Drybones Bay find fuels staking rush near Yellowknife,

A staking rush is heating up near Yellowknife, N.W.T., fueled by reports that a local prospecting syndicate intersected kimberlitic material while drilling a blind geophysical target about 25 km southeast of the city. The find was made at Drybones Bay, on the east shore of Yellowknife Bay.

The single exploratory hole is reported to have gone through 40 metres of water and 103 metres of overburden before intersecting 24 metres of what is described as kimberlitic material.

Andrew Muir, mining analyst for Canaccord, said core was sent to a lab for indicator mineral and thin section analysis. “This work will confirm whether the material is indeed kimberlite, and whether its geochemistry is consistent with that of the diamond stability field within the mantle,” he said. The core has been examined by Jennifer Pell, district geologist for the N.W.T. geology division of DIAND, who said indicator minerals such as pyrope garnets, ilmenites and chrome diopside were visible in hand samples. Preliminary examination of some thin sections also indicates the drilling had intersected kimberlite, with the amount and type of alteration suggesting the material was derived from the diatreme or crater facies.

At presstime, results were in hand from whole rock and major and trace element chemistry. “The results plotted very clearly in the kimberlite field,” Pell said. “Based on these results and the petrographic descriptions, we are 99% sure this is a kimberlite and not some sort of lookalike.” She stressed, however, that these results are preliminary and will be confirmed by further analyses.

The target was drilled by David Smith, a local prospector still busy staking more ground in the region. Several public companies have also moved quickly to secure ground nearby. Major General Resources (VSE) bought a half interest in 17 separate claims near the reported discovery and is continuing efforts to acquire more ground. Major General’s partner is Avance International (ASE), which has the option to earn the other half interest. Gerald Blackwell, president of Gitennes Exploration (TSE), said his company and Aber Resources (TSE) have jointly staked about 40,000 hectares in the immediate area of the discovery.

Elsewhere in the Northwest Territories

* SouthernEra Resources (TSE) has reached an agreement with Kalahari Resources (VSE) and Kennecott Canada whereby SouthernEra can take over management and increase its interest to 70% from 19% in Kalahari’s MacKay and Back Lake projects. This interest is subject to a back- in right by Kennecott. The two projects lie south of the promising Tli Kwi Cho discovery. To date, only the northern half of the two properties has been covered with airborne geophysical surveys, and SouthernEra is carrying out airborne surveys over the southern areas.

Several drill targets have been outlined on the northern claims and SouthernEra expects additional targets will be delineated once the southern blocks have been surveyed.

* A private company headed by Geddes Webster (of Windy Craggy fame) is proposing to build a custom bulk-sampling plant on a recently acquired 16-metre industrial lot in Yellowknife. The plant will process kimberlites to recover diamonds, thereby determining their economic potential. Capital costs are estimated at $9 million and the operation will employ 25-30 people. Adamantis Inc. plans to start construction this summer and the plant is expected to process its first kimberlite samples early next year. Initial capacity will be up to 270 tonnes per day.

“We got involved in this venture because we believe there is a deficiency of processing capacity,” Webster told The Northern Miner. “We’ve done (independent) market surveys and engineering studies and have also talked to many of the juniors exploring for diamonds.”

* At its annual meeting on May 5, Ashton Mining of Canada (TSE) will release details of a kimberlite discovery. The find was made at the Cross Lake property in the Humpy Lake region, west of Lac de Gras, N.W.T. Ashton’s junior partners are Tenajon Resources (VSE) and Pure Gold Resources (TSE). Ashton is expected to announce whether or not the drilled kimberlite body contains diamonds, and if so, how many.

* Major General Resources reports that till sampling on the 75-N and 75-O areas of its Artillery Lake concession has identified several indicator mineral anomalies. The till samples were collected to evaluate 130 airborne magnetic targets that were identified by SouthernEra Resources in 1992 and 1993.

Major General and the International Diamond Syndicate (IDS) hold the option to earn 24% and 16% interests, respectively, in the 75-N property and 29% and 20%, respectively, in 75-O. In return, they must spend $4.3 million on exploration by April 15, 1996. SouthernEra will retain a 60% interest in 75-N and 51% in 75-O. IDS is held 40% by Teryl Resources (VSE), 40% by Calco Resources (VSE) and 20% by Agate Bay Resources (VSE).

Major General, acting as operator for the joint venture, has acquired an additional 32,000 hectares surrounding the area where the indicator minerals were found.

Alberta

* Marum Resources (ASE) has received results from the airborne geophysical survey on its Pinhorn property in southern Alberta. A combined magnetic-electromagnetic survey was selected since potential diamond host rocks on the property include highly magnetic, resistant igneous pipes, as well as non-magnetic, recessive igneous breccias.

Total field magnetic data indicate that more than 30 priority targets are on the 175-sq.-km property.

* Bulk-sample results have been received from Northside Resources’ (ASE) project in Pembina. Four sites were investigated, with the Beaver Creek area south of Whitecourt returning the best results. The recovery of indicator minerals from this site suggests a local kimberlite source. A followup airborne magnetic survey is planned.

* Montello Resources (ASE) is carrying out an airborne geophysical survey on its 92,000-hectare property 10 km northwest of Hinton. The junior can earn a half interest from New Claymore Resources (VSE) by paying $20,000 cash, issuing 100,000 Montello shares and spending $460,000 on exploration over two years.

Saskatchewan

* Two associated juniors, Bakertalc (ME) and Pure Gold Resources (TSE), have each acquired an option to earn an 8.75% interest in diamond prospects in the Candle Lake-White Swan area of north-central Saskatchewan. The land position totals 360,000 hectares and is next to the kimberlite discoveries reported by War Eagle Mining (VSE) and Great Western Gold (VSE).

Ontario and Quebec

* An airborne magnetic survey on Societe Miniere Garde’s (ME) Gaudreault Creek property in West Quebec has identified 16 possible targets thought to represent kimberlite. Soil geochemical surveys are expected to begin shortly. * Further drilling by KWG Resources (ME) and Spider Resources (ASE) has confirmed three new kimberlite discoveries on the Spider No. 2 project near Temiskaming, Que. Two new kimberlite bodies have been confirmed within the 12-hectare Troika feature, in which an initial discovery was previously announced. In addition, another kimberlite has been discovered 300 metres northwest of the Troika. Several indicator minerals, including pyrope garnet, olivine, and chrome diopside, have been identified in the drill core. The partners are continuing to explore other properties in the vicinity of this new discovery.

* Mountain Lake Resources (VSE) intends to acquire Inco’s (TSE) Indicator Lake project in the Otish Mountain area of north-central Quebec. Past work by Inco in the late 1970s identified a kimberlite pipe on the 45,000-hectare property. Several kimberlite targets have been identified from previously flown geophysical surveys.

Under the deal, Mountain Lake will issue Inco 200,000 common shares, pay $125,000 cash and spend at least $1 million on exploration over the next 12 months. Inco retains a 5% gross proceeds royalty.

Mountain Lake will also grant Inco an option to buy up to 2 million shares at an as-yet-undisclosed price. In addition, Inco can provid
e up to half of any financing required by Mountain Lake.

Inco will manage exploration of the project.

United States

* Royalstar Resources (VSE) has extracted 1,800 tonnes of a planned 3,000-tonne underground bulk sample from the Sloan diamond property in Larimer Cty., Colo. So far, the work has advanced 90 metres into eclogite-bearing kimberlite.

Less than 10% of the bulk sample has been processed through a recovery plant situated at the Sloan property and owned by Dia Met Minerals (TSE). Royalstar is encouraged by the preliminary results. Details as to the number of diamonds recovered, and their quality, will be released once the entire bulk sample has been processed. Dia Met can earn a 51% interest in the project. Overseas

* Exploration sampling has begun on United Reef’s (TSE) Bamingui-Bangoran property in the Central African Republic. The goal is to expand the diamond resource that was outlined last year. To date, 10 sample locations have been excavated and gravel samples have been stockpiled for processing. In addition, geological mapping is under way on the south bank of the Bamingui River, where no previous sampling has been performed. Sample excavation in this area will begin shortly.

Also, mechanical mining of previously delineated diamond resources on the north bank of the Bamingui river will begin in May.

* Shares of Diamond Fields Resources have begun trading on the Toronto Stock Exchange. The company has interests in kimberlite deposits in South Africa and Sierra Leone, as well as an offshore marine concession in Namibia. * Marlat Resources (CDN) has entered negotiations with Asahi Mining of Venezuela to acquire an interest in nine concessions in the Icabaru area of that country. The transaction calls for Marlat to acquire an interest in the concessions in conjunction with Brothers Exploration SRL, a Venezuelan mining company.

* Gincho International Ventures (VSE) has arranged a $612,000 private placement of 1.2 million units at 51 cents each. A unit will consist of one share and half a warrant, exercisable at 60 cents for one year. Some of the proceeds will be used to fund work on holdings in the Central African Republic. Gincho can to earn up to a 40% interest in a permit held by United Reef.

* Southern Copper (VSE) has acquired additional properties in Brazil, including claims that cover two known kimberlite intrusions in Minas Gerais. Samples from outcrop exposure of one pipe were sent to C.F. Mineral Research of Kelowna, B.C., which reportedly has confirmed that the intrusion is similar to diamond-bearing kimberlites worldwide. Samples from other targets will also be sent for analysis.