THE DIAMOND PAGE — Royalstar completes bulk sampling of

Vancouver-listed Royalstar Resources has completed the first phase of a bulk-sampling program on its Sloan 2 diatreme in the State Line district, within Colorado’s Laramie Cty.

A 3,000-tonne bulk sample was mined from a 2.4-by-2.4-metre drift with crosscuts. This corresponds to a continuous sample length of 219 metres, which is less than half the cross-section of the Sloan 2 pipe. To date, about 2,710 tonnes of material have been processed, yielding 8,842 diamonds totaling 327.52 carats. Evaluation of deeper tunnel material continues to yield higher grades, averaging more than 16 carats per 100 tonnes, which are accompanied by increasing stone size.

The bulk sample is being processed at Dia Met Minerals’ (TSE) plant, which is on the Sloan property. Under an option agreement, Dia Met can earn a 51% interest in the project by reimbursing 76% of Royalstar’s costs incurred in the evaluation of the 3,000-tonne underground sample.

Several stones from the Sloan pipe have been submitted for evaluation and cutting, and a 5.51-carat rough stone is expected to yield at least a 2-carat clear-white diamond. Two additional stones — one clear white, the other a cognac color — were cut as clear brilliants of 10 points each. Following sizing and sorting, parcels of diamonds will be submitted for pricing. Based on the current results, Royalstar plans to begin the second phase of its evaluation of the Sloan diatremes shortly. An additional 210 metres of drifting and crosscutting will be carried out where previous surface sampling indicated high diamond grades.

Northwest Territories

Partners Lytton Minerals (TSE) and Dolly Varden Minerals (VSE) have completed the first phase of a sampling program on their 92,000-hectare property in the Lac de Gras area. The property borders Lytton’s ICE claims to the west and is immediately north of a property owned by Tanqueray Resources (ASE) and Mill City Gold Mining (VSE), both of which contain kimberlite pipes. During the program, 1,165 samples were collected and processed. Fifty-one samples were anomalous.

n Delineation drilling is under way on Aber Resources’ (TSE) A-154 pipe at Lac de Gras. Holes A154-2 and A154-3 both intersected kimberlite, but A154-1, situated between the two previous holes, did not. Additional drilling is planned to determine whether the two kimberlite intercepts represent separate pipes or if A154-1 intersected a large raft in a single kimberlite body. Drilling is being carried out from a barge on Lac de Gras and will continue as long as conditions permit. Drilling will resume on the ice after freeze-up, as will delineation drilling of Pipe A-21. Hole A21-2, drilled earlier this year, intersected what is believed to be a fine-grained ash tuff, peripheral to and above the pyroclastic kimberlite intersected in Hole A21-1 (the discovery hole). Although A21-2 contained few diamonds, Aber is encouraged by the fact that the pipe seems to have undergone little or no erosion.

Elsewhere on the property, airborne and ground geophysics, till sampling and diamond drilling have been completed for the season. Nine new kimberlites were discovered in 1994, five of which have undergone caustic fusion analysis and proved diamondiferous. Caustic fusion results from the remaining four pipes are pending.

Contingent on the results of delineation drilling on A-21 and A-154, both pipes will undergo mini bulk samples (30-50 tonnes each), through large-diameter core drilling.

n Geophysical surveys and till sampling have been completed on the 226,000-hectare Camsell Lake project, belonging to Aber Resources, Winspear Resources (VSE), Amarado Resources (VSE) and Consolidated Newgate Resources (VSE). The programs located and traced a diamond indicator mineral train to its apparent source near a small lake. The anomaly will be drilled shortly using angled holes from shore.

Quebec and Ontario

n Exploration has begun on Mountain Lake Resources’ (VSE) Indicator Lake diamond property, 275 km northeast of Chibougamou, Que.

The company plans to ground-truth six circular magnetic anomalies and carry out glacial till sampling for indicator minerals. Favorable kimberlite targets will then be drill-tested.

Mountain Lake is earning a 100% interest in the property from Inco (TSE). Under the deal, Mountain lake will issue to Inco 200,000 common shares, pay $125,000 in cash and spend at least $1 million on exploration over 12 months. Inco, which operates the project, retains a 5% gross proceeds royalty. The nickel giant can also acquire up to 2 million Mountain lake shares over two years at $1.19 each for the first million shares, and $1.37 for the second million.

n Exploration activities have resumed on KWG Resources’ (ME) Spider No. 1 and Spider No. 2 project areas.

At Spider No. 1, situated in the James Bay Lowlands, infill fixed-wing airborne magnetic surveys have been partially completed, resulting in the identification of eight targets in the Kyle Lake area. A low-level helicopter-borne magnetic survey has commenced over the targets in an effort to define drill sites. A large new target, in the vicinity of the MacFadyen No. 1 pipe, has been selected for immediate drilling.

At the Spider No. 2 project, in northwestern Quebec, drilling is under way. The program is testing the Troika occurrence, as well as several other airborne anomalies in the area.

n Under an agreement with Ditem Explorations, Fairstar Explorations (ME) will earn an interest in two claim blocks that adjoin a recent diamond discovery in Campeau Twp., near Temiscamingue, Que.

Diatem, a private company, recently discovered two macro and five microdiamonds in a large ultrabasic intrusive. The properties, known as the North and South blocks, comprise 3,600 hectares and contain aeromagnetic anomalies thought to represent kimberlites.

Under the deal, Fairstar can earn a 67% interest in the North block and 51% in the South by issuing Ditem 200,000 Fairstar shares and spending $1 million on each of the claim blocks over the next five years. In both cases, once the respective interests are earned by Fairstar, Ditem has an obligation to participate in the projects, or to be diluted on a pro rata basis. Overseas

n KWG Resources has formed a joint venture with Diamond Company, covering some 182,000 hectares in Brazil’s Minas Gerais and Goais states. Current washing activities on the Paranaiba River, which drains the project area, have yielded stones as large as 107 carats. In preparing areas for excavation, KWG has recovered several stones in the 1-to-11-carat range from sands that had been previously processed.

KWG can earn a half interest by paying $100,000 and issuing 100,000 shares to Diamond Company.