THE DIAMOND PAGE — Ashton, partners release more results

Further results have been released by the partners involved in the Cross property kimberlite discovery in the Northwest Territories.

Vancouver-based Ashton Mining of Canada (TSE), which made the discovery, can earn a 51% interest in each kimberlite pipe found on the property by completing a 20-ton bulk sample from each. The remaining interests would be held about equally by Tenajon Resources (VSE) and Pure Gold Resources (TSE). The latest results are from composite samples selected from core within specific intervals. As an example, Ashton reports that 28 microdiamonds and three macros (with at least two dimensions greater than 0.5 mm) were recovered from a 35.2-kg. sample from Hole No. 7 on the Cross pipe. The interval was from 47-377 metres, and within crater sediment facies. A 31.8-kg sample from the same hole (within an interval of 377-582 ft.), and still within crater sediment, yielded two micros and no macros. A total of four micros and no macros were recovered from a 23.2-kg sample weight from Hole No. 9 (crater sediment within an interval of 127.5-150.3 metres). This adds to the five micros (no macros) previously reported from a 16.4-kg composite sample from the same hole, but within diatreme and an interval of 150.3-166.2 metres.

Several samples contained fragments and shards in the micro count and, Ashton believes, these may have originated from macro stones. To gain a better understanding of the diamond content, the company will process a larger (2-tonne) sample.

Ashton considers the Cross discovery “encouraging” in that it represents the first diamond-bearing kimberlite discovered in the Territories outside of the “Corridor of Hope” trend, where several advanced projects are situated. Elsewhere in The Northwest Territories

* SouthernEra Resources (TSE) and Caledonia Mining (TSE) have jointly signed an agreement to acquire a 80,000-hectare property surrounding the Drybones Bay kimberlite claims southeast of Yellowknife.

The vendors retain either a 20% participating interest or a 2% gross overriding royalty on diamonds and a 3% net smelter return on other minerals at the feasibility stage.

In other news, SouthernEra notes that since the late winter drilling season began, four new kimberlites have been discovered on ground held partly by the company. These include pipes on: the ATW property (held with Almaden Resources, Troymin Resources and Williams Creek Explorations); the Commonwealth property (with Aber Resources and Kennecott); its own Lac de Gras property; and the Aylmer Lake West property (with Adex Mining and Winspear Resources).

SouthernEra recently intersected kimberlites in two drill holes on the Aylmer Lake West property. The holes are 150 metres apart and sited on a magnetic target

Saskatchewan

* Rhonda Mining (ASE) has selected sites for the first of four core holes on its Fort a la Corne play. This initial drilling will include stepout holes on the diamondiferous sandstone beds discovered in 1993, from which a 2.3-mm diamond was recovered. Rhonda’s 50-50 partner is Aaron Oil (ASE). Rhonda recently raised $1 million through a private placement. *nited States

* Two holes drilled on Golconda Resources’ (ASE) Thorn Creek prospect in Idaho have encountered a lamproitic pipe. The holes were drilled to 180 and 350 ft. and were still in lamproite at depth.

A visual inspection of concentrates produced from drill samples by Lakefield Research confirms the “presence of purple pyropes and green chrome diopsides.” Microprobes of the chromite and ilmenite should indicate whether the source of the lamproite was at a level in the earth that would be conducive to the preservation of diamonds.

Diamonds have been found in a creek draining some of the 16 potential lamproitic pipes found on Golconda’s property.

Overseas

* Southern Copper (VSE) is continuing to search for the primary source of alluvial diamonds in the Coromandel district of Brazil’s Minas Gerais state. Meanwhile, progress is being made on a prefeasibility study for the production of alluvial diamonds along river beds within its concessions. The company says preliminary indicator mineral analysis by C.F. Minerals and Orex shows that diamond inclusion-type garnets and chromites are present in concentrates collected from ultramafic rock units near the alluvial deposits. Results from more recent sampling are expected within the next few months. * Redauram (TSE) has entered an agreement with a subsidiary of Hambros Bank of London, England, whereby the latter will act as agent in a private placement of 4.8 million units consisting of a common share and a warrant. The units will be priced at $1.50 to net $7.2 million.

The proceeds will be used, in part, to finance Redaurum’s share of the costs of expanding its diamond recovery plant in Zimbabwe. The increased capacity will raise the annual diamond recovery to 330,000 carats.

The remainder of the funds will be committed to exploring Redauram’s vast 3.6-million-hectare property in Zimbabwe. Other prospective targets, elsewhere in the world, have also been identified, the company said. * Radisson Mining (ME) is working its diamond placer prospect in the Central African Republic. Initially, Radisson will draw up an inventory of past production and carry out grassroots prospecting. Radisson is banking on the potential for mechanized, large-scale production.

* Canadian Overseas Exploration (VSE) has filed, with the Vancouver Stock Exchange, a brokered private placement of $2.5 million (12.5 million shares at 20 cents each). It also reports that, following its purchase of Sea Diamond Concessions 13a and 13b in South Africa, the company has expanded its marine diamond interest by buying options on four additional properties. Of these, two are in production.

According to the company, diamonds exceeding 5 carats per stone are regularly found on the property.