DIAMOND PAGE — Dia Met clarifies media reports on Lac de

The Lac de Gras region of the Northwest Territories received some international attention recently as BHP held its annual meeting in Melbourne, Australia.

A news service reported BHP Chairman Brian Loton was “unsure” whether the Dia Met project would proceed. BHP’s partner at Lac de Gras, Dia Met Minerals (TSE), was flooded with calls from nervous shareholders. But as it turned out, Loton’s remarks were taken out of context. He called preliminary results of samples from Lac de Gras “encouraging” but noted that more information would be required from the expanded evaluation program, which includes bulk samples from underground workings and large-diameter drills. Northwest Territories

* Sources in Yellowknife say the pace of activity near Lac de Gras suggests a military operation, what with BHP and Kennecott moving equipment to their respective sites for bulk sampling. Kennecott is testing the Tli Kwi Cho (DO-27) target on its joint-venture project with DHK Resources, while BHP and Dia Met are bulk-testing several diamondiferous pipes on their joint venture. * While these two projects are clearly the most advanced in the region, results are anxiously awaited from several new kimberlite discoveries in the Territories. Winspear Resources (VSE) and International Vestor Resources (VSE) discovered a kimberlite while drill-testing a geophysical target on their Snare Lake property in the Humpy Lake region, west of Lac de Gras. And partners Tanqueray Resources (ASE), Fibre-Klad Industries (ASE) and Mill City Gold (ASE) completed a 5-hole program to test three anomalies (both geophysical and geochemical) at their Yamba Lake joint venture. Three separate kimberlite pipes were discovered.

* A 15-hole program on Pure Gold Resources’ (TSE) Humpy Lake 1 and 2 claim blocks has failed to locate any kimberlite bodies, reports operator Ashton Mining of Canada (TSE).

A total of 15 anomalies were tested, based on down-ice kimberlitic indicator minerals, as well as coincident airborne geophysical and detailed ground magnetics. The land-based targets were drilled, but no kimberlite was intersected. Some higher-priority targets beneath lakes will be drilled in mid-November when the ice is thick enough to support drilling operations. * Gerle Gold (VSE) realized gross proceeds of $2.5 million which will be used to explore for diamonds in the Territories. The junior now has interests in 148,642 hectares which were selected on the basis of anomalies identified in each claim group. Some of the projects are joint ventures with Teck (TSE) and Cominco (TSE). More recently, Gerle Gold entered an option agreement with Echo Bay Mines (TSE), allowing it to earn a 50% working interest in properties near Itchen Lake and Back River. This land package is in the Northwest Territories, not in Saskatchewan as erroneously reported in this column last week.

* A summer field program by Leeward Capital (VSE) on its properties near Dubawnt Lake has identified 21 first-priority targets and 51 secondary ones. Of the first-priority targets, nine are exposed pipes, 11 were defined by aeromagnetic surveys and one was identified from core drilled in 1981. All 21 targets have been mapped and sampled. Analytical results are pending. * Kingswood Resources (ASE) has acquired an additional 13,962 hectares near Lac De Gras. The claims are about 20 km south of the Lupin gold mine. Numerous circular magnetic features have been outlined by airborne geophysical surveys.

On the company’s other property, to the northeast, 80 magnetic features have been identified, several with coincident indicator mineral anomalies. Earn-in partners Layfield Resources (VSE) and Monument Resources (the latter based in the U.S.) have begun detailed sampling on these claims.

* Troymin Resources (ASE) reports that the $110,000 received from a recent a private placement will be used mainly to finance an airborne geophysical survey at Bathurst Inlet and carry out ground work on its Dubawnt Lake holdings. Some of the funds will also be used to evaluate diamond properties in Alberta, Saskatchewan and Ontario.

Saskatchewan

* Partners Rhonda Mining (ASE) and Aaron Oil (ASE) report that a recent hole drilled to test a geophysical anomaly near Fort a la Corne has intersected 33 metres of alternating kimberlite breccia, tuff, sedimentary kimberlite and mudstone.

The kimberlite material is being analysed and more drilling is planned. * Guardian Resource, a subsidiary of Guardian Communication Industries (VSE), has bought 1,025 hectares near Fort a la Corne from Rhonda Mining (ASE) and Aaron Oil (ASE). Guardian now has an interest in about 345,000 hectares in the region.

A recent airborne magnetic survey has delineated two “bullet” anomalies on these claims and a ground magnetic survey is under way to define drill targets further.

Ontario and Quebec

* Noront Resources (VSE) has ground-located an elliptical magnetic anomaly with a positive rim and negative core on its 777-hectare property in Ruette Twp., near Lebel sur Quevillon, Que. The company plans to sample, prospect and, if warranted, drill-test the anomaly.

* Master-Plan Mineral & Petroleum Developers (ASE) has a half interest in 10 separate properties, totaling 2,987 hectares, near Le Tac Twp., Que. These properties cover several circular magnetic anomalies.

Master-Plan has also begun ground surveys on its diamond claims near Jellicoe, Ont.

* Project operator Societe Miniere Ecudor (ME) has begun sampling on its Bryson-Lynch property near Maniwaki, Que. These holdings are near those of Bryson-Burke Exploration, a private company, which reported finding about 160 micro-diamonds in 12 kg of alluvial material.

* Exploration Mirandor (ME) has acquired a half interest in a 26-claim property in Le Tac Twp. The acquisition calls for the issuance of 50,000 Mirandor shares and $5,000 to Exploration Orbite V.S.P.A. (ME). United States

* Golconda Resources (ASE) has received analytical results on three samples collected from two lamproitic pipes discovered on its Goose Lake Diamond property in Idaho. In addition to detecting pyrope garnet and chrome diopside, microprobe results show that chromite grains have a similar composition to chromites found as inclusions in diamonds worldwide. To date, the company has delineated six lamproitic pipes, and 10 other potential pipes remain to be investigated.

Overseas

* A recent financing raised $3.4 million for Argosy Mining (VSE), formerly known as Black Rock Nevada Mines. The company has the right to earn a 40% interest in eight properties in Zimbabwe and Tanzania from London-based Reunion Mining. The joint-venture properties total 23,849 sq. km and contain five kimberlite clusters, 23 kimberlite pipes and more than 100 exploration targets.

Argosy President Yale Simpson says exploration expenditures over the next year will exceed US$100,000 per month. A field camp and on-site lab are being established in Tanzania, where the Mabuki project and its two main kimberlite clusters are situated. The company has three main projects in Zimbabwe: Gwaii, Quest and Hwange.

* KWG Resources (ME) has acquired the mineral rights to 35,000 hectares of the Paranaiba River, near Minas Gerais, Brazil. The area, which is prospective for diamonds and gold, covers about 24 km along the river and its terraces.

KWG will earn 75% of the net profits from these concessions until it has recovered its capital investment, and 50% thereafter.