Option agreement on diamond and gold concessions in Venezuela
Coleville Resources Ltd CLL
Shares issued 16,976,653 May 1 close $0.29
Mon 4 May 98 News Release
See RJK Explorations Ltd (RJX.A) News Release
Mr. R.J. Kasner reports
RJK has entered into an option arrangement with Coleville Resources to
explore the hard rock diamond and gold potential of the Pernon concession
in Southeastern Venezuela. RJK may earn a 70 per cent interest in the
property by making a cash payment of $30,000 (U.S.), which has been paid,
and by carrying out work expenditures of $700,000 (Canadian) by May 1,
2000. Upon completion of the above, RJK will have earned an undivided 70
per cent interest in the property. Normal pro-rata dilution will apply
after the formation of a joint venture and should either party fail to
participate and dilutes to a 5 per cent interest, this interest shall be
converted to a 10 per cent net profits interest.
The property is a producing placer and gold property underlain by basal
conglomerates of the Uairen formation of the Protozoic Roraima group where
there are widespread kimberlite indicator minerals, including pyrope
garnets, chrome diopside, Ti bearing minerals such as rutile, limenite and
most importantly, diamonds. It is approximately 40km northwest of the Town
of Santa Elena, Gran Sabana County of the state of Bolivar, Venezuela and
consists of six exploration licences with four adjacent exploration
concessions under application for a total area of approximately 6,780
hectares. The property may be accessed by road from the Town of Santa
Elena. A small airstrip is also on the property.
The following is an excerpt from a report prepared for RJK by its
consultant detailing the integration of multiple exploration data sets,
including magnetic, remote sensing (radar and landsat), geophysical data
sets and property geological data.
The Pernon property is at the SE edge of the Proterozoic Roraima basin at
the intersection of four Precambrian basement faults. Exploration data sets
include satellite borne landsat TM and ERS-1 radar, and airborne magnetic
data sets at 1:25,000 scale. Viewed together with gold and diamond mineral
occurrence maps, the data sets suggest that the property is underlain by a
large intrusive body 5km in diameter and centred south of the right angle
bend in the Cuquenon River. The Pernon intrusion has an almost perfect
circular drainage signature, and it is bounded to the north and south by
large E-W magnetic faults and topographic lows. Magnetic data reveal broad
zoning patterns, which conform with drainage and vegetation patterns. More
important, a central circular magnetic body, 1,800 metres in diameter, is
in the centre of the intrusion. It is composed of a cluster of smaller
pipe-like magnetic anomalies, both highs and lows, suggesting the existence
of a vertical cylinder, and possible kimberlitoid diatreme body. The
diatreme forms a hilltop and it has a distinct thermal, vegetation and
drainage signature as shown on excerpt TM ratio images.
Further details about the Pernon intrusion interpreted from image data, are
the clustering and staking of circular-curvilinear and rectangular drainage
structures around the inferred central diatreme suggesting a composite
intrusive with multiple different lithologic phases and hydrothermally
altered and quartz veined basement regolith. The surface morphology
suggests a buried pipe structure inviting exploration follow-up. Of
particular interest is a square shaped lagoon, 1 x 1 kilometre in area near
the Cuquenon River. While it is underlain by Roraima conglomerates, recent
exposures have documented quartz veining and graphite in hydrothermally
altered regolith. The surface morphology suggests a buried pipe structure
inviting exploration follow-up.
The entire Pernon property is considered to be a structural window and
intrusive centre at a large Precambrian basement fault intersection. While
alluvial, eluvial and in situ diamond and gold occurrences are associated
with/or derived from basal conglomerates in the Uairen formation in the
Roraima group, the magnetics and merged radar and landsat data strongly
point to intrusive sources within the property. The hardrock diamond and
gold mineral potential is untested and the idea was brought about by data
integration and stacking of multiple exploration data sets. The property
has considerable hard rock exploration potential because of its numerous
diamond and gold occurrences and tectonic setting.
RJK envisions a detailed and comprehensive field exploration follow-up,
including:
1) Drainage and airphoto analysis using digital terrain elevation data
obtained from the airborne survey with follow-up heavy minerals and
auger sampling at depositional trap sites;
2) Analysis and processing of magnetic data with follow-up airborne
EM/radiometric surveying;
3 Systematic prospecting, geologic mapping and sampling program to
follow up drainage anomalies to source intrusive mineralized centres
and locate drill targets.
Currently, small scale mining activity is being conducted on the
concession. From past production records in excess of 70 per cent of the
diamonds recovered were of gem quality with the largest being 7.8 carats.
Gold is also being recovered.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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