More diamonds in the North.....
De Beers eyes third Canadian diamond mine
By PETER KENNEDY
Vancouver Bureau The Financial Post
New results from a Northwest Territories diamond find show De Beers Consolidated Mines Ltd. could soon enter the race
to develop Canada's third diamond mine, company executives said yesterday.
A senior company official said he is encouraged by results from a remote property held under option from Vancouver-listed
juniors Mountain Province Mining Inc. and Camphor Ventures Inc.
While De Beers dominates the global diamond market, it has been shut out of two Northwest Territories diamond mines
being developed by Dia Met Minerals Ltd. and Aber Resources Ltd.
But results released yesterday from Mountain Province's nearby AK property are showing signs the project could prove
economic.
Under an agreement with Mountain Province and Camphor, De Beers can earn a 60% interest in the AK project by
developing a viable diamond mine.
After targeting AK, De Beers' Canadian exploration arm, Monopros Ltd., has found four of the rare kimberlite pipes that
contain diamonds.
Monopros said yesterday a 63-tonne sample extracted from kimberlite known as the Hearne pipe returned an average grade
of 3.28 carats a tonne.
That compares with a grade of 1.09 carats a tonne at Dia Met's Ekati mine, which is being readied for startup in October.
"We are very encouraged by these results,'' said Roger Clement, chief executive with Monopros in Toronto.
The company also said a 60-tonne sample from another kimberlite deposit, known as the Tesla pipe, returned a much lower
grade of 0.43 carats.
Diamonds from Hearne, Tesla and two other AK pipes will soon be shipped to Kimberley, South Africa, for valuing.
Clement said Monopros will try to increase its confidence level in the find by extracting about 500 tonnes of rock from each
pipe this winter.
Depending on the outcome of further analysis, Monopros may elect to study the feasibility of building a new diamond mine.
However, investors did not seem to share Clement's enthusiasm.
After closing at $1.30 on June 9, Camphor shares (CFV/VSE) did not trade yesterday. Mountain Province (MPV/VSE) fell
18c to $4.20. Glenmore Highlands Inc. (GMH/ASE), which owns 39% of Mountain Province, also fell 9c to $1.09.
"People are just bored,'' said David James, a diamond analyst with Canaccord Capital Corp. in Winnipeg. Analysts have said
diamond explorers have not been able to excite the market with new discoveries.
He said investors were focused yesterday on another Arctic diamond project on remote Victoria Island De Beers is
exploring with Major General Resources Ltd. and Ascot Resources Ltd.
Yesterday, Ascot (AOT/VSE) soared 27c to 93c in heavy trading after striking a deal with British investment firm T. Hoare
& Co. to issue one million special warrants at 65c each
Major General (MGJ/VSE) rose 7c yesterday to close at 49c.
Hopefully this will create some interst in the FALC poperties.
Garry
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