Canaccord Spec Buy
Analysts' Breaking News Tuesday, May 27, 1997
Recommendations SPECULATIVE BUY Winspear Resources
(WSP : VSE : $1.79 :Issued 33.9M)
--anomaly 186 at Snap Lake confirmed as diamondiferous (David James)
News
On Friday, Winspear Resources (WSP : VSE : $1.79 : Issued
33.9M) announced that a second diamond drill hole on
Anomaly 186 on the east side of Snap Lake, NWT had
intersected 98.5 m of kimberlite breccia similar to that
of the 107 m intersection in the discovery hole reported
April 15. The Camsell Lake j.v. is a 57.3%/42.7%
Winspear/Aber project.
At this juncture, the orientation of the kimberlite is
puzzling but in view of the numerous dykes found to the
south and west, this body may represent a thick sill-like
emplacement: we certainly have more questions than
answers. The vertical discovery hole intersected
kimberlite breccia at a depth of 103 m and at 210 m went
into fresh granite to the bottom of the hole at 247 m.
The second hole, located 55 m to the west, intersected at
119.3 m and cut 98.5 m of kimberlite breccia and then
went into granite. Several pyrope garnets, and a 0.9 mm
diamond was recovered from this second intersection in
the kimberlite.
We believe that the 107 m section will probably be sent
to Lakefield Research this week with caustic fusion
results available next month. The j.v. will study the lab
results and those of the deep penetrating electromagnetic
survey are now being carried out to attempt to outline
the size of the target. It is possible that the
land-based portion of this body could be drilled during
the summer season and the drill will remain on-site.
Thirteen kimberlite dykes intersections taken from the
peninsula on the western shore of Snap Lake are believed
to have been sent to Lakefield for analysis. Three
diamonds were observed in the core in the field. The
mysteries of Snap Lake will take some time to be
unraveled, but the confirmation of a number of
diamondiferous kimberlites in such a localized area
obviously indicate the need for further work and
Winspear, with its strong working capital position, is
regarded as a SPECULATIVE BUY.
David James |
