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Aber Resources Ltd -
Dia Met et al find Greenland disappointing
Aber Resources Ltd
ABZ
Shares issued 45,802,883
1999-04-15 close $9.65
Thursday Apr 15 1999
See Dia Met Minerals Ltd (DMM.B) Street Wire
GREENLAND "ICE" STILL ELUDES EXPLORERS
by Will Purcell
Canadian diamond hunters continue to probe the southwest coast of Greenland in
the elusive search for a significant diamond find. A Geological Society of
Greenland report indicated that stream sediment samples taken by Renzy Mines in
1973 contained 10 diamonds. The largest of these was a reported 0.09 carats. At
the time it was suspected that the diamonds originated from the South African
processing plant itself as a result of contamination in the recovery process. This
belief was apparently in turn based on the belief that it was unlikely the diamonds
originated in Greenland as none had been found there before. More than 20 years
later, a major exploration campaign began in the general area where these
diamonds may have originated.
The most prominent participants in the area are Dia Met Minerals Ltd., and Aber
Resources Ltd., both of whom uncovered major diamond finds in the Lac de Gras
region of the Northwest Territories. Platinova A/S, Citation Resources Inc.,
Lexam Explorations Inc., and Fjordland Minerals Ltd. are juniors who have
played a significant role in the area. Some encouraging signs have been uncovered,
but to date the results are largely disappointing.
Dia Met released results last week on its 49 per cent owned joint venture
exploration project with Monopros Ltd. The joint venture submitted six samples
of kimberlite for diamond recovery by acid dissolution. These samples contained a
total of 558 kilograms of kimberlite from which a total of 498 diamonds were
recovered. Of these, only five were classified as macro diamonds, having one
dimension greater than 0.5 millimetres. The vast majority of the diamonds, and all
of the macros, came from just one of the samples. This 140 kilogram sample
contained 479 diamonds which were mostly graphite coated fragments. This
coating suggests that the fragmentation occurred as a result of natural causes and
not during the recovery process. Taken as a whole, these samples would not be
considered highly diamondiferous.
The project covers nearly 600 square kilometres and is operated by Monopros.
Citation Resources Inc. has the right to receive from Dia Met 20 percent of any
production from the property by reimbursing Dia Met for 20 per cent of all future
costs incurred by the joint venture. To date approximately $4-million has been
spent on exploration of this claim block.
Earlier this year, Dia Met announced results from its other main Greenland
property. Dia Met has a 31 per cent interest in, and is the operator of the
property. The other joint venture partners are Cantex Mine Development Corp.
with a 20 per cent interest, and Citation holds the remaining 49 per cent share.
This block of claims encompassed over 12,000 square kilometres initially, but it
has recently been reduced to roughly half that size.
Dia Met announced last fall that heavy mineral processing of till samples collected
yielded some encouraging results. Fifteen samples exhibited "outstanding quality
diamond indicator minerals". A total of 34 other samples showed "intermediate
quality" indicator minerals. The best of these minerals compared favourably to
those recovered at Lac de Gras, the company said.
Rock samples from four separate sites on this property were sent for analysis.
Kimberlite from the first sample yielded 11 micro diamonds from 238 kilograms
taken from a rock outcrop portion of a one to two metre sill. Seven of the
diamonds were described as clear and colourless. Large quantities of indicator
minerals were also recovered along with the diamonds. While the presence of
diamonds is encouraging, the numbers recovered must be considered very low.
The three additional samples are currently being analyzed and results are pending.
The joint venture has a 1999 program which includes conducting ground
geophysical surveys over the most promising targets, and core drilling of the most
promising targets.
Ground prospecting in 1998 identified a total of 22 dykes, at least 26 sills, and
one very small pipe. The pipe had a surface area of only 70 square metres. Most
small economic pipes have a surface area in excess of 10,000 square metres.
Samples from these occurrences are being tested to determine if they are indeed
kimberlite. Total expenditures to date on this property are in excess of $4-million.
In 1996, Lexam Explorations entered into an agreement with Platinova involving
two blocks of ground comprising 3,390 square kilometres. To earn a 50 per cent
interest in the property, Lexam was required to spend $600,000 in exploration
work by Dec. 31, 1997. In addition, by Dec. 31, 2000, the company must either
complete 10,000 metres of drilling or proceed with the extraction of a 1,000-ton
bulk sample from the property.
Preliminary exploration was conducted in 1996 and 1997. In September 1997,
Lexam announced the recovery of two micro diamonds in a 42 kilogram sample
of kimberlite recovered from a dyke discovered on the property. The dyke
reportedly varied in width from two to four metres over a length of several
kilometres. A 792 kilogram sample was gathered for analysis and yielded a total
of 41 diamonds. Of these, 16 were classified as macro diamonds. Yet again, the
presence of diamonds has been established, although only in small quantity.
During the 1998 program, a number of targets were drilled, without success. A
total of 24 anomalies were identified as potential kimberlite targets and detailed till
sampling was collected around those targets. Drilling of some of these targets may
be undertaken this year. In December of 1998, Lexam announced it was
reassessing its land holdings in Greenland and anticipated those holdings would be
reduced in order to focus on the areas of merit and limit property holding costs.
As a result, Lexam's further participation in Greenland should now be considered
uncertain.
Aber Resources entered into an agreement with Platinova in 1996 to fund
exploration on three blocks of Platinova claims comprising 12,000 square
kilometres. In order to earn a 50 per cent interest, Aber must complete 10,000
metres of drilling, or complete a 1,000 tonne bulk sample. Preliminary exploration
began in 1996 with several hundred surface till and stream samples collected from
over 70 potential targets. An extensive magnetic and electromagnetic survey was
conducted on one of the claim blocks as well. The following year, approximately
1,500 metres of follow up drilling was conducted and the surveys were extended
to the remaining blocks. The past year saw work limited to collecting several
hundred more till samples and assessing samples of kimberlite dykes and boulders
for diamond potential. A drill program is being considered for this year.
To date, no kimberlite pipes have been found on the property, although a number
of dykes have apparently been located. Indicator minerals found to date have
been described as encouraging. To date, Aber has spent in excess of $4-million
on exploration of the three blocks.
In 1996, Ellios Resources entered into a similar agreement with Platinova. The
company was subsequently renamed Fjordland Minerals Ltd. Fjordland at one
point held an interest in over 16,000 square kilometres of claims in the southwest
of Greenland, most of which was under option from Platinova. An exploration
program was undertaken in a similar fashion. Stream sediment and till samples
were collected and analyzed, and a geophysical survey was completed. Once
again, indicator minerals were found, but little else. In early 1998, Fjordland
reduced its land holdings in the area by 60 per cent, to 7,000 square kilometres.
The company hoped to concentrate exploration on only the most prospective
areas. In early 1999 the company made an even greater reduction in its holdings
and now retains only 300 square kilometres in a single area. Fjordland has spent
approximately $3-million in exploring their Greenland claims over the past three
years.
With total exploration expenditures well in excess of $10-million the participants
have little to show for their efforts other than some fine indicator minerals and a
few smaller macro diamonds. The major participants are expected to continue
their efforts in the region for some time yet, however. It should never be said that
finding a diamond mine is easy. |
