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TABLE OF CONTENTS Nov 8 - 14, 1993 Volume 79 Number 36 - 0 comments

DIAMOND PAGE -- Details are sketchy as Cons. Pine awaits

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By: by Vivian Danielson and Brian Christie
1993-11-08
Management of Consolidated Pine Channel Gold (VSE) expects it will be several more weeks before details are available on the Tobin Lake project where a hole has reportedly intersected pyroclastic kimberlite material.

Pine Channel President Dale Hoffman declined to comment on the length of the intersection. "We would just as soon not (comment), as we are still securing our ground position," he told The Northern Miner. The project is a 50-50 joint venture with Golden Peaks Resources (VSE).

The partners say the kimberlitic material contains "numerous grains of what appear to be indicator minerals." The first target was intersected north of the Saskatchewan River, 110 km northeast of Fort a la Corne where diamond discoveries have been made by other groups.

The second target was drilled on ground held by Pine Channel at the western end of the Molanosa Arch. The garnets identified in the core are reported to be eclogitic. The thus-far sketchy information makes it difficult to assess the significance of these discoveries.

Northwest Territories

* Partners Aur Resources (TSE), Thunderwood Resources (TSE) and Consolidated Abitibi Resources (ME) have entered an agreement with SouthernEra Resources (TSE) with regard to their claims near Basler Lake. The partners and SouthernEra can earn a 20% interest in each other's claims by spending $300,000 by June 30, 1994, on exploration on their own claims. Once such an interest is earned, a joint venture will be formed among the four companies to continue exploration of the relevant claims. The properties are 177 km northwest of Yellowknife. The four parties have also agreed that any claims acquired in future will be subject to a 50-50 joint venture. * There is still no news about Winspear Resources' (VSE) previously reported kimberlite discovery near Humpy Lake, west of Lac de Gras. President Randy Turner expects results to be available by the end of November. * Analyst David James of Richardson Greenshields has published a thorough overview of all reported kimberlite discoveries in the Lac de Gras camp, where two major bulk-sampling programs (by BHP Minerals-Dia Met and by Kennecott and its partners) are under way. James views this as "prefeasibility work" and predicts actual production at Lac de Gras could be seen within four years. He notes there is a distinctly competitive air surrounding the two programs, which isn't surprising, considering they are being financed by two of the world's largest companies.

* It should be noted that the recent lawsuit launched by Equity Investments against Dia Met Minerals (TSE) and associates (T.N.M. Nov. 1/93) is expected to affect neither Dia Met's land holdings nor the work programs of the Dia Met-BHP Minerals joint venture.

* A no-less significant exploration development is the Yamba Lake project, involving three Alberta-listed juniors: Tanqueray Resources, Fibre-Klad Industries and Mill City Gold Mining.

Sources say major companies are actively courting the three juniors. Mill City has the largest stake (50%), with Fibre-Klad at 21% and Tanqueray with a 29% diluted interest.

A total of 191 diamonds (152 micros and 39 macros) were recovered from 161.6 kg of core. Of those, 188 were described as clear-white in color and clarity. Results from two other kimberlite pipes are expected shortly. * Canso Explorations (VSE) reports that no kimberlites were intersected in the initial 4-hole program by Winspear Resources, operator of the Courageous Lake joint venture. This Lac de Gras project also involved Consolidated Newgate Resources (VSE).

Alberta

* Troymin Resources (ASE) has entered an option agreement with a publicly listed company, which allows that company to earn a half interest in Troymin's 200,000-km Hinton property.

To earn its interest, the public company has paid $11,000 cash and will make additional payments of $289,000, as well as fund $1 million in exploration by March 31, 1995.

The Hinton property is on the eastern boundary of a large permit held by Cameco (TSE) and Dia Met Minerals.

Troymin has also entered a private placement of flow-through financing with the Canadian Diamond Investors Fund Limited Partnership. The placement consists of a minimum of $100,000 and a maximum of $500,000; the funds will be used to finance exploration on the company's Canadian diamond holdings. Colorado

* Royalstar Resources (VSE) and Dia Met Minerals will evaluate the potential of the Sloan property in Larimer Cty. Under its terms, Dia Met will earn a 51% interest by evaluating and processing an initial 45.4-tonne sample at its plant in nearby Fort Collins. This smaller surface sample, from the Sloan diatreme, will be followed by a larger, 2,730-tonne underground sample. Dia Met will fund the first evaluation, Royalstar the second. Royalstar will do so by paying a rental fee to Dia Met for use of its processing plant. Dia Met will then be able to obtain a 51% interest in the joint venture. In return, it must repay Royalstar 76% of the costs incurred to evaluate the larger sample. If it elects not to participate, the joint venture will be terminated.

The Sloan diatreme was explored previously. In the mid-1980s, a 2,425-tonne bulk sample yielded more than 21,000 macros weighing about 313 carats. The overall grade (11.74 carats per 90.9 tonnes) was considered too low to justify development. However, Royalstar's tests are aimed at determining if some of the higher-grade facies of the diatreme could be selectively mined. Alaska

* Last August, Alpine Exploration (VSE) reported it had discovered a diamond in placer concentrates from its Gold Dust property. The diamond was identified by analysts at a Vancouver-based lab and an announcement was made with the approval of the lab. However, Alpine was recently informed by the lab that the stone was, in fact, not a diamond, but a zircon. Nevertheless, Alpine President Willis Osborne says diamonds have been found in the district and the company will continue to test the property for diamonds.



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