Garden Lake and RJK Explorations (CDN) recently completed geophysical surveys over their Warburton Bay property. (Warburton Bay is in the Northwest Territories, not in Ontario as reported in last week’s issue.)

* Under a recent agreement with Pure Gold Resources (TSE), International Platinum (TSE) has the option of spending $250,000 on sampling and geophysical interpretation to earn a 50% interest in a 7,000-sq-km land package within the Lac de Gras area.

Under a separate agreement, the two companies have acquired the right to earn a 70% interest in 100,000 acres held by private interests.

Caratax Diamond Exploration Limited Partnership (Caratax) has agreed to buy flow-through shares of Pure Gold to a maximum of $750,000. The diamond fund is also financing International Platinum.

* Kennecott Canada has bought 1.14 million shares of SouthernEra Resources (TSE) at $2 per share under a warrant agreement signed last July. Kennecott now owns 20.7% of SouthernEra’s 12.5 million issued and outstanding shares. *To finance exploration on its Greenstone Belt and Pollock Lake properties, Treminco Resources (TSE) has arranged a $150,000 private placement of flow-through shares with Caratax at 25 cents per share. Caratax will also receive warrants to buy an additional $75,000 worth of flow-through shares at 31 cents per share.

Alberta

* Achates Resources (ME) has reached an agreement to acquire a 50% interest in 100,000 acres west of Edmonton, Alta., from Maymac Petroleum (VSE). To satisfy the earn-in, Achates must spend $150,000 over two years and issue 600,000 shares. Preliminary sampling has recovered a significant number of diamond indicator minerals including pyrope garnets, chromites, diopsides and ilmenites.

Ontario and Quebec

* Cross Lake Minerals (VSE) has staked two new claim groups covering several electromagnetic conductors in Edwards Twp., near Timmins, Ont. With the added ground, Cross Lake’s holdings in the Timmins region have increased to 693 claim units representing 17 separate projects, of which seven are diamond-related.

* Noront Resources (VSE) has reached an agreement to acquire a 60% interest in an 82-claim property two miles southeast of the diamond-bearing kimberlite in nearby Le Tac Twp, Que., from Exploration Orbite (ME). Recent sampling has confirmed that kimberlites containing indicator minerals occur on the Orbite property.

Noront can earn the interest by paying $85,000 and spending $1 million on exploration over three years. The junior recently completed two private placements for total proceeds of $420,000.

A related company, Blue Emerald Resources (VSE), has signed a similar agreement to earn into 78 Orbite claims adjoining the Le Tac discovery. * Tandem Resources (TSE) has signed a formal agreement with Homestake Mining (TSE) to explore a kimberlite found inadvertently by Homestake several years ago during a gold exploration program in Guibord Twp., Ont. The kimberlite has yielded one microdiamond.

Tandem has acquired a 16-sq.-mile land package around the kimberlite and has outlined an estimated 10 drill targets.

* Gwen Resources (ASE) is conducting a $50,000 exploration program on at least 17 known diatremes and related occurrences recently staked in southeastern British Columbia. The program will include sampling of known occurrences as well as mapping and prospecting.

Overseas

* Diamond Fields Resources (VSE) will raise up to $7.15 million through a brokered private placement with First Marathon Securities and Yorkton Securities.

The placement will consist of 1.3 million special warrants at $5.50 per warrant. Each warrant entitles the holder to one common share and one warrant to buy an additional share.

In other developments, the company has purchased M.V. Ocean Rover, an Australian ship, for $525,000. When it reaches Cape Town in September, the ship will be fitted for deep sea mining on Diamond Fields’ concessions off the coast of Namibia.

* The president of Wye Resources (CDN), James Myslicki, as well as two directors of the company, have resigned. Dr. Ray Malik, a resident of Labrador City, Nfld., with a degree in dental surgery, has been elected president and director of the company. Wye has opened an office in Labrador City and plans to proceed with the next phase of development at its alluvial diamond prospect in Zaire.