DIAMOND PAGE — New player in N.W.T. diamond hunt

WMC International, a subsidiary of Australian mining giant Western Mining Corp. Holdings, has become a player in the search for diamonds in the Northwest Territories.

WMC recently signed a deal with Leeward Capital (VSE) to earn a 70% undivided interest in several permits and claims within the Dubawnt Lake project area.

WMC can earn its interest by spending $3 million on exploration and paying $250,000 in option payments over the next three years. After WMC earns in, Leeward and its partners will be carried for 30% until a production decision is made. At that time, the partners can either participate for 30% of the project, or revert to a 1.5% gross overriding royalty (in the case of diamonds) or a 3% net smelter return royalty (in the case of precious or base metals).

An exploration program, to be carried out by WMC, will focus on diamonds and copper over an area of about 384,500 hectares. Included in the area are two permits, totaling 36,000 hectares, in which Troymin Resources (ASE) has a 25% interest. The project is between Angikuni and Baker Lakes.

Over the past two years, Leeward has identified several kimberlite pipes in the area through geological mapping, geophysical surveying and drilling. Microdiamonds have also been discovered in this region by both Leeward and the Geological Survey of Canada.

Besides the diamond potential, the area contains several base and precious metal occurrences. Based on the mineralogy, chemistry and geological setting of these occurrences, the area is considered prospective for hosting Olympic-Dam-style deposits. (The Olympic Dam mine, which is owned by Western Mining, contains 2 billion tons grading 1.6% copper with byproduct uranium oxide, gold and silver.)

Ontario and Quebec

* KWG Resources (ME) has begun a $3.1-million exploration program on its Spider #1 project in the James Bay Lowlands area of Ontario. The junior plans to carry out airborne and ground geophysical surveys, and drill about 30 targets. To finance the work, a private placement of 1.2 million shares has been completed. Proceeds will amount to $4 million. In other news, KWG’s joint-venture partner on Spider #1, Ashton Mining of Canada (TSE), has started definition drilling on the Kyle Lake property. * Garde Societe D’Exploration Miniere (ME) will acquire a half interest in seven diamond properties held by Explorations Diabior (ME). The properties include: Le Tac, Lesperance 4, Desmaraisville, Senneterre, Raymond, Eastmain and Montviel 2.

Garde must spend $1 million on exploration over a 3-year period. United States

* BHP Minerals will explore Golconda Resources’ (ASE) Idaho diamond project. Golconda has received permits to drill 10 holes into five different targets. The targets are in an area where previous drilling encountered lamproitic tuffs containing G10 garnets and chromites.

Under the deal, BHP will supply geological and supervisory staff for the drilling, and will analyze the drill cuttings. BHP can, until Dec. 31, acquire a 51% interest in the project by paying all future exploration expenditures.

Overseas

* Independent evaluations of 417 carats of diamond from United Reef’s (TSE) Bamingui project in the Central African Republic have confirmed an average value of US$150 per carat.

The diamonds were evaluated in two separate parcels, with the highest evaluation coming from one parcel of 174 carats having an average value of US$175 per carat. Individual stones had values ranging from US$7 to US$625 per carat.

Meanwhile, United Reef has resumed exploring its Bamingui River property following a break for the rainy season. Sampling is testing a 4-km section of river terraces.

Since September, 314 diamonds (with a combined weight of 123.3 carats) have been recovered from bulk gravel samples processed through the company’s wash plant. The company is installing a gold recovery circuit in the wash plant to allow for systematic evaluation of the property’s gold potential.