Wawa area yields more diamonds

Activity at two separate projects continue to demonstrate the diamond potential of the Wawa area of northern Ontario.

At the GQ property, Band-Ore Resources (BAN-T) has picked another 279 diamonds from 14 of 24 samples, each of which weighed 24 kg. Ten stones had at least one dimension exceeding 0.5 mm, with the largest measuring 1 mm long by 0.8 mm in the other two directions. That macrodiamond was derived from a panned concentrate, as opposed to coming from an outcrop.

Most of the diamonds came from two samples of heterolithic breccia outcropping several hundred metres north of the property’s original discovery. The samples yielded nine macros and 198 microdiamonds, including several coloured stones.

About 2 km northeast of the original discovery, four samples yielded 39 micros. Results from other samples are pending.

Band-Ore has now sampled more than 100 showings on the property and, in the process, has collected 177 samples weighing 5.3 tonnes. This includes the original, 63.4-kg sample, which yielded 10 macros and 35 micros.

Band-Ore secured a 100% interest in the 25-sq.-km GQ property a year ago, following the discovery by prospectors of several lamproite showings along newly exposed logging roads. The property lies 15 km north of Wawa.

Meanwhile, 10 km farther north, the Canadian arm of London-based Rio Tinto (RTP-N) has taken a shine to the Festival property of Pele Mountain Resources (YPN-V). In exchange for a limited but exclusive right to negotiate a joint-venture agreement, the major will cover the cost of processing the junior’s latest bulk sample.

The sample, weighing 9.4 tonnes, comprises fresh and weathered xenolith-bearing lamprophyre from the Destiny showing. Results are expected in a month, after which time Kennecott has 60 days to hammer out an agreement with Pele Mountain.

In early January, surface sampling yielded 42 diamonds from Destiny, bringing to 108 the number of stones liberated to date. The largest measured 1.09 mm in its longest dimension.

The lamproite is associated with a series of fault-controlled dykes that strike roughly eastward and are themselves associated with a larger-scale fault measuring 1,000 metres along strike. The showing measures 18 metres across before disappearing southwards underneath a lake.

Two other showings are known on the property, though one, Jubilee, has failed to yield any diamonds since a yellow macro was discovered there last summer. Results for other samples are pending.

The more recently discovered PC showing fared better, having yielded two macros and seven micros from 32 kg of weathered lamprophyre. Seven of the stones are believed to represent clear-white fragments of larger stones.

The PC showing is 10-15 metres wide and strikes northeast, perpendicular to the linear fault associated with Destiny. It remains open to the north.

Lakefield Research is analyzing the Destiny sample and expects the final cost to ring in at about $25,000. Pele Mountain is required to reimburse Kennecott under certain circumstances.

Several other companies exploring in the Wawa area have met with various degrees of success, lamphrophyres being a common denominator, and the region’s potential for kimberlites has not been ruled out (T.N.M., Dec. 4-10/00).

To continue its search, Spider Resources (SPQ-V) has closed an arm’s-length financing comprising 5 million units priced at 10 each. A unit consists of one flow-through share and one warrant, with the latter entitling the holder to buy a common share within 18 months of the deal’s closing, at 12.

The deal, which has yet to be approved by regulators, was brokered by Dundee Securities. In return, the firm receives a broker’s warrant that can be exercised within 18 months of closing for 500,000 shares and an equal number of warrants at 10 per share.