THE DIAMOND PAGE — Summer exploration program in full swing

A summer work program is in progress at the Cross property, about 120 km north-northwest of Yellowknife, N.W.T.

Ashton Mining of Canada (TSE) has advised partners Pure Gold Resources (TSE) and Tenajon Resources (VSE) that the property remains a high priority and further work, to include winter drilling on the Cross kimberlite, is planned.

The summer program has included 275 metres of surface drilling on the southern portion of the property, the objective being to investigate the source of a strong indicator mineral fan. Two of the holes intersected a narrow kimberlite dyke and no further drilling is planned. Instead, ground geophysics will be carried out in order to define a larger target. Ashton is expected to release results next month from the processing of 3 tonnes of material from the Cross kimberlite. To date, about 40% of this has been processed.

Elsewhere in the Northwest Territories

* Kettle River Resources (TSE), Dentonia Resources (VSE) and Horseshoe Gold Mining (ASE) have decided to shelve merger negotiations. The junior companies together hold a 35% interest in the Tli Kwi Cho kimberlite recently bulk-sampled by Kennecott Canada. The major is not planning any more work on Tli Kwi Cho, but it recently completed three NQ-size drill holes to delineate the nearby DO-18 pipe on the WO claim block. Kimberlite core will be sent to Lakefield Research for caustic fusion microdiamond analysis. The drill rig is now being moved to the DD-17 pipe on the DHK block of claims where further delineation of this pipe will occur. Regional and follow-up till sampling are continuing on all DHK claim blocks.

Saskatchewan

* Rhonda Mining (ASE) says analysis of its airborne geophysical and ground surveys on lands at Sturgeon Lake, Fort a la Corne and Carrot River has identified 80,940 hectares on which exploratory drilling will be carried out. Subject to the rights of its partners, Rhonda is proposing to return about 730,000 hectares to the Crown, which is the former landowner. Rhonda also holds varying interests in a further 405,000 hectares operated by third parties.

The company’s diamond targets have been identified as volcanic tuff rings and sedimentary units associated with kimberlite diatremes.

Ontario & Quebec

* Partners KWG Resources (ME) and Spider Resources (ASE) have recovered 22 microdiamonds from a 22-kg sample collected from the northwest lobe of the previously reported Troika kimberlite in the Notre-Dame-du-Nord area of Quebec.

This sample is one of 13 being analyzed at a diamond recovery lab in Western Australia. Additional results are expected shortly.

KWG and Spider have a substantial land position in the area and also hold several properties in conjunction with Charlim Explorations (VSE) and Goldhunter Explorations (ASE). Exploration of these holdings is expected to begin in the near future.

* At the Spider No. 1 property in northern Ontario, KWG and Spider have recovered three microdiamonds from a 145-kg sample taken from a portion of the MacFadyen No. 2 kimberlite pipe. This body may be connected to the MacFadyen No. 1 pipe situated 380 metres to the northwest.

Overseas

* Belore Mines (ASE) and United Reef (TSE) have signed a deal to acquire the rights to two alluvial diamond deposits in Central African Republic (CAR). Both deposits are located about 150 km south of United Reef’s Bamingui property, and are being hand-mined by local artisanal miners. The two deposits, Djourou and Aigbando, were first discovered by French colonialists in the early 1960s. In the Aigbando area, 3,381 carats were recovered from gravels with a grade of 0.33 carats per cubic metre; at Djourou, 8,551 carats of diamond were recovered from gravels grading 0.27 carats. Aigbando is the site of the largest diamond find in CAR, where one stone weighing 215 carats was discovered in 1991.

The companies expect that the permit application will be approved in September, and that exploration of the permit area will commence shortly thereafter.

Belore can earn a 40% interest in the permit by funding the initial $250,000 in exploration expenditures. United Reef will hold an equal 40% interest, with the remainder being held by CAR nationals.

* During July, 261 diamonds with a combined weight of 91.3 carats were recovered from United Reef’s pilot plant on its Bamingui project in the Central African Republic.

The average size of the diamonds recovered was 0.35 carats. Thirty-three diamonds were larger than 0.5 carats, and 6 stones were larger than one carat, with the largest stone weighing 5.6 carats. The company estimates that 78% of the stones are gem quality.

* Botswana Diamondfields (VSE) is planning an initial drilling program based on results from soil sampling which uncovered kimberlite indicator mineral grains concentrated near magnetic anomalies. The company has four blocks of exploration licences totaling 6,000 sq. km in Botswana.

The first round of drilling will test 20 of 60 targets identified through previous exploration on its licences in Botswana. The company is continuing work carried out over the past six years by a private Botswanian company managed by Norman Lock, who is overseeing current work. Lock is reported to have played a role in the discoveries of the Orapa and Jwaneng diamond mines in Botswana.