MINER DETAILS (June 01, 1992)

Eat my words? Not quite, but I’ve spent a lot of time recently explaining my opinion on diamond exploration, particularly in light of the promising results of a bulk sample from the Lac de Gras diamond play.

The 160-ton sample was taken six months ago from Dia Met Minerals’ property about 130 km northeast of Yellowknife, N.W.T., right on the ice road to the Lupin gold mine.

When word finally came that the sample averaged 56 diamonds per hundred tons, and that there were gem-quality diamonds among them, Dia Met’s stock took off. The find has triggered a massive claim-staking spree and tapped into a pent-up buying power among investors that hasn’t been seen for a long while. There’s at least a dozen other junior companies with ground in the area that have benefited.

But before the results of the sample were known, about a month ago, I decried the lack of success with exploration for polymetallic deposits in Canada and said that even successful diamond exploration would not help our mining industry. I stand by that statement — a diamond mine won’t benefit the mills, smelters and refineries that make up such a large portion of the industry today.

Since I wrote that, I’ve been inundated with telephone calls telling me I’m crazy to be opposed to the most exciting Canadian mineral discovery since Hemlo.

But I’m not opposed to the excitement. The truth is, I’m rooting for this diamond play as much as anyone. If Canada can add diamonds to its already long list of mineral products, that will further strengthen the industry’s position as a major contributor to the national economy.

And this particular exploration play could do a lot to open up the area north of Yellowknife. A feasibility study for construction of a port on the Arctic coast in order to serve the region is already under way. The capital cost for a diamond mine — probably around $300 million — would add considerably to the prospect of constructing the port.

I still don’t think a diamond mine is going to aid our struggling mining industry. Our big mining companies haven’t got involved in this play because they’re too busy worrying about the future of nickel, copper, zinc and gold. And I am reluctant to get overly excited about a commodity whose market is manipulated by a cartel.

Even so, I’d still love to see this exploration play pan out — not because the world needs more diamonds, but because it brings cheer to an industry that has been lacking good news for so long.