Hello Frank
Picked this off the wire this A.M.:
Metalex and Arctic Star commission a 200 tonne bulk sample from the T1 diamondiferous pipe in Northern Ontario 18 Jan 2006 09:16 ET
KELOWNA, BC, Jan. 18 /CNW/ - Metalex Ventures Ltd (MTX - TSX Venture
Exchange)("Metalex" or the "Company").
Metalex and Arctic Star Diamond Corp (ADD - TSX Venture Exchange)("Arctic
Star") have commissioned the collection and processing of a 200-tonne bulk
sample from the T1 diamondiferous pipe at the Kyle Project in Northern
Ontario. The purpose of the bulk sample is to determine the likely diamond
grade and indicative diamond values of T1.
The high proportion (65%) of pristine white micro and macrodiamonds
recovered in T1 from a 1573 kg minibulk sample (see press release dated
November 3, 2005) appear similar in colour to a 243.52 carat parcel of
commercial size diamonds recovered from the Victor kimberlite, 80 km east of
T1 and exhibited at the Prospectors and Developers Association of Canada by De
Beers Canada in March, 2005. If the quality of the T1 diamonds obtained so far
are representative of those that would be obtained in a production situation,
then the value of the T1 diamonds might be similar to the Victor diamonds at
US$300 - $400/ct. Currently the Victor diamonds are thought to have the
highest average price ("run of mine") for kimberlite diamonds in the world.
In addition to a favourable size distribution of the diamonds as well as
favourable numbers of pristine diamonds recovered from T1, the chemical
compositions of diamond indicator minerals, including diamond stability field
chromites, olivines, G10 garnets and chrome diopsides, are similar to the
chemical compositions of the same minerals found in commercial kimberlites.
The G10 garnets include seven G10-9's and a G10-10. These are the very best of
the G10 garnets and, according to geologist Charles Fipke, occur in
peridotitic kimberlite pipes containing high diamond grades. These are
favourable factors and lead the directors of Metalex and Arctic Star to
commission the 200 tonne sample, which is the minimum size necessary to
determine the grade of production diamonds and their indicative value. Should
potentially commercial diamond grades and values be found from the bulk sample
then additional delineation drilling and further sampling will be carried out
as part of a staged evaluation program which may lead to mine feasibility
studies.
The bulk sample will be collected using a large diameter (8.75 inches)
heliportable reverse - circulation drill during March and April 2006, weather
permitting. Between 12 and 20 holes are planned to sample the different
kimberlite phases. The bulk sample will be processed using a heavy medium -
sortex recovery system remote from the drill site. First stage delineation
drilling is currently in progress on T1 and the results of this work will be
used to plan the location of the bulk sample holes. Drilling of priority
aeromagnetic targets nearby is also in progress.
The T1 project is a joint venture between Metalex (91.5%)(project
operator) and Arctic Star Diamond Corp (8.5%).
Metalex's exploration projects are managed by Kel-Ex Development Ltd., a
company owned by Dr. Charles Fipke, the Chairman of Metalex. Dr. Peter
Gregory, the President of Metalex is a consultant to Kel-Ex. The arrangement
with Kel-Ex provides Metalex with access to the advanced proprietary databases
and interpretational techniques of Dr. Charles Fipke, an internationally
recognized diamond geologist. In return, Kel-Ex receives a 10% administration
fee and, in the case of the Canadian projects, a 10% interest in the project
carried to production. (Kel-Ex will repay its proportionate share of the costs
of mine development out of its share of mine profits). Dr. Fipke also owns the
CF Mineral Research laboratory where samples collected in the exploration
programs are analyzed. Dr. Peter Gregory, a Qualified Person, has verified
that the work carried out by Kel-Ex, manager and operator of the Company's
projects, is being carried out in a professional and diligent manner and that
the appropriate quality controls are in place. Dr. Gregory has also inspected
the CF Mineral Research laboratory and is satisfied that the work performed
there meets or exceeds international best practices; that the work is
performed on an arms length basis and in accordance with standard commercial
arms length terms; and that the results provided by CF Mineral Research are
accurate and reliable. On this basis the Company has not sought any
independent analyses. However, should significant diamond grades be discovered
the Company may seek independent verification of such results. Dr. Gregory has
prepared this press release.
Peter Gregory
President
It would appear that MTX likes what they recovered in 2005. I remain very optimistic about the probability that MTX (Chuck) will discover significant deposits on a number of MTX/CD plays in 2006 however, the market will certainly reward discovery of another 1st world economic diamond deposit like Victor. The T1 is not a tiny pipe and should MTX discover a few sisters this year, which appears to be a reasonable possibility, this could prove to be a very exciting ride especially considering the property's proximity to infrastructure, labour, etc.
Regards
Vaughn
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