United Reef plans to sample Bamingui diamond concession

A systematic sampling program designed to outline reserves is scheduled to get under way on the Bamingui diamond concession in the Central African Republic later this month, says United Reef Petroleums (TSE).

To determine the depth of the eluvial pay zone, which underlies up to four metres of overburden, United Reef plans to drill off part of a 100-sq.-km exploitation permit at 100-metre spacings using a hand-held drill. The company is also considering running a seismic survey over the grid to assess the pay zone’s depth and thickness. A backhoe will be used to dig test pits for grade determination.

A 3-phase exploration-development program is expected to cost $6 million. “Exploration costs are comparable to the Northwest Territories,” says A.C.A. Howe International geologist Ken Johnson, who is working on the project. “We will supply the camp by air.”

In the meantime, United Reef will continue to purchase gem-quality diamonds from local artisanal miners, who will work parts of the concession while exploration is ongoing. Late last year, the miners extracted 32 gem-quality diamonds ranging up to 2.6 carats for United Reef using shovels and crude washing pans.

The property’s diamond-bearing gravel zone, which forms a ribbon around the western edge of the Mouka Ouadda sandstone plateau, was deposited as the plateau retreated due to erosion. The zone ranges from 0.3 to 1.5 metres in thickness.

In the early 1980s, the 507-sq.-km concession was tested by Cogema, the French government-owned corporation, under the direction of former De Beers geologist Mousseau Tremblay. When Cogema pulled out of the country, Tremblay acquired the property for himself, later vending it to Ateba Mines. Ateba, which retains a vendor interest in the concession, is expected to resume trading on The Toronto Stock Exchange soon.

Tremblay is now supervising the United Reef program with the aim of outlining at least 500,000 cubic metres of diamond-bearing gravels. Based on results from the existing test pits, grades are estimated to be about 1.18 carats per cubic metre.

United Reef and its major shareholder, Canhorn Mining (TSE), also report that a debt settlement proposal (T.N.M., Dec. 21/93) has been amended after it failed to receive regulatory approval. In lieu of five million shares plus a proposed royalty, Canhorn has agreed to exercise its right to receive a total of seven million United Reef common shares.

Meanwhile, all the holders of Sikaman Gold Resources’ (TSE) 12% debentures maturing Dec. 31, 1992, have exercised their right to convert the debentures into common shares at a conversion price of 50 cents per share. The holders have also exercised their warrants at 60 cents per share. The transactions relieve $800,000 in debt and result in proceeds of $480,000. Sikaman and joint venture partner Sherwood (NASDAQ) have also retained A.C.A. Howe as project manager of their concession in the Central African Republic.