THE DIAMOND PAGE — Speculation mounts that some Lac de Gras

The rumor machine is in overdrive as speculation mounts that some type of merger may be in the works between junior companies involved with Kennecott in the Lac de Gras region of the Northwest Territories.

Such a move would no doubt be welcome for investors, considering the complex nature of the various agreements whereby Kennecott is earning a 40% interest from six juniors in the DHK claim block.

These include VSE-listed Dentonia Resources and Kettle River Resources and ASE-listed Horseshoe Gold Mining. Together, these juniors make up DHK Resources and hold 35% of the project. Also involved are TSE-listed Aber Resources and SouthernEra Resources, each with 10%, and VSE-listed Commonwealth Gold holding the remaining 5%.

Kennecott and its junior partners were reported to have held a powwow of sorts in Yellowknife to kick around various ideas on the subject, but so far all parties are tight-lipped.

* Yellowknife recently hosted a Geoscience Forum where diamond exploration was the main topic of interest. About 400 delegates turned out to hear updates on various projects under way in the Territories and to grab copies of the hot-selling new map of the Slave craton. (Another hot seller, with proceeds going to charity, was a calendar entitled “Diamonds in the Rough,” featuring some very macho poses by northern female geologists.) * Rumors were also circulating in Yellowknife and Vancouver that a major company may be looking to participate in the kimberlite discoveries made in the Yamba Lake region by three juniors: Tanqueray Resources (ASE), Fibre-Klad Resources (ASE) and Mill City Gold (VSE). Speculation is that the juniors are also discussing merger plans, possibly with outside parties. * While the speculators speculate, work is continuing on the two most advanced diamond projects in the Lac de Gras region. Kennecott’s underground program to test the Tli Kwi Cho (DO-27) pipe and its satellite pipe, DO-18, is reported to be on target. Rivals BHP Minerals Canada and Dia Met Minerals (TSE) are also on target with their sampling program, and aiming for a production decision as early as mid-1994.

Core from the Kennecott-operated project was on view at the recent mining convention in Spokane, Wash., where results were made public from holes not previously released. The aggregate of the new holes, totaling 1,126.2 kg of core, contained 209 macrodiamonds and 721 microdiamonds. When added to previously released holes, the total amounts to 1,739.6 kg containing 349 macros and 1,111 micros.

So far, only a few holes have been released from DO-18 (more are expected shortly). Results to date total 457.3 kg of core containing 37 macros and 207 micros.

* Geophysical surveys have been completed on Barexor Minerals’ (ME) Aylmer Lake property, also near Lac de Gras. The magnetic surveys outlined several individual kimberlite targets and a possible kimberlite cluster. Geochemical surveys have also discovered kimberlite indicator minerals, and an eclogitic sample was recovered next to a circular lake.

Several of the targets will be drill-tested shortly.

The company also reports that a previously announced Caratax financing of $350,000 has been canceled.

Alberta and Saskatchewan

* Marum Resources (ASE) has received preliminary results from an airborne magnetic and electromagnetic survey on its Pinhorn property in southern Alberta. Several potential targets have been outlined and these will be revised as data are processed further.

Ontario and Quebec

* Explorations Diabior (ME) has concluded a deal with William Resources (ME) over the Diatac project in the Le Tac area of northwestern Quebec. The project contains 13 properties which cover 19 circular magnetic anomalies thought to represent kimberlites.

According to the deal, William will spend between $50,000 to $80,000 on exploration prior to year-end. Diabior, which will operate the project, can earn a 25% interest by issuing shares totaling the amount invested by William. Diabior can earn an additional 25% by spending $150,000 on exploration over two years.

Geological and geophysical surveys have been completed on three blocks and drilling is scheduled to begin soon.

United States

* Marum Resources reports that a kimberlite pipe on one of its Montana properties contains G-10 garnets. So far, eight pipes on the Montana properties have been identified as kimberlites.

Overseas

* Wye Resources (CDN) has obtained financing to carry out the second phase of exploration on its alluvial diamond concessions in Zaire. Work will include geological and hydrological evaluation of the concessions. Several stones ranging from 1.7 to 22.5 carats were recovered during the first-phase program.