The following article is published in “Investor’s Digest”….
Diamonds can be a consultant’s best friend, too
By George Werniuk.
A geophysical consultant, whom I know, said recently that he would have little to do if it weren’t for
platinum group metals and diamonds.
Such is the state of mineral exploration in Canada today. The demand for PGMs, the success of
the Ekali diamond mine, and the go-ahead for constructing Diavik (Canada’s next diamond
producer) have kept some of Canada’s exploration experts from leaving the country or finding other
careers.
One of the more successful Canadian junior diamond explorers is Twin Mining Corp. (TWG – TSE
416-777-0013 www.twinmining.com). In recognition of its success on the Torngat property, it
received the Prospector of the Year award from the Quebec Association of Prospectors in
September, 2000.
The 100 percent owned, 507 sq.km Torngat property is on the east coast of Ungava Bay in northern
Quebec. The property is host to a series of kimerlite dykes that are exposed on the surface and
have a 365-metre vertical exposure along the shore of the Alluvian Fjord.
Following airborne geophysical surveys in early 2000, the Phase II summer exploration program
saw the mapping of over 37 km of kimberlite dykes averaging in two to four meters in width. Three
“blowouts” or enlargements of the dykes were also found.
Last year’s summer program included the collection of 50kg samples every 400 metres along the
length of the dykes. After processing, the results were encouraging enough to warrant further work.
A mini-bulk sample was collected consisting of three samples from within an excavation that is 65
metres long, and up to seven metres deep, on the Torngat one dyke.
There were 1,548 diamonds exceeding one mm in length from the three samples, with three
diamonds measuring between four and five mm. The largest diamonds weighed 0.685, 0.566,
0.279, 0.271, and 0.199 carats.
Successful sampling
A series of 50 kg grab samples were taken on a 4.5 km long section of dyke, and 2.4 kg of each
sample was processed. The best result was 0.21 carats from one of the 24 kg samples.
The program was successful in confirming the presence of commercial size diamonds, assessing
the relationship between the micro-diamond results and mini-bulk sample macro-diamond
recoveries, and evaluating the macro-diamond distribution along the Torngat dyke system.
A well-known diamond trading house in Belgium opined that a parcel of eight diamonds recovered
from the mini-bulk sample were of high quality, high-purity, and of a very white, good crystalline
shape.
With these results in hand, Twin Mining will be focusing the 2001 exploration program on the 4.5
km long Torngat North area.
Furthermore, ongoing exploration will search for other sections of the dyke system for higher
diamond values.
The diamond-drilling program will aim to establish the orientation of the dykes at depth. If all goes
well and results warrant, a 2,000 to 5,000-tonne bulk sample will be taken.
Twin Mining’s other diamond prospect is the 100 percent owned Jackson Inlet property on Baffin
Island, approximately 100 km west of Nanisivlk zinc mine.
The property was acquired in early 2000 and now covers 572.5 sq km. In late May, 2000, the
Jackson Inlet pipes were first examined and sampled by Twin Mining’s director of diamond mining.
A 94.52kg aggregate of the samples was processed and yielded 42 diamonds, three of which were
greater than 0.5mm in the longest dimension.
Based on these results, a program of trenching was carried out in August, and approximately 1.6
tonnes of samples were submitted for processing.
From the five pipes sampled, 681 diamonds were recovered, including 29 measuring more than one
mm in at least one dimension. The largest diamonds were from pipes two and three and weighed
0.768, 0.176, and 0.139 carats. Most of the diamonds were of gem quality. There are also 11 pipes
inferred from exploration to date.
2001 explorations
Work for the 2001 exploration season is underway with an airborne magnetometer and
electromagnetic survey. Exploration will continue in the vicinity of the original discovery pipes and
this will include a 15-20-tonne mini-bulk sample. Drilling is also planned to determine to tonnage
potential within a 15-hectare area.
The quick success of Twin Mining’s exploration program can be partially attributed to the location
of the two properties.
The early discovery of kimberlite pipes and dykes saved considerable time in the exploration
process. In other areas of Canada, it can take many years just to find a kimberlite. Twin Mining is
fortunate to have these ones exposed on surface.
Even better, both properties are diamondiferous. Now it is a matter of evaluating the properties
further and taking larger samples to see if the prospects can stand up to economic scrutiny.
Overseeing the direction of the company is a very experienced board of directors including Allied
Powis, former chairman and CEO of Noranda, and Gerard Munera , former president and CEO of
Minorco USA.
The company is well financed with working capital of just under $7 million at the end of 2000, so a
lack of funds will not be a factor.
Twin Mining shares have been in a long, slow downward trend. A year ago they were trading at
about $0.84, but recently have been in the $0.31 to $0.44 range.
Because of the nature of the exploration work and the long process time, the results that count will
not be known for a couple of months.
The fact that the previous results were encouraging, and that work has already commenced for this
year, should make this a good time to take a position in what appears to be an undervalued stock
that might in a few years turn into another significant Canadian diamond producer.
stockhouse.ca.
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Happy investing,
andras |
