THE DIAMOND PAGE — Lack of disclosure dampens diamond fever

Analysts are blaming the “minimalist” disclosure policy of major companies as one reason why speculative interest in Canadian diamond exploration continues to lose momentum. But others point out that the diamond issue sell-off is typical of many exploration ventures once they enter a more mature phase of asset-building.

Speculative investors often have overinflated expectations and that segment of the market is the first to leave once it becomes apparent how much time, expertise and effort are required to find an economic diamondiferous pipe. Juniors not fully committed to a long-term approach are usually next through the exit door.

Northwest Territories

Notwithstanding the fickleness of investors, the pace of activity in the Lac de Gras region shows no signs of slowing down. Drilling is about to begin on the Lupin diamond exploration joint venture, on the western border of the large Monopros block situated west of the Dia Met/BHP discovery claims. The program will be funded and operated by Ashton Mining, which can earn a 51% interest by drill-testing targets and evaluating any kimberlites discovered on the claims through to the point where 20-tonne samples have been collected and evaluated from each pipe. These claims include the Humpy Lake 1 and 2 blocks, the Dick 1 and the RR claim block.

At least 20 priority targets were identified within the Humpy Lake claims. These were delineated based on interpretation of aerial geophysical surveys and the results of 330 geochemical samples collected from all the claim blocks. The summer drilling will focus on 11 targets found on land; those under lakes will be drill-tested after freeze-up.

Junior companies with interests in the Humpy Lake 1 and 2 claims are Pure Gold Resources (TSE), Winslow Gold (VSE), Atna Resources (VSE) and Island-Arc Resources (VSE). Juniors with interests in the Dick 1 are Pure Gold, Paramount Ventures and Finance (VSE), Westview Resources (VSE) and Riva Petroleum (VSE). Riva, Winslow, Island-Arc and Pure Gold have interests in the RR claim block.

In other diamond developments in the Territories:

* No diamonds were recovered from drilling carried out by Leeward Capital (VSE), Skeena Resources (VSE) and Connecticut Development (VSE) on the Outlet Bay diatreme in the Dubawnt Lake region.

The results were disappointing, so Connecticut and Skeena opted to sell their interests in the project to Leeward in return for Leeward shares. Leeward President James Davis says he is encouraged by the indicator mineral suite and the presence of G9 and G10 garnets and picro-ilmenites (previously undetected), which indicates the source region for the diatreme magma was within the diamond stability field of the upper mantle. Davis has a crew on-site evaluating 20 first-priority targets and the most prospective of these will be drilled this winter. Leeward is basing its exploration on a Group Two kimberlite model, rather than the traditional kimberlite found in the Lac de Gras region.

* Exploration Mirandor (ME) has acquired the VG property, in Lac de Gras’s “Corridor of Hope.” The purchase price is 100,000 Mirandor shares payable to privately owned Valley Gold, which retains a 3% royalty.

The 4,940-acre property, immediately south of Barexor Mineral’s (ME) Aylmer Lake property, contains several favorable magnetic anomalies and kimberlite indicator minerals.

Mirandor is now carrying out geological and geochemical sampling programs. Alberta and Saskatchewan

* Goldcap (VSE) has completed a sampling program on mineral permits in the Pembina area, west of Edmonton. Samples from several drainage systems contain distinctive suites of heavy minerals derived from ultra-mafic rocks originating from within the mantle. More sampling will be carried out to localize point sources of the favorable indicator minerals. (Goldcap also has a land package in the Peace River area. Both projects are adjacent to ground held by Dia Met Minerals, which is believed to be pursuing lamproite targets on its various properties in Alberta.)

* Aaron Oil (ASE) and partner Rhonda Mining (ASE) started drilling on their property in Fort a la Corne, Sask. The program will test 27 volcanic, crater-pipe, and fissure targets, believed to represent kimberlite sources. Many of these were delineated by a recent airborne magnetic survey. The partners are also planning magnetic and seismic surveys over volcanic structures on their Carrot River property, 30 miles east of Fort a la Corne. * Barexor Minerals (ME) can earn a half interest in a 115,000-acre parcel 60 km east of Grand Prairie, Alta., in return for the issuance of 350,000 shares of Barexor to a numbered Alberta company.

Orientation sampling on the Smokey River parcel has revealed the presence of diamond indicator minerals and further geochemical and geophysical work is planned.

* Morgain Minerals (VSE) and sister company Orcana Resources (VSE) report that a recent airborne magnetic survey of area A on their property in the Molanosa Arch area of northern Saskatchewan has outlined 34 targets thought to represent kimberlites.

* Analysis of till samples from New Claymore Resources’ (VSE) holdings in central and southern Alberta has revealed the presence of pyrope garnet and chrome diopside. Reconnaissance sampling is continuing.

Ontario and Quebec

* Chesbar Resources (ME) can earn a half interest in a 62-claim property in Le Tac Twp., Que., from Exploration Orbite (ME) by paying $85,000 in cash or shares and spending $1 million on exploration, all over a 3-year period. The property contains several airborne magnetic anomalies similar to those on the adjoining property where Monopros made a micro diamond discovery last winter.

* Forbex Mining Resources (ME) has acquired 35 claims in Nedelec and Guerin twps. in northwestern Quebec, in return for 600,000 shares and a 3% net smelter return to the vendor.

The property, fewer than two kilometres north of KWG Resources’ (ME) play in Guigues Twp., contains several magnetic anomalies thought to represent kimberlites.

Forbex is planning a $150,000 fall program.

* According to management at Regal Goldfields (CDN), two public corporations are considering making a take-over bid for shares of Regal. The company recently recovered seven gem-quality macrodiamonds from its C-14 kimberlite pipe near Kirkland Lake, Ont.

* An agreement to earn an 80% interest in a group of 246 claims in the Quebec townships of Forant, Gascogne, Gillies, Poitou, Anjou and Rochefort (north of Ottawa) has been reached by Societe Miniere Ecudor (ME) with Ressources Kimex (ME). Ecudor is planning a surface program in search of kimberlite. The agreement, which has yet to be approved by regulators, calls for Ecudor to issue 100,000 shares and spend $600,000 on exploration work to be completed within a 2-year period.

* Wiscan Resources (TSE) has concluded an agreement with Exploration Miniere du Nord (ME) giving the former the right to acquire a 50% interest in 182 claims in Le Tac, Le Sueur, Lesperance, Margry and Marin twps., Que. The properties cover 17 circular, positive magnetic anomalies which may represent kimberlites. Geological, geochemical and ground geophysical surveys are under way.

Wiscan has acquired 19 additional diamond properties in the Matagami, Lac Quevillon, Lasarre and Rouyn areas of Quebec.