THE DIAMOND PAGE — Investors await drill results from

Diamond exploration in Saskatchewan is showing no sign of letting up, as results are eagerly awaited from several drill programs.

War Eagle Mining (VSE), a player in the Candle Lake joint venture, shed some light on analytical work performed on core from two targets. Hole 2 tested a target 12 miles northeast of the Birchbark Lake property, reportedly owned by the Monopros-Uranerz-Cameco joint venture. Hole 4 was drilled to test a second target, 18 miles from the first. (Results from other holes on these targets are still pending.)

Both drill hole cores (2 and 4) were found to contain kimberlite of the peridotite type, consisting of pyrope-almandine and pyrope garnets, as well as ilmenite, chrome diopside, phlogopite and spinel in a mass of olivine, pyroxene, calcite and serpentine.

Results are awaited from electroprobe analysis and diamond analysis of the kimberlite residue. Results are also pending from drilling of a third target, believed to be part of the same kimberlite cluster. No further work is planned for the fourth target, which proved to be an iron formation. War Eagle’s partner in the project is Great Western Gold (VSE). Elsewhere in Saskatchewan & Manitoba

* In the same area, Winslow Gold (VSE) and Northwind Ventures (VSE) have acquired a 75% interest in one property and 25% in another. The concessions were acquired in exchange for $25,000 and 50,000 shares of Winslow and Northwind and are subject to a 15% net profits interest.

The partners subsequently optioned a 25% interest to Golden Marlin Resources (VSE) and another 25% to Island Arc Resources (VSE).

Meanwhile, in southeastern Manitoba, Winslow and Northwind are performing ground magnetic surveys and shallow drilling. The companies have a 40% and 20% working interest, respectively, in more than 17,402 hectares in the province.

* In other Saskatchewan news, Rhonda Mining (ASE), operator of the Snowden joint venture, has bought 3 million common shares of Aaron Oil (ASE), its partner in the project.

Rhonda plans to make a takeover bid to all shareholders of Aaron, on the basis of one Rhonda share for every four Aaron shares. A formal proposal has not yet been made, but Aaron says it will take “whatever steps necessary to maximize the value of its shares,” including retaining independent experts to advise on the fairness of any such proposal.

Alberta

* Partners Takla Star Resources (ASE) and Fairstar Explorations (ME) report that a heavy mineral geochemical anomaly, indicative of a lamproite body, has been located on its claim block in the Kisha River drainage area. Indicator minerals have also been discovered in till and glaciofluvial samples collected from the Legend and Edmonton claims.

Ontario and Quebec

* KWG Resources (ME) will earn a 62.5% interest in the Lac Castignon property from Societe Miniere Ecudor (ME). Under the deal, KWG will earn 25% upon completing $200,000 worth of exploration before Dec. 31 and another 37.5% when the project reaches the feasibility stage.

The 65-sq.-km property, 200 km northwest of Schefferville, Que., contains kimberlite bodies.

* On the Benson Creek property, southeast of Kirkland Lake, Ont., Panthco Resources (VSE) has outlined 10 circular magnetic anomalies thought to represent kimberlites. Reconnaissance basal till sampling has also confirmed the presence of kimberlite indicator minerals. Two mineral trains, thought to have a local source, have been identified.

Followup work will consist of fill-in geophysical surveys, basal till sampling and geological mapping.

* Following the acquisition of 488 new claims in Quebec’s Le Sueur Twp., Consolidated Ojibway (ME) has resumed drilling. The junior is testing several circular anomalies.

* Explorations Minieres du Nord (ME) has started drilling in Le Tac Twp., near Demaraisville, Que. At least seven geophysical targets will be tested. The company also reports that numerous indicator minerals have been found on seven nearby properties in which it shares interests with Master Plan Mineral & Petroleum Developers (ASE) and Wiscan Resources (TSE).

Overseas

* The Sierra Leone government has granted a “special exclusive prospecting licence” to Casierra Development Fund, a company formed to develop lode and alluvial diamond and gold projects on behalf of the Casierra Diamond Syndicate. Midas Minerals (TSE) has a 26.7% interest in the syndicate, with an option to increase this to 41% and become operator if a production decision is made.

The licence covers an 8-km section of Sewa River on which the Geological Survey of Sierra Leone has calculated a reserve of 1.8 million carats. * In southeastern Venezuela, a subsidiary of Naxos Resources (ASE) hopes to have two diamond processing plants up and running later this month. Last year, hand-mined diamond production from the alluvial concessions exceeded 3,200 carats.

* Canadian Overseas Exploration (VSE) is undertaking two private placements. One will raise $82,000 as a result of 410,000 units being issued at 20 cents each. The second will consist of 10-12 million units at 20 cents each and is intended to raise $2-2.5 million. Each unit will consist of one share and a warrant exercisable at 23 cents per share in the first year and 26 cents in the second. Proceeds will be used to acquire properties in southern Africa. * Wye Resources (CDN) has raised $925,000 to develop its alluvial diamond concessions in Zaire and has struck a deal with Sundance Resources (VSE) to acquire additional concessions in the country.