Diamond exploration spills on to James Bay lowlands

Diamond exploration and land acquisition were reported to be under way in five provinces, in addition to the Northwest Territories, during the week ended Aug. 25.

In Ontario and Quebec, KWG Resources (ME) launched the “Spider #1” and “Spider #2” projects to search for diamonds in the James Bay lowlands and the Kirkland Lake area respectively.

The junior, in partnership with a private British Columbia company, says it needs to raise $5 million to finance the Spider #1 project near the Attawapiskat River, where 40,000 acres have been staked around a Monopros claim group said to contain nine kimberlites. The joint venture plans to drill 30,000 ft. to test airborne geophysical targets thought to represent diatremes, and continues to acquire ground in the area.

Also holding ground around the Attawapiskat River is Continental Precious Minerals (ME), which secured control of 16 claims when partner BP Canada pulled out of mineral exploration last year. The senior spent $10 million exploring for diamonds in the area, and identified several drill targets. Any future mine development, however, will be subject to approval by the Attawapiskat native band, says the band’s deputy chief, who attended a recent dog-and-pony show hosted by KWG in Timmins, Ont.

Further south near Kirkland Lake, Ont., the joint venture expects to spend $2.5 million to bulk sample kimberlites confirmed by Monopros in Guiges Twp., Que., and Bucke Twp., Ont. An airborne survey to identify additional targets is scheduled to get under way shortly.

KWG says it’s considering establishing a diamond extraction plant in the Haileybury-Cobalt area to process samples from both projects. Meanwhile, Jean-Paul Roy, as part of a consortium of associates, has staked up 10,000 acres around the KWG ground in Guiges Twp.

To the west, Surf Oil has acquired additional claims in the southeastern portion of Manitoba to bring its total landholdings in the area to 33,280 acres. Surf plans to begin prospecting on the most accessible claims this fall.

In Saskatchewan, Aaron Oil (ASE) has entered into an agreement to earn a 14% interest from Rhonda Mining (ASE) in certain lands owned by Claude Resources (TSE) at Sturgeon Lake. A 3-hole program planned for late September will target a magnetic ring structure up-ice from a diamondiferous kimberlite erratic (boulder).

In the Fort a la Corne region, where partners Uranerz Exploration and Development and Cameco (TSE) are drilling (T.N.M., Aug. 24/92), CopperQuest (CDN) has recently acquired a land position covering a magnetic target. Diamond hunters are also moving into Alberta. In the southwest, Rich Minerals (ASE) has applied to acquire mineral permits totalling 300,000 acres. And 115 miles southwest of Jasper, Alta., Takla Star Resources (ASE) has filed permit applications for a 700,000-acre area adjacent to a Cameco claim block. Edmonton-based New Claymore Resources (VSE) has applied for a 173,000-acre area next to Takla’s claims.

In 1990, Monopros acquired about 2,300 square miles in the Peace River area of northern Alberta. No significant results have been released from the property.

In the Northwest Territories, Kalahari Resources (VSE) reports that joint venture partner Kennecott has established a 10-man base camp on MacKay Lake near the northern boundary of the 550,000-acre property.

The Kennecott personnel are ground checking seven circular airborne anomalies outlined by Euler Deconvolution, a geophysical method that filters out the magnetic signatures of rocks that do not resemble kimberlites. More airborne results are expected shortly.

Canadian companies are also scooping up diamond concessions overseas. Most recently, United Reef Petroleums (TSE) agreed to option 50% of Sherwood’s (NASDAQ) interest in an alluvial diamond property in the Republic of Central Africa.

The diamonds recovered from the pits so far are all gemstones and, in 1989, were valued at $100 per carat. Diamond exploration expert Mousseau Tremblay, in association with A.C.A. Howe International, has agreed to supervise United Reef’s exploration program.

Sherwood acquired an 80% interest in Howe Centrafique, whose main asset is the 195-square-mile diamond concession, by issuing stock valued at $4-10 million. United can earn a 40% interest in Howe Centrafique by spending $790,000 on exploration before Feb. 1, 1994.