THE DIAMOND PAGE — Marine diamond concession in S.W. Africa

Globe-trotting BHP Minerals plans to increase its exposure to diamonds by participating in a new joint venture aimed at exploring and developing a marine concession in Namibia.

The offshore property, wholly owned by Diamond Fields Resources (TSE), consists of 660 sq. km along the Namibian coast from Diaz Point (south of the deep-water port of Luderitz) to Hottentots Bay in the north. The concession begins at the shore and extends to a point 12 km from the coastline. Together, BHP and its Johannesburg-listed partner, Benguela Concessions, can earn a 50.1% interest in the project, known as the Luderitz joint venture. In return, they must fund and carry out exploration, including sampling and bulk-testing. The work is expected to result in a bankable feasibility study that provides for a minimum annual production of 100,000 carats. Each party will be responsible for funding its proportionate share of capital costs. Geophysical surveys are scheduled to begin July 31, followed by coring and sample drilling, all of which will be managed by BHP and Benguela. In a separate venture, the two companies are exploring other marine concessions along the coast of southern Africa. (BHP is also involved in primary diamond projects, the most advanced being a joint venture with Toronto-listed Dia Met Minerals in the Lac de Gras region of the Northwest Territories.)

Northwest Territories

* Kimberlite has been intersected in two drill holes on a single target at the Aylmer Lake West property. Three juniors — Adex Mining (TSE), SouthernEra Resources (TSE) and Winspear Resources (VSE) — have roughly one-third interests in the project.

The two holes are 150 metres apart and were sited on a magnetic target exceeding 500 metres on its longer axis. The first hole intersected 40 metres of kimberlite, while the second intersected a similar amount and is still drilling in kimberlite.

* Meanwhile, drilling is expected to begin shortly on the southern portion of Barexor Minerals’ (ME) Aylmer Lake property. A previous program on the northern portion tested eight geophysical anomalies with negative results. * Results are pending from the kimberlite discovery, near Lac de Gras, announced by Aber Resources (TSE) earlier this month. The kimberlite is believed to be diamondiferous, with further details expected shortly. * Joint-venture partners Mill City Gold (VSE) and Tanqueray Resources (ASE) are talking with international mining groups interested in advancing their Yamba Lake diamond project, 40 km northwest of the Lac de Gras camp. The two juniors discovered three diamond-bearing kimberlites on their 61,000-hectare claim block, including the Torrie pipe from which a 27.4-tonne bulk sample was recently extracted. Results are expected in early June. A fourth kimberlite, called the Eddie pipe, was recently discovered 6 km south of the first three.

* Citadel Gold Mines (TSE) is planning a summer field program on its 124,800-hectare permit near the Brodeur Peninsula. The program will consist of airborne geophysical surveys combined with prospecting and sampling of the beach gravels and suspected kimberlite outcrops at the north end of the permit area.

United States

Royalstar Resources (VSE) is nearly finished a 3,000-tonne bulk sample from the Sloan kimberlite in Larimer Cty., Colo. An independent report on diamond sizes, grade and quality will be issued as soon as processing and stone evaluation are completed.

Royalstar recently discovered a 5.51-carat, white, high-clarity diamond from the property.

The ground was previously explored by other groups, who found the pipes to be uneconomic. Royalstar’s program is aimed at determining if higher-grade portions of the pipe can be mined selectively.

Overseas

* In Ghana, West Africa, partners Nora Exploration (ME) and Consolidated Manus Industries (VSE) report that indicator minerals and diamonds of up to 0.25 carats have been recovered from alluvial gravels on their Kade concession. Up to half of the diamonds recovered are of gem quality, and two generations of gold nuggets have also been found.

Following the excavation of 37 test pits, proven and probable reserves are estimated at 557,577 cubic metres at an average grade of 0.29 grams gold and 0.62 carats per cubic metre.

Nora and Manus each hold a 45% interest in the 41.5-sq.-km concession, with the Ghanaian government holding the balance.

* Four of 11 exploration samples from United Reef’s (TSE) Bamingui-Bangoran property in the Central African Republic have been processed. Three of the samples yielded a total of seven stones, with a combined weight of 3.16 carats. The samples were collected in areas that were previously untested in the 1993 sampling program.

Flakes of coarse gold have also been recovered from several of the sampling sites and from random surface samples.

Exploration sampling and processing are continuing.