KWG enters diamond hunt

Montreal-based KWG Resources (ME) recently acquired a 70% interest in a joint venture to explore for diamonds on several patented and unpatented claims that straddle the Quebec-Ontario border near Kirkland Lake, Ont.

Although KWG will not reveal the exact location of the claims until it ties up more ground in the area, the company says that kimberlite pipes, one of which carries macrodiamonds, are known to occur on the property. A $1.5-million exploration program, including drilling and bulk sampling on the diamond-bearing pipe, is expected to begin before the end of the summer. KWG’s partner is a private company in British Columbia.

Also active in the Kirkland Lake diamond play, Greater Lenora Resources (TSE) says it has found several lamproite boulders in a gravel pit on the eastern portion of its 5,000-acre property in Eby Twp., Ont.

Lamproite, a mafic intrusive, is believed to form in a similar fashion to kimberlite and is also a host rock for diamonds.

Lenora has identified more than 20 magnetic targets that could represent kimberlite or lamproite pipes or dykes. Indicator minerals, including chrome diopside and pyrope garnets, have also been found on the company’s property. Next to Sudbury Contact’s Diamond Lake property in McVittie Twp., Canadian Giant Exploration (VSE) has taken an option on four claims held by Wheaton River Minerals (TSE) and Strike Minerals (CDN).

Canadian Giant can earn a 51% interest in the claims by spending $300,000 over three years, paying Strike and Wheaton $10,000 each when the agreement is signed and another $10,000 on the first anniversary of the deal, and issuing 50,000 shares to each of the joint venture partners.