Sudbury Contact Mines (SUD-T) has recovered a total of 301 diamonds from 1,711 kg of kimberlite drill core from its 300-sq.-km Timiskaming project straddling the Ontario-Quebec border, some 550 km north of Toronto.
The 0.17 carat worth of stones were recovered from the western portion of the 5-hectare 95-2 kimberlite, which was tested by five holes. Included are 87 macrodiamonds (stones exceeding 0.5 mm in at least one dimension), with 11 of those exceeding 1 mm in at least one dimension. The remainder are classified as microdiamonds.
The bulk of the stones were derived from K3 facies tuffisitic kimberlite at depth; the remainder were from near-surface, weathered tuffisitic kimberlite.
Previously, a total of 2,394 kg derived from 95-2 surrendered 229 diamonds, including 64 macros (14 exceeding 1 mm) and 165 micros.
Based on the latest drilling, Sudbury Contact estimates the kimberlite’s tonnage at 23-25 tonnes, to a depth of 300 metres.
Sudbury Contact plans to expand its mini-bulk sampling program to include the western portion of the pipe. In all, the company will collect 500 tonnes from the kimberlite during the fourth quarter. Drilling to delineate the western extent of the body is also planned.
Meanwhile, all but one of six samples (totalling 140 kg) from a single hole collared on the nearby MR-6 kimberlite body came up dry. The only diamondiferous sample yielded but 1 micro. The angled hole tested the southern lobe of the body. Results from three samples from a single hole to test the northern lobe are expected shortly.
On the financial front, the company has obtained a receipt for a final prospectus for a previously announced underwritten offering of 2.4 million units at $1.75 apiece. One unit comprises one share and half a warrant. One warrant is good for one share at $2.50 per share for 2 years. Proceeds will go to fund the mini-bulk sampling program.
The underwriting syndicate, which is led by Orion Securities and TD Securities has been granted an option to buy up to 360,000 extra units exercisable for up to a day before closing, which is expected by July 28.
The offering is subject to regulatory approval.
Shares in Sudbury Contact were 3 higher at $1.77 in early afternoon trade following the news on July 18.
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