EXPLORATION ’95 — Diamond find near Hinton boosts Alberta

The honor of yielding the first significant diamond find in Alberta’s history goes to the community of Hinton.

On virtually a weekly basis, the partnership of Montello Resources (ASE), Troymin Resources (ASE) and New Claymore Resources (VSE) is releasing updates of new diamond discoveries within a narrow area 30 km northwest of Hinton, in the Rocky Mountain foothills.

The guru of Canadian diamond exploration, Charles Fipke, working as a representative of his company, C.F. Mineral Research (CFM), supports the discoveries. He has collected samples from two drainage sites on the property, which had previously yielded three microdiamonds. Fipke’s samples yielded an additional four micros, as well as chromites.

His endorsement has served to encourage local junior companies. “The foregoing results of CFM,” Fipke wrote, “indicate either a diamond-bearing lamproite or kimberlite pipe or a diamondiferous sedimentary horizon to be present between the original downstream site and the site 2 km upstream on the Montello Resources claim group.”

In other words, Fipke has narrowed the search for Alberta’s first official diamond-bearing lamproite or kimberlite pipe to within 2 km. Montello recently tested a 6.6-kg sample, taken farther downstream from current sample sites; it has yielded 10 micros and three grains of gold. Montello spokesman Marc Davis says the company is negotiating with several major diamond players in the hope of entering into a joint-venture agreement. The intention is for the major player to drill the best targets and perhaps conduct bulk sampling.

Davis would not reveal who the majors are but did say that “a couple of the majors we are talking to have an intimate knowledge of the region in which we are working.”

Situated nearby is a joint-venture property belonging to both Saskatchewan-based Cameco (TSE), a uranium producer with gold and diamond interests, and Fipke’s own diamond exploration company, Dia Met Minerals (TSE).

Other companies said to be interested in negotiating with Montello include BHP of Australia (Dia Met’s partner in the diamond discovery near Lac de Gras in the Northwest Territories) and TSE-listed Ashton Mining of Canada (currently in a joint venture with TSE-listed Pure Gold Resources and VSE-listed Riva Petroleum, Bigstone Minerals and Paramount Ventures & Finance on a large land package immediately north of the Montello discovery). Cameco would not comment on whether it is involved in talks with Montello, and Ashton denies having any negotiations with the junior and its partners. However, Ashton President David Hurburgh concedes his company has been following Montello’s progress with interest and that he finds the entire region “quite prospective.”

Hurburgh says that, because of Montello’s discoveries to date, “Ashton is recommending an aggressive program to our partners in 1995.” Ashton has a 51% interest in the property.

Other juniors are also taking note of Montello’s discovery. Takla Star Resources’ (ASE) vice-president, William Bale, says the area where the diamonds were discovered is especially interesting, noting similarities to discoveries in neighboring Saskatchewan.

Takla Star is exploring 80,000 hectares south of Hinton, near Nordegg, where it says it has discovered “very prominent diamond indicator anomalies” along two drainage systems in the Ram River block. Takla’s land package is flanked by another Cameco-Dia Met holding.

Bale agrees that, thus far, indicators in Alberta exhibit a tendency towards lamproite-type formations. Only one commercial diamond mine in the world has a lamproite source (Argyle, in Australia), but Bale says this is no cause for pessimism.

“The one producing lamproite mine in the world was discovered recently and is one of the largest producers of carats,” he said. “I think the geological community will discover that there is a whole spectrum of this hybrid nature of rocks that holds diamonds.”

He added that the book is being rewritten on diamond exploration. Large-scale, non-petroleum mineral exploration is a novelty in Alberta. Two years ago, the province witnessed the largest exploration permit boom in Canadian history. (It was attributed mainly to the fact that fees are comparatively inexpensive in the district.) At the same time, Monopros, a wholly owned subsidiary of De Beers Consolidated Mines of South Africa, made headlines with the acquisition of a property in the High Prairie area. But the province’s diamond play appears to be entering a new phase. The manager of mineral agreements with the Alberta government, Brian Hudson, confirms that Monopros has given back some of its properties in the High Prairie area, and is now concentrating on smaller sites.

Permit holders have about 70% of the province locked up, but not for much longer. Many have reached their 2-year deadline to file assessment reports and show proof of exploration activity.

Some property has already reverted to the province, mainly from regions in the north and west. The government will make those lands available for re-acquisition shortly.

Hudson expects the flood of assessment reports and lapsed permits to arrive between March and May.

— The author is a freelance writer from St. Albert, Alta.