by Greg Klein | August 31, 2016
With a goal nearly 10 times the size of last year’s program, Dunnedin Ventures TSXV:DVI has a greatly expanded campaign of till sampling underway at its Kahuna project in Nunavut. The company hopes to process this year’s samples in time to guide a winter program on the 13,000-hectare property near Hudson Bay’s northwestern shore.
Using techniques pioneered by Dunnedin adviser Chuck Fipke, last year’s program “identified several new targets consistent with our known diamond-bearing kimberlites, including both dyke and pipe targets, and extensions to known diamond-bearing kimberlites,” said CEO Chris Taylor. “We anticipate that this summer’s 1,000-sample program will define additional targets and will allow us to accurately prioritize sites for upcoming drilling and bulk sampling.”
This field program should cost around $350,000, a relatively low budget due to the proximity of the hamlets of Rankin Inlet and Chesterfield Inlet.
The company also keeps busy with diamond recoveries from samples taken last year at the project’s Notch, PST and Kahuna kimberlites. Previous recoveries showed 96 commercial-sized diamonds from PST and another 36 from a Notch sample that was about 40% processed.
In addition Dunnedin has last year’s till samples under evaluation for gold potential.
Having held a series of community meetings recommended by the Nunavut Impact Review Board, Dunnedin plans to submit a revised project proposal to the NIRB. The company currently holds permits to work on federally controlled lands into 2017 and on Inuit-controlled lands into 2018.
Earlier this month Dunnedin appointed two strategic advisers, John Robins and Jim Paterson. Robins’ history with Kahuna dates to early last decade when he founded the company that held the original tenure. He brings to Dunnedin access to a proprietary database of historic results. Robins has been involved in a number of mergers and acquisitions including Goldcorp’s (TSX:G) takeover of Kaminak Gold, where he served as executive chairperson. He remains a director with other companies including Kivalliq Energy TSXV:KIV.
A former director of Kaminak, Paterson serves as CEO/director of Kivalliq, which holds the Angilak uranium deposit in the same region as Kahuna. During his 19 years of experience he’s acted as an executive or director of companies that raised over $175 million.
In early August Dunnedin offered a private placement of $1.3 million.
A January 2015 estimate showed inferred resources for the Kahuna and Notch kimberlites, 12 kilometres apart:
- Kahuna (+0.85 mm cutoff): 3.06 million tonnes averaging 1.04 carats per tonne for 3.19 million carats
- (+1.18 mm cutoff): 0.8 ct/t for 2.45 million carats
- Notch (+0.85 mm cutoff): 921,000 tonnes averaging 0.9 ct/t for 829,000 carats
- (+1.18 mm cutoff): 0.83 ct/t for 765,000 carats
- Total (+0.85 mm cutoff): 3.99 million tonnes averaging 1.01 ct/t for 4.02 million carats
- (+1.18 mm cutoff): 0.81 ct/t for 3.22 million carats
Both dykes remain open along strike and at depth.