THE DIAMOND PAGE — New kimberlite discoveries unearthed at

Northwest Territories

The focus was back on the Lac de Gras region this past week, as partners BHP Minerals Canada and Dia Met Minerals (TSE) reported the discovery of 16 new diamondiferous kimberlites on their joint venture in this part of the Northwest Territories (see full story on page 1).

That raises to 26 the number of drill-tested pipes — all with some diamonds — since the start of exploration. By applying advanced geochemical techniques, barren pipes are eliminated as exploration prospects; this enables the joint venture to avoid drilling dead-duck targets. Aber Resources (TSE) reported a new discovery on the Diavik property, where has a 45.6% interest. Ten microdiamonds and three macros were recovered from a 77.9-kg. sample of drill core taken from a 50-metre hole drilled into the C13 kimberlite pipe.

More drilling is planned on this pipe, held 20.4% by Aber, 24% by Commonwealth Gold (VSE) and 10% by SouthernEra Resources (TSE). The drilling, to begin shortly, will involve a total of 500 metres of drilling in three holes.

The partners also report that 400 till samples, recently collected for heavy mineral analysis as part of the summer program, are being processed. Results for fewer than 5% have been received and some are said to contain significant amounts of indicator minerals. More exploration drilling may be carried out this fall if probe results are favorable and targets can be defined. Partners Teryl Resources (VSE) and Calco Resources (VSE) had no success in testing six targets with seven holes. However, plans are in the works to test three additional targets, one of which is considered high-priority. * Elsewhere in the Territories, geochemical sampling has been completed by Gold Vessel Resources (ASE) on its Alymer Lake property. A $500,000 program of airborne geophysical surveys and ground follow-up is scheduled, pending sample results.

* Allyn Resources (ASE) has completed airborne geophysical surveys on its 57,265-hectare properties at Beechy Lake and Matthews Lake near Lac de Gras. The survey outlined several possible kimberlite targets as well as gold- and base-metal-related targets. Follow-up sampling is under way. At the company’s 12,141-hectare property near Courageous Lake, sampling has recovered diamond indicator minerals.

* Partners Tanqueray Resources (ASE), Fibre-Klad Industries (ASE) and Mill City Gold Mining (ASE) report that a second hole on their Yamba Lake property, drilled to follow up a previous intersection, has encountered 113 metres of kimberlite. A third hole is being drilled.

British Columbia

* Junior company Consolidated Venturex Holdings (VSE) recently completed bulk sampling to evaluate further a target on the Jack property near Golden. About 36 tonnes of crater facies material were collected, along with one tonne of hematitic and oxidized varieties of diatreme facies rock.

The larger sample was sent to Dia Met Mineral’s diamond recovery lab in Colorado, while smaller samples will be sent to C.F. Minerals Research in Kelowna.

Venturex can earn a half interest in the Jack claims, where previous work (by Dia Met) focused on a lamproitic diatreme which yielded three small diamonds. Ontario and Quebec

* Exploration Orbite V.S.P.A. (ME) and partner Noront Resources (VSE) have outlined two bull’s-eye magnetic targets on their property in Le Tac Twp., Que. The targets are 3.2 km southeast of the diamondiferous kimberlite discovery by Exploration Minieres du Nord (ME) and ground work is expected to begin shortly.

* Noront has acquired a 1,408-hectare property near Marathon, Ont. The property covers a double-bull’s-eye airborne magnetic anomaly over a circular topographic feature. The property lies along a linear structure known to host carbonatites and swarms of diabase dykes.

Additionally, the company has completed an agreement with prospector Peter Ferderber covering the Mt. Johnson and Oka properties in the Ile Bizard area near Montreal. Three kimberlite diatreme breccias are known to occur on Ile Bizard. The deal calls for Noront to pay $29,255 in staking costs and 100,000 shares, with Ferderber retaining a 2.5% royalty on any production.

United States

* Pending shareholder approval, Continental Precious Minerals (ME) will convert its interests in certain exploration properties into either a 3% or 2% net profits interest (NPI). These include the Arkansas exploration properties of Toronto-listed Texas Star Resources (including the Crater of Diamonds property), as well as properties in the Northwest Territories. In exchange for a 3% NPI, Continental will convey to Texas Star all of its interest in, and rights and title to, the confidential information, agreements and properties relating to a project in the James Bay Lowlands. (Continental and BP Resources Canada were involved in this project in 1987.) As part of the transaction, Continental will receive one million shares of Texas Star, and Texas Star will exercise warrants for 500,000 Continental shares at 85 cents each.

Overseas

* During a 19-day period in August and September, KWG Resources (ME) produced 31 diamonds weighing 79.19 carats from its Charneca property at Coromandel, Brazil. Most of the stones are gem-quality, with the largest weighing 32 carats.

The processing facility there is being expanded to 750 from 100 cubic metres per day, and an additional plant with a throughput of 360 cubic metres per day is being assembled for shipment to the property.

* Recently, a pilot treatment plant at Redaurum Red Lake Mines’ (TSE) 50%-owned mining property, in Zimbabwe, recovered 7,074 carats of diamonds from the weathered portion of the River Ranch kimberlite pipe. Included in this total were three large gem-quality stones weighing 32, 13 and 11 carats. Upgrading of a heavy media separation diamond recovery plant, to 130,000 carats per year, is on schedule and is due to be commissioned in November.

* Mountain Lake Resources (VSE) has signed a letter of intent with Southern Cross Diamond Ventures, a private South African company, allowing the former to acquire a half interest in the Nooitgedacht project. It is situated 125 km west of Johannesburg, South Africa.

Mountain Lake will acquire its interest by providing $310,000 and one million Mountain Lake shares. The funds will be used for development of the property and acquisition of other diamond properties within a 50-km radius. About $250,000 will be spent developing a pilot plant.

Nooitgedacht is a former diamond producer which yielded gem-quality stones exceeding 25,000 carats from paleoplacer gravels. Recent drilling by Southern Cross has identified 3.1 million cubic metres of diamond-bearing gravels.