THE DIAMOND PAGE — Higher value reported at Diavik

Further valuations have boosted the carat value of diamonds from the A-154 South pipe at the Diavik project in the Lac de Gras region of the Northwest Territories.

Ownership of the project is split 60-40 between Diavik Diamond Mines and Aber Resources (ABZ-T).

Diavik Diamond Mines is a newly formed division of RTZ-CRA, which will serve as that company’s diamond operating arm in the Territories.

As a result of valuations by six independent experts in Antwerp, Belgium, on a 5,658-carat representative sample, the partners have determined an average value (under present market conditions) of US$67 per carat for all sizes of diamonds.

Aber reports that the experts were unanimous in their view that the diamonds are attractive, high-quality and readily marketable.

A previous valuation on 8,979 carats by Australia-based CRA Diamond averaged US$59.30 per carat.

The A-154 South pipe is one of four pipes being evaluated by the joint venture as part of an US$80-million prefeasibility study, to be completed in autumn of this year.

Geological tonnage and grade are being revised for pipes A-154 South, A-154 North, A-418 and A-21.

* Preliminary modelling of the A-154 South pipe indicates a resource of 12 million tonnes to a depth of 400 metres. The grade stands at 4.2 carats per tonne, compared with a previous estimate of 4.54 carats.

* The A-154 North pipe sits just 250 metres from A-154 South. A preliminary estimate of the resource stands at 5.3 million tonnes grading 2.19 carats per tonne to a depth of 250 metres. A 156.81-carat parcel recovered from 71.72 tonnes of drill sample was valued at US$35.10 per carat.

* Meanwhile, a 3,000-tonne, underground bulk sample of pipe A-418 is being trucked by winter road to Yellowknife, N.W.T., for processing. The bulk sample has been stockpiled since last fall.

Previous drilling on the pipe recovered 247.5 carats from 62.3 tonnes of kimberlite for a grade of 4.02 carats per tonne. Initial valuations averaged US$64.10 per carat.

The A-418 is estimated to contain a resource of 5.8 million tonnes, extending to a depth of 250 metres. It lies 750 metres southwest of A-154 South.

* A large-diameter drill program is in progress on pipe A-21, which lies 5 km south of A-154 South. A single, large-diameter hole drilled in 1996 yielded 21.49 carats from 6.9 tonnes of kimberlite for a preliminary grade of 3.11 carats per tonne.