EXPLORATION ’94 — Exploration permits snapped up in Alberta

Sometimes the strongest message is in what is not said.

The overall silence of major companies exploring for diamonds in Alberta is causing some juniors to wonder what, if anything, they are holding back. After all, exploration permits continue to be snapped up despite the lack of major announcements.

Last year, 1,140 applications for permits were made — second only to the record number of permits issued in 1992. The 10 million hectares acquired represents 20% of the currently available Crown land. And according to Brian Hudson, manager of mineral agreements for the Alberta Department of Energy, no exploration rights have been forfeited.

Among the juniors active in Alberta’s diamond play is Northside Resources (ASE), which holds 650,000 acres northeast of Edmonton, near Whitecourt. Northside spokesman Kent Pohl thinks the lack of news coming from senior companies such as Dia Met Minerals (TSE), Cameco (TSE) and Monopros — despite activity on their properties — raises questions.

When asked if he is surprised no one active in the province has yet discovered a kimberlite or lamproite pipe (which are the main targets of diamond exploration), Pohl admits: “I think it is somewhat mysterious that no one has made an announcement yet.”

New Claymore Resources (VSE) President Anthony Rich says the belief that the majors are purposely holding back information is plausible. “They wouldn’t have to announce it, even if they had a diamond pipe.” He hopes, however, that some findings are released soon, as this would stimulate exploration. Both Pohl and Rich note that Dia Met President Charles Fipke has commented that his properties in Alberta are yielding better results at this early stage than his proven properties in the Northwest Territories. It took Fipke 10 years to find the source of indicator minerals in the Territories, but his perseverance has undoubtedly paid off with the huge success of his diamond find near Lac de Gras.

Given Fipke’s proven track record, Alberta juniors are hanging their hats on his comments.

Pohl suspects the majors are purposely saying as little as possible to weed out the speculators who may own promising properties but who do not have the funds required to conduct geophysics. If they give up these properties, more ground will be made available to those who can afford to conduct the exploration, specifically the major mining companies.

“The majors are waiting for the juniors to drop out, then they will take over their properties,” Pohl says.

The weeding will start this December when required assessment reports, including amounts spent on exploration, begin arriving at the Energy Department.

For its part, Northside has no intention of dropping out. “We want to be in the thick of things if anything happens,” Pohl says.

The company is concentrating on lines of drainage where indicator minerals tend to occur. But it is focusing on more than diamonds. “Even a gravel pit or silica sand is worth a lot of money,” says Pohl, “if you can find it.” Thomas Bryant, a director and geologist with Northside, has recommended the company proceed with aeromagnetic surveys of specific areas, now that it has conducted ground-level sampling.

Speaking on behalf of Cameco, Rita Mirwald says juniors are exaggerating when they say information is being held back. “There’s just not much to report.” Cameco owns (jointly with Dia Met) exploration rights on properties near Jasper National Park.

Even if there were something to report, she says, it is natural to stay quiet until “you’ve really got something.”

While juniors may feel frustrated at the lack of information available, the fact is Cameco feels no burning need to report any of its findings in the short term. “We do have the luxury of knowing that our share prices are carried by our uranium holdings,” says Mirwald. Cameco’s shareholders expect to receive constant reports on those activities, and not diamonds. Cameco is active on its property, however, having gathered basic samples next to the park buffer zones last autumn. Its goal was to discover any signs of kimberlite or host rock. By this spring, it will have narrowed its focus, giving up what it considers to be geologically unfavorable and concentrating more seriously on specific sites.

“We, together with our partner Dia Met, are still interested in pursuing the property’s potential,” says Mirwald. “We’re still curious.”

New Claymore’s Rich, who owns exploration rights comprising 5.5 million acres in southeastern Alberta, says few permit holders are actually conducting field tests. So far, he has gathered about 1,000 till samples from about 70% of the area and 60% have been analyzed for indicator metals. From those results, he is plotting specific drill targets, having so far determined seven.

“There are some targets I’m dying to drill,” Rich says, but he admits that a sufficient number have to be established before drilling can be economical. Most of the diamond exploration in Alberta can be said to have taken the geographical shape of a giant “L.” Properties are concentrated along a 80-km band on the western border and a 65-km band on the southern border. Other activity is focused in the northeastern corner of the province. — The author is a freelance writer based in St. Albert.