Valerie moves into Manitoba

With diamond exploration heating up in Manitoba, Valerie Gold Resources (VLG-V) has joined the fray and optioned a 165-sq.-km property, 35 km east of Gillam.

The junior can earn a 100% interest in the property by paying $100,000 in cash and issuing 100,000 shares over three years. The property borders on ground held by BHP (BHP-N). Valerie’s immediate plans are to carry out geophysical surveys.

In the past 14 months, some 53 diamond exploration permits, covering 20,000 sq. km of ground in the vicinity of Knee Lake and Fox River, have been staked. The province has not seen this level of staking since the late 1950s. Major players include the Canadian subsidiaries of BHP, De Beers Consolidated Mines (DBRSY-Q) and Rio Tinto (RTP-N).

While it has long been rumoured that the major diamond-producing companies were conducting sampling programs in northeastern Manitoba, it was not until April 1999 that Indicator Explorations became the first party to acquire a permit specifically for diamond exploration.

A 5-year, multi-media geochemical and mineralogical sampling program by the Manitoba Geological Survey, which began in 1996, helped pinpoint Indicator Exploration in the right direction.

A Manitoba government news release quoted Joseph Joyce, regional exploration manager of De Beers Canada Exploration, as saying: “Large parts of Manitoba are covered by Archaen-aged rocks of the Superior Craton. This terrain is considered prospective for diamondiferous kimberlite intrusions. Over the past few years, De Beers Canada Exploration has conducted several waves of reconnaissance, heavy-mineral sampling programs over this area, and, as part of the staged approach to diamond exploration, De Beers has recently secured ground in several areas where follow-up programs are warranted.”

Separately, Kennecott Canada Exploration has been exploring for diamonds in Manitoba for the past two years under the Poplar joint venture with Montello Resources (MEO-V). Based on the results of a regional geochemical survey, the joint venture applied for two large packages of ground, which cover separate and isolated indicator mineral anomalies.

An airborne magnetic gradient survey has revealed 37 high-priority targets occurring in five clusters of magnetic highs or magnetic lows. Ten of these magnetic anomalies have been selected for drilling, which may possibly begin in the weeks ahead.

Among the other juniors that have joined the staking rush is Iriana Resources (IR-T).