BHP farms into another junior....YBU.U(Buffalo Diamonds)...it appears to be a vancouver junior run by one of the old Eskay Creek cronies, Chet Idziszek. It's early stage, and located in Alberta, but some initial good chemistry and a macro from tills and beach sands that BHP must like. I would think that an airborne geophysical program by BHP with follow up ground geophysics and sampling will be next.
February 22, 2002
BHP BILLITON OPTIONS CALLING LAKE AND VARLAAM
DIAMOND PROPERTIES
Buffalo Diamonds Ltd. (“Buffalo”) and New Claymore Resources Inc. (“New Claymore”) are
pleased to report that they have granted to BHP Billiton Diamonds Inc. (“BHP Billiton”) an option
to acquire up to a 70% interest in their Calling Lake and Varlaam diamond properties covering
618,000 acres in north central Alberta.
In order to acquire a 51% interest in the properties, BHP Billiton must spend a minimum of
$600,000 on exploration of the properties by August 31, 2003. BHP Billiton can earn a further 9%
interest (60% in the aggregate) by incurring all expenditures required to complete a bulk sampling
program of not less than 50 tonnes on any kimberlite body or other diamond bearing host rock type
located within the properties by August 31, 2006. BHP Billiton can earn a further 10% interest
(70% in the aggregate) by completing a Feasibility Study on any kimberlite body or other diamond
bearing host rock type located within the properties by August 31, 2011.
Buffalo and New Claymore have also agreed that their interests in both properties on exercise or
termination of the option will be 65% Buffalo, 35% New Claymore.
To date, 66 G10 pyrope garnets, a single macro diamond and a complete suite of other indicator
minerals have been recovered from till, river and beach sediment samples collected on the Calling
Lake and Varlaam properties. The quantity and chemistry of the kimberlite and diamond indicator
minerals recovered from the properties suggest a proximal diamond bearing kimberlite source. The
highest concentration of indicator minerals, including 60 of the G10 garnets were recovered from
beach sands on the west and southeast shores of Calling Lake. These results prompted Buffalo to
initiate a drill program that tested 10 significant magnetic targets in and adjacent to Calling Lake in
the spring of 2000, the results of which are pending.
The Calling Lake and Varlaam properties are located approximately 200 kilometers southeast of the
Buffalo Head Hills Project of Ashton Mining of Canada (“Ashton”), EnCana Corp. and Pure Gold
-2-
Minerals. Ashton and its joint venture partners have identified at least 36 kimberlites on the Buffalo
Head Hills Project including the K252 kimberlite pipe. The K252 kimberlite pipe is reported to have
returned an average diamond grade of 55.0 carats per hundred tonnes from a 22.8 tonne mini-bulk
sample. Ashton has reported that a drill program is underway on the Buffalo Head Hills project to
drill test geophysical anomalies similar to K252 and that an additional six delineation drill holes are
also planned for the K252 pipe.
On behalf of the Board of Directors of
BUFFALO DIAMONDS LTD.
On behalf of the Board of Directors of
NEW CLAYMORE RESOURCES INC.
“Douglas Turnbull” “Anthony Rich”
Douglas Turnbull
Director
Anthony Rich, P.Geol.
President |
