THE DIAMOND PAGE — Dia Met forms Venezuelan partnership for alluvial property

Dia Met Minerals (DMM-T) is forming a joint venture in Venezuela to look for the hard rock source of diamonds on an alluvial property there.

The Kelowna, B.C.-based company will join forces with the Venezuelan co-operative that owns the alluvial rights to the 3,225-ha property.

Between 1988 and 1995, the co-operative produced more than 250,000 carats of diamonds, many of which were gem-quality, octahedral and white in color.

Investigations suggest the diamonds originated in the diamondiferous kimberlite dykes that outcrop on the property. Dia Met, which will own a 90% interest in the joint venture, believes kimberlite pipes might also be present.

The joint venture will apply to the Venezuelan government for rights to the underlying hard rock, exploration of which will be funded by Dia Met.

Meanwhile, the Venezuelan co-operative will continue to carry out alluvial mining in areas not earmarked for hard rock development. It will receive a US$50,000 payment, plus an additional US$50,000 when all approvals are obtained.

In a related agreement, Canadian Mountain Minerals (CYM-A) and Goldtex Resources (GXR-A) will each be able to earn 24.5% of the 90% interest held by Dia Met in the Venezuelan corporation, as well as a 24.5% interest in Dia Met’s lead-zinc-silver property near Kimberly, B.C.

In return, Canadian Mountain Minerals and Goldtex will each contribute $2 million for exploration of the Venezuelan project and the Kimberly claims.

Dia Met plans to carry out a $4-million program of heavy mineral sampling and ground geophysics on those targets, with drilling scheduled for spring.