Vaaldiam explores ground

Vaaldiam Resources (VRL-V) has begun exploring Mooikloof, one of three South African diamond properties it optioned from SouthernEra Resources (SUF-T).

The Toronto-based junior can earn up to a 70% interest in Mooikloof by spending $355,000 on exploration and development before January 2002.

Earlier this year, Vaaldiam optioned the Mooikloof project, as well as the Makoppa and Prieska projects, from SouthernEra by agreeing to spend $2.6 million on exploration over two years. Of that total, $1.4 million must be spent at Makoppa and $875,000 at Prieska. Vaaldiam can earn a 70% interest in each of the properties by spending $2.6 million over two years.

The 23.4-sq.-km Mooikloof project lies 350 km north of Pretoria. It hosts the Mooikloof kimberlite pipe and is adjacent to Oaks, a small diamond producer onwed by De Beers Consolidated Mines (DBRSY-Q).

Vaaldiam will carry out surface sampling on two anomalies 1 km west of the Mooikloof kimberlite pipe, where previous sampling recovered indicator minerals plus two diamonds weighing 0.01 and 0.02 carat. The company intends to drill and bulk-sample any new targets early next year.

SouthernEra acquired Makoppa in 1995, following the discovery of indicator garnets. Situated 210 km northwest of Pretoria, the project consists of two separate properties.

Sampling and limited drilling have revealed two east-trending kimberlite dyke systems. Drilling recovered four stones totalling 0.04 carat. Trenching produced one stone weighing 0.22 carat. Additional drilling and bulk sampling are planned.

Situated 180 km southwest of Kimberley, the Prieska project comprises three properties that encompass the historic Sandrift underground mine, which produced in the early 1900s. A new kimberlite dyke was discovered last year, and there are indications of at least four more kimberlite bodies.

SouthernEra retains the right to buy back a 25% interest in each of the projects upon completion of feasibility studies. To acquire its interest, the company would have to reimburse Vaaldiam for double the amount it spends on the chosen property.

Vaaldiam’s other African diamond projects are Bossieslaagte in South Africa and Boungou River in the Central African Republic. Both are alluvial plays.

Vaaldiam recently added $191,667 to its coffers when a total of 416,667 common share purchase warrants were exercised at 46 per share. The company has some 6.5 million shares outstanding.