THE DIAMOND PAGE — Joint venture discovers diamonds in

Partners War Eagle Mining (VSE) and Great Western Gold (VSE) have discovered three diamondiferous kimberlite pipes on their 50-50 joint venture near Candle Lake, north of Fort a la Corne, Sask.

The drilling intersected kimberlite at depths ranging from 116 to almost 200 metres below surface.

The juniors reported results from the initial 59 kg (or 10%) of the 600 kg of samples sent to Lakefield Research for analysis. A total of 12 diamonds were recovered from the three targets, the largest being 0.6 mm in diameter. Three clear-white diamonds were recovered from two samples, totaling 14 kg, which tested Pipe 28. Two of these are described as octahedrons. One clear-white diamond splinter was recovered from Pipe 29 in a 5.6-kg sample. Six diamonds were recovered from a 9.6-kg sample (from Pipe 30A) and two from a 12.7-kg sample. Seven of these diamonds are clear-white and three of those are octahedrons.

The partners report that 90% of the diamonds are of gem quality, but mining analysts John Kaiser and Andrew Muir of Pacific International Securities point out that only one diamond is actually greater than 0.5 mm (the cutoff between microdiamonds and macrodiamonds).

The analysts state that “given the borderline nature of a 0.6-mm stone, it is appropriate to treat all the Candle Lake stones as microdiamonds.” They add that for a stone to be a gem, it must be cuttable, which a microdiamond is not. “In short, there are no macros and no gems present.”

Kaiser and Muir nevertheless believe the results are encouraging for a grassroots discovery, and more results from the joint venture are expected shortly.

Elsewhere in Saskatchewan and Manitoba

* Winslow Gold (VSE) and partner Northwind Ventures (VSE) have acquired an additional four claim blocks in central Saskatchewan, about six km northwest of the War Eagle diamond discovery. The partners have also staked several blocks south of the discovery.

Winslow and Northwind are also acquiring 160 claim blocks in southern Manitoba. These claims are in the same area as those recently staked by Rhonda Mining.

* European Ventures (VSE) has intersected a narrow kimberlite dyke on Wekusko property near Snow Lake, Man. A 5-kg sample containing indicator minerals has been sent for microdiamond analysis.

* Rhonda Mining (ASE) has filed the largest single group of mining claim applications in Manitoba’s history. A total of 4,284 applications were filed, covering 1.1 million hectares. The claims cover an area running due south of Winnipeg, to the U.S. border and extending east to the Ontario border. Rhonda plans to explore the property for diamonds, gold and base metals this summer. Northwest Territories

* Six juniors are involved in agreements with Kennecott Canada related to the Tli Kwi Cho (DO-27) kimberlite pipe. But this number could be reduced to three once Aber Resources (TSE) merges with Commonwealth Gold (VSE) and assuming Kennecott is able to acquire all the outstanding shares of Dentonia Resources (VSE).

The Aber-Commonwealth merger is expected to be approved shortly, whereupon Aber intends to make an offer to acquire all outstanding Dentonia shares. Dentonia shareholders will be offered two shares of the amalgamated company for each common share. The acquisition will bring together a 26.67% interest in the Tli Kwi Cho pipe, the largest stake after Kennecott’s 40% holding. The combined companies will hold interests in 2.2 million acres of claims in the Lac de Gras region, including interests in several new targets to be drilled this spring.

Dentonia President Adolf Petancic said the terms of the proposed bid “appear somewhat inadequate,” but declined further comment. The company has retained legal and financial advisers to provide advice on the matter. Meanwhile, Kettle River Resources (VSE) has adopted a shareholder protection rights plan designed to ensure all its shareholders receive fair value for their shares in the event of a takeover bid.

So far, though, the company is not aware of any specific effort to acquire control of the company. The junior has an 11.67% interest in the Tli Kwi Cho pipe, being bulk-sampled by Kennecott.

* Drilling has started at the Yamba Lake project in the Lac de Gras region. Partners Tanqueray Resources (ASE), Fibre-Klad Industries (ASE) and Mill City Gold (VSE) report that a field crew and camp were mobilized in early March. The program is designed to bulk-sample the diamond-bearing Torrie kimberlite from lake ice locations. Two new kimberlite targets, Torrie 2 and 3, will also be drill-tested.

* Russian diamond expert Felix Kaminsky has formed a “strategic alliance” with a Canadian geophysicist to offer joint diamond exploration services to select Canadian clients. Kaminsky, a director of the Moscow-based Institute of Diamonds, is teaming up with Gerry Mitchell, a former senior minerals geophysicist for BP Canada who founded GM Exploration in 1993. * Noront Resources (TSE) has entered three agreements with Pure Gold Resources (TSE), whereby the latter can earn a 40% interest in three claim blocks totaling 122,796 hectares near Lac de Gras. Each agreement calls for a payment of 50,000 shares of Pure Gold upon signing and a further 50,000 shares one year thereafter. Pure Gold must also spend $500,000 on each property by Feb. 12, 1996.

In each of these agreements, Ashton Mining of Canada (TSE) can earn a half interest in each property pro rata from both Noront and Pure Gold. To earn its interest, Ashton must reimburse Noront for its acquisition costs of $306,991, reimburse any future exploration costs incurred by the partners and fund the acquisition and processing of a 20-tonne bulk sample of kimberlite.