THE DIAMOND PAGE — Drill results give boost to Daivik

Partners Kennecott and Aber Resources (TSE) have received good news regarding their Daivik property in the Lac de Gras area of the Northwest Territories.

Hole A154-3 returned 376 microdiamonds and 170 macros from 373.2 kg of core. The vertical hole was drilled about 250 metres northeast of the discovery hole, A154-2. The former hole intersected kimberlite at a depth of 38.8 metres and ended in kimberlite at a depth of 247 metres. The joint venture believes A154-3 tested a pipe separate from that which was intersected in the discovery hole.

Nine holes have been drilled in the A154 target area. Six intersected kimberlite, two were lost close to surface, and one intersected granite. The discovery hole returned 1,296 diamonds, including 402 macros, from 750.8 kg of core. Results from the remaining kimberlite intersections are pending and, in the meantime, the joint venture is preparing to resume definition drilling from the lake ice in January.

Kennecott and Aber, which have 60% and 40% interests in the property, respectively, intend to perform definition drilling on the A21 pipe in the new year. Hole A21-1 intersected 121.3 metres of kimberlite, with a 154.6-kg core sample returning 116 micros and 38 macros.

The partners are also considering collecting mini-bulk samples from the pipes. Elsewhere in the Northwest Territories

* Partners Tanqueray Resources (TSE), Mill City Gold Mining (VSE) and De Beers Consolidated Mines report that drilling at the Yamba Lake property failed to intersect any kimberlites. During the program, seven holes were drilled to test six targets.

In addition, 466 overburden samples were collected to improve sample densities. Results will be released at a later date.

Alberta

* Montello Resources (ASE) has found two more diamonds in stream samples collected from the Hinton property. One diamond, a macro, was clear and colorless, while the second, measuring 0.24 mm, was cube-shaped and light brown in color. Several chromites and garnets were also recovered. Work will continue throughout the winter, and additional results from the summer program are expected shortly.

Troymin Resources (ASE) holds 400,000 hectares in the Hinton play. Upon Montello’s completion of a $2-million exploration program, Troymin’s interests will range from 10% to 40% in the various acreage blocks. Overseas

* South Atlantic Diamonds (VSE) has decided to expand its holdings in the Coromandel project area of Brazil after discovering microdiamonds in one of its kimberlite intrusions.

The junior is buying 5,600 hectares for US25,000 from a third party and has filed a request with the Department of Mines for an additional 234,400 hectares. The area currently comprises 268,000 hectares.

* Sentinel Resources (VSE) will borrow $1.4 million from a New York investment group to finance its previously announced diamond project acquisitions in Africa. The loan will be converted into units, on approval by the Vancouver Stock Exchange.

Sentinel can earn a half interest in the Good Hope project near Kimberley, South Africa, by paying 4.7 million Rand ($1.8 million) by Dec. 29, 1994. It is in the process of transferring 2.3 million Rand to the vendor. A preliminary geological report indicates diamonds occur both in a primary deposit and as alluvial deposits. Reserve estimates are not yet available. Other company interests in Africa include an option on a half interest in the Pypklip alluvial project (for 1.8 million Rand plus 150,000 shares) and an option on a 90% stake in the Holpan alluvial project (for 3 million Rand). Diamonds have been recovered from both these projects, but additional work is required before a resource can be identified.

* United Reef (TSE) plans to carry out a private placement to raise up to $4 million. A London, England-based investment firm has agreed to place the shares, valued at 60 cents each, on a best-efforts basis. Proceeds will be used to fund continuing exploration and development of the Bamingui-Bangoran diamond project in the Central African Republic.

United Reef has also reached an agreement with the original owners of that property to acquire all of their residual interests in the project through the issuance of 2.5 million United Reef shares. The owner’s residual interests consisted of a $1-million cash payment upon commencement of commercial production, a 3% gross revenue royalty (escalating to 4% after the recovery of 500,000 carats) and a 20% back-in interest.

* Partners Fancamp Resources (ME) and Scintilore Explorations (TSE) have received preliminary results from an airborne magnetic survey flown over 43% of their Gemsbok diamond property in Botswana.

Some 36 potential kimberlite anomalies have been identified in a previously unexplored area, 26 of which are considered priority targets. Interpretive work is ongoing, and ground testing of some of these targets will begin shortly.

Solidor Resources (VSE) can earn a 20% interest in the project by financing 40% of all exploration expenditures (deemed to be worth US$1 million).