Snap Lake Update
Snap Lake Diamond Project update
- Value Recognition Program - New Drill Results
- Advanced Exploration Program
- Microdiamond Results
- Conference Call scheduled for 1:00 p.m. EDT today.
VANCOUVER, July 31 /CNW/ - Winspear Diamonds Inc. (WSP-TSE) today
released further results of its Value Recognition Program that was initiated
in response to De Beers' hostile take-over bid. The Company also announced
that as part of this Program, it has commissioned MRDI Canada, a Division of
AGRA Simons Ltd. (MRDI) to update the Resource Study issued in September 1999.
Winspear also released the results of microdiamond analyses that were underway
at the time De Beers made the take-over bid for the Company.
The Value Recognition Program, designed to demonstrate to shareholders
and third parties the value and potential of the Snap Lake Diamond Project,
NWT, comprises the following:
- A step-out and in-fill drill program to demonstrate additional property
potential. Six drills are currently working at the Snap Lake Diamond
Project.
- An updated Resource Study that Winspear expects to be completed prior
to expiry of the De Beers bid.
- An updated Scoping Study to outline the economic potential of the Snap
Lake Diamond Project, results of which were announced July 11, 2000.
In reviewing these results, Mr. Turner, President and CEO, said,
"Winspear's Board of Directors is very pleased with these results which
reinforce its view that the De Beers offer significantly undervalues Winspear.
The Board and its advisors continue to work to ensure that shareholders and
third parties are aware of the value of the Snap Lake diamond deposit which,
to date, remains open down-dip to the north, east, and southeast. The Board of
Directors continues to recommend that shareholders reject the De Beers offer
and not tender their common shares."
Value Recognition Program - New Drill Results:
As part of the Value Recognition Program, Winspear has committed to a
drill program to provide both in-fill and step-out holes at the Snap Lake
Diamond Project. In response to De Beers' hostile bid for Winspear, the
Company immediately mobilized drills and drilling crews to the Snap Lake
Diamond Project. By July 15, 2000, five surface drills were operating on the
property; a sixth drill began operating on July 27.
Winspear has now received results on thickness of kimberlite
intersections from a total of three step-out holes and three in-fill holes at
the Snap Lake Diamond Project. Results of this drilling will be used by MRDI
in preparation of the updated Resource Study as described below. The attached
map shows the approximate location of both completed and currently proposed
step-out holes while the following table summarizes results to date of
kimberlite intersections obtained under this program. These results emphasize
the continued down-dip predictability of the NW dyke to limits of existing
drilling. At this stage, the NW dyke remains open to the north, east, and
southeast. All holes completed to date have intersected kimberlite at expected
depths and thickness.
<<
Snap Lake Value Recognition Program
Completed Drill Holes (all vertical)
-------------------------------------------------------------------------
Quadrant Kimberlite Intersection Significance
(Metres)
-------------------------------------------------------------------------
Q17 3.37 Step-out hole 800m from previous
(incl. 0.63m internal waste) drilling.
-------------------------------------------------------------------------
P18 1.33 Step-out hole 550m from previous
1.17 drilling with two intersections
126m apart.
-------------------------------------------------------------------------
M19 1.32 Step-out hole.
-------------------------------------------------------------------------
N15 4.10 In-fill hole to upgrade
(incl. 0.37m internal waste) classification of the mineral
resource.
-------------------------------------------------------------------------
N15 2.09 In-fill hole to upgrade
classification of the mineral
resource.
-------------------------------------------------------------------------
M15 3.61 In-fill hole to upgrade
classification of the mineral
resource.
-------------------------------------------------------------------------
>>
The NW dyke has now been established over a distance of 3.2 km north-
south, 3.1 km east-west, and to a maximum depth of approximately 1000 metres.
Three additional step-out holes are currently being drilled to more fully
explore for mineable tonnage beyond the "Area B" limits of the July 2000
Scoping Study (see attached map). In addition, three drills will continue
working on in-fill holes, mainly within Quadrants M15 and N15, to determine
the potential for upgrading "inferred" to "indicated" resources contiguous
with Area "A" (see attached map).
Value Recognition Program - Updated Resource Study:
MRDI has been commissioned to update its September 1999 Resource Study.
This August 2000 Resource Study will incorporate all drill results from the
Snap Lake Diamond Project including those described above to provide a new
measure of "indicated" and "inferred" resources for the Snap Lake Diamond
Project. Winspear anticipates that this update will be available prior to
expiry of the De Beers offer.
Advanced Exploration Program:
The purpose of the Advanced Exploration Program is to test underground
mining conditions and to obtain and process three 2000-tonne bulk samples of
kimberlite from underground. This Program is progressing on budget and on
schedule. At this pace, the Company expects to complete the decline of 1015
metres and to intersect kimberlite on or about August 27, 2000.
As of July 30, the decline had been driven 831 metres from the portal and
was 131 metres below the portal of the decline and 105 metres below the
surface of Snap Lake. Processing of the first bulk sample is expected to begin
in September. Sampling and processing of all three bulk samples is expected to
be completed by November. Although the decline is not yet under Snap Lake, it
is no longer in permafrost. Ground conditions continue to be very good and
there is no indication of ground water. A cover hole (a diamond drill hole
drilled from underground above and along the route of the decline) completed
July 27, 2000 to test for ground water under the lake encountered only minimal
ground water.
Construction of the bulk sample processing plant has been completed and
commissioning is scheduled to begin this week. The plant will then process
kimberlite stockpiled from the 1999 bulk sample program.
Microdiamond Analyses:
Microdiamond analyses of kimberlite recovered from drill core obtained
since June 1999 from the NW dyke and the SE Arm have been completed. These
will be used by MRDI in preparation of its updated Resource Study. These
analyses were underway at the time De Beers announced its take-over bid and
were accelerated at that time. Lakefield Research Ltd. of Lakefield, Ontario,
has undertaken all microdiamond analyses for the Project.
The new microdiamond results, which are incorporated into the complete
set of Snap Lake results presented on the attached map, re-affirm the
consistency of microdiamond distribution throughout the NW dyke. They also
confirm the increasing abundance of microdiamonds to the north and east within
the NW dyke.
In its September 1999 Resource Study of the Snap Lake Diamond Project,
MRDI estimated a grade of 1.97 carats per tonne for the mineral resource of
21.3 million tones that had been calculated for the NW dyke at that time.
Grade estimations were derived utilizing microdiamond data from analyses of
all kimberlite samples collected to June, 1999 plus diamond data obtained from
processing the 6,000tonne bulk sample taken in 1999. This grade estimate
assumed a strict bottom cutoff of 1.18 mm and identical liberation and
recovery characteristics to those of the pilot plant through which the 6,000-
tonne bulk sample was processed.
The relationship between microdiamond abundance and grade for the NW dyke
is established on the basis of data obtained from Pits 3 and 4. Microdiamond
abundance data from these pits are shown on the accompanying map. The
recovered grade for the 6,000-tonne bulk sample taken from these pits is 1.78
carats per tonne. These results indicate increasing grades down-dip to the
north and east from Pits 3 and 4.
Kimberlitic dykes identified in the SE Arm of Snap Lake show close
similarities to the NW dyke and are regarded by the Company to be part of the
Snap Lake kimberlitic system. The Company believes this similarity is
emphasized by microdiamond abundance data from the SE Arm of Snap Lake that is
equal to or greater than the microdiamond content of the NW dyke.
The Board of Directors of Winspear have approved a Notice of Change of
Information to the Director's Circular relating to this press release as well
as to other matters. The Notice of Change of Information includes additional
detail regarding the July 2000 Scoping Study including the full Executive
Summary thereof.
Communications:
Shareholders and other interested parties are encouraged to participate
in a conference call later today, the purpose of which will be to elaborate on
this release. Interested parties can enter the call, set to commence at
1:00 p.m. Eastern Daylight Time (EDT) July 31, 2000, at any time after
12:45 p.m. EDT.
Participants outside North America: 1-416-695-9753
Participants inside North America: 1-877-461-2814
As demand may exceed available lines, the call will be available for
replay for seven days following the original transmission by dialing in North
America 1-888-509-0082. Outside North America, please call 1-416-695-9768.
As part of its ongoing efforts to inform shareholders and other
interested parties of Winspear's activities relating to the De Beers hostile
takeover bid, the Company will be posting information on its web site at
www.winspear.com. |
