THE DIAMOND PAGE — Production decision possible in 1994,

A production decision is possible late this year for the first commercial diamond mine in North America, according to a research report by First Marathon Securities.

The investment firm based its optimism on the encouraging exploration results released in 1993 by Dia Met Minerals (TSE) and BHP Minerals Canada from their properties in the Lac de Gras camp, north of Yellowknife, N.W.T. The investment firm predicts the partners will consider building a central mill which could receive feed from several (possibly four) separate pipes, all within about a 10-km radius of the mill. The firm cautions, however, that the possibility of a go-ahead decision later this year will depend on results from preliminary bulk samples now under way.

Elsewhere in the Northwest Territories

* DHK Resources reports that Kennecott Canada expects to begin extracting kimberlite within the first 10 days of January from the Tli Kwi Cho (DO-27) target, also near Lac de Gras.

The 5,000 tonnes of extracted kimberlite will be stockpiled on site and trucked to Yellowknife for processing as soon as the winter road opens (probably in late January). The diamond recovery plant was built at the Con gold mine to shorten the permitting process. If results warrant, the plant may be moved to the site in early spring to process an even larger pre-feasibility bulk sample from both Tli Kwi Cho and its satellite, DO-18. Alberta

* Troymin Resources (ASE) has received a $100,000 option payment on its 200,000-hectare Hinton diamond property. The payment is part of a deal which allows an undisclosed party to earn a half interest.

Troymin has also been notified that CDI Management of Vancouver has failed to raise sufficient funds to meet its commitment, with Troymin, of $100,000 in flow-through shares.

Ontario and Quebec

* Joint-venture partners William Resources (ME) and Explorations Diabior (ME) report that a hole drilled in the Le Tac Twp. area of Quebec has intersected 156.5 metres of kimberlite. The core is being analyzed to determine its diamond content, and further drilling will determine the exact size of the pipe.

Diabior can earn up to a half interest in 13 properties in the area. It has just completed a public financing of 1.6 million shares at 75 cents each to raise $1.2 million.

* Lyon Lake Mines (ME) has completed a private placement of 1.1 million shares at 32 cents each to raise $350,000. Of the money raised, $280,000 will be used to explore the Lac de Bois property in Temiscamingque and the Benoist property near Le Tac Twp., both in northwestern Quebec. The remaining funds will be added to working capital.

Geophysical surveys and diamond drilling are under way.

* Globex Mining Enterprises (ME) has acquired two claim blocks totaling 19 claims in Marin and du Guesclin twps., Que., about 32 km east of Le Tac Twp. The claims cover the intersection of several large fracture zones and contain bull’s-eye-shaped magnetic anomalies thought to represent kimberlites. Overseas

* Brazil, an important source of diamonds before the first discoveries were made in South Africa in the mid-1800s, is attracting the attention of companies exploring for primary diamond deposits.

Although alluvial mining operations have operated intermittently during this century, the precise source of these alluvial diamonds has not been established.

In recent years, several major companies, including DeBeers of South Africa, are reported to be active in historically producing (alluvial) regions such as Coromandel and Minas Gerais. Juniors are also active in this area, with many interested in developing alluvial operations that can provide cash flow while evaluating known intrusions and prospecting for new targets takes place. Exploration for diamondiferous diatremes is complicated by uncertainties of the craton limits of the region. Some reports indicate the known diatremes intrude rocks of mobile belts, rather than undisturbed Archeon cratons (where all known diamondiferous kimberlites are found).

Some of the Brazilian targets are described as having “kimberlitic” characteristics, while others are described as “lamproitic.” It has been suggested that ongoing exploration in Brazil might even result in a new type of target being identified as the primary source of the region’s diamonds. * Ressources Robex (ME) can earn a 60% interest from Mink Mineral Resources (VSE) in two concessions totaling 660 sq. km in the Kenieba region of Western Mali. Under the deal, Mink will receive $75,000 in cash, 500,000 shares of Robex and a guaranteed work commitment of $3 million, all over a 4-year period.

To date, 21 partially evaluated kimberlite pipes have been identified in Kenieba, eight of which are known to be diamondiferous.

Several alluvial diamonds have also been found along the Gara River, which traverses one of the two optioned parcels. The two parcels being acquired by Robex are portions of a 16,600-sq.-km concession held by the Diamond Syndicate Mali, a group consisting of Mink Minerals and the Mali and French governments.

* Hol-Lac Gold Mines (CDN) is negotiating with Geoprognoz (the Ukrainian state geological company) to acquire exclusive rights to explore for minerals in an area near the town of Rivne in northeastern Ukraine.

Geoprognoz has identified several kimberlite pipes in the area, some of which are known to be diamondiferous. Follow-up work has been curtailed by a lack of funding and the Soviet emphasis on development of the Siberian diamond fields.

Under the agreement, Hol-Lac will fund exploration work to be carried out by Geoprognoz over the next five years.