Saturday 26th May 2018

Resource Clips


Posts tagged ‘Margaret Lake Diamonds Inc (DIA)’

Emulating success

May 2nd, 2018

Margaret Lake follows Kennady’s playbook in the quest for NWT diamonds

by Greg Klein

With fresh financing and a rig en route, Margaret Lake Diamonds TSXV:DIA has drilling about to begin on its namesake project in the Northwest Territories. As with any outfit in similar circumstances, the company’s optimism has been buoyed by the performance of an illustrious neighbour, in this case Kennady Diamonds. But more objective encouragement comes from the extensive geophysics that determined the targets for Margaret Lake’s maiden drill program. Additionally, the project operator will be the same group that helped deliver success to Kennady.

“Aurora Geosciences acts as project operator for us and also for Kennady,” points out Margaret Lake president/CEO Paul Brockington. “So we’re using the same people who have done all the Kennady work for the last six years.”

Margaret Lake follows Kennady’s playbook in the quest for NWT diamonds

Public tribute came to Yellowknife-based Aurora at Mines & Money London 2016, when Kennady co-won (with NexGen Energy TSX:NXE) the Exploration Company of the Year award. Noting that Aurora had designed and carried out all of the property’s exploration since 2012, Kennady president/CEO Rory Moore said, “Gary Vivian, [then president, now chairperson of Aurora], and Chris Hrkac, [Aurora’s] senior project manager for the Kennady North project, together with their team deserve the lion’s share of credit for the successes that Kennady has enjoyed to date. Their innovative, systematic and dedicated approach to a technically challenging project has resulted in new and unique discoveries, and earned Aurora the respect of its peers in the industry.”

A further testament to their work came just last month as Mountain Province Diamonds TSX:MPVD closed its acquisition of Kennady in an all-share deal valued at $176 million. An MOU between Mountain Province and De Beers considers incorporating Kennady North into the joint venture that comprises their Gahcho Kué mine.

The 23,199-hectare Margaret Lake property sits about nine kilometres north of Gahcho Kué and two kilometres northwest of Kennady North’s Kelvin and Faraday deposits. The Gahcho Kué winter road passes through Margaret Lake.

Aurora’s participation in the project will be nothing new. The company ran the geophysics that brought Margaret Lake to the drill-ready stage and Aurora will return very shortly, this time with a rig. Financing will begin with a $495,000 first tranche that Margaret Lake closed last month, out of a private placement offered up to $2.2 million.

Results from airborne and ground EM, along with airborne gravity/gradiometry pioneered by BHP Billiton NYSE:BHP, show six initial targets. Each features either a gravity low, a bedrock conductor or both, possibly indicating kimberlite. “Our first objective is to see if these targets represent kimberlite and, if they do, the objective then would be to get sufficient kimberlite to analyze it for microdiamonds and indicator minerals,” Brockington explains. “We’ll try to drill as much as we can before spring break-up.”

But while encouraged by his successful neighbour, he’s not basking in reflected glory. Margaret Lake is “a science project,” Brockington emphasizes. “We’re very much relying on these gravity/EM anomalies to help us deliver the goods.”

It’s very clear that when De Beers was there they did not recognize all the kimberlite. They were drilling mag targets but we went in and did ground gravity and EM, and we can see other targets that very strongly suggest more kimberlite.—Paul Brockington, president/CEO
of Margaret Lake Diamonds

Farther north, in the Lac de Gras field hosting the NWT’s Ekati and Diavik diamond mines, Margaret Lake also has work planned for Diagras, where the company holds a 60% stake in a JV with 40% partner Arctic Star Exploration TSXV:ADD. This property hosts 13 kimberlites found by De Beers in the 1990s. Brockington thinks there’s more to be found.

“It’s very clear that when De Beers was there they did not recognize all the kimberlite,” he says. “They were drilling mag targets but we went in and did ground gravity and EM, and we can see other targets that very strongly suggest more kimberlite. We’re definitely going to do more geophysics there in the next few weeks. We hope to get a ground program going to look at other areas that weren’t covered in last year’s program and I think we’ll have a number of drill targets.”

The winter road to Diavik passes through the northwest corner of the 18,699-hectare property.

Looking forward to a busy and prospective period, Brockington says, “We’ve got a lot coming up and, when you look at the activity in the diamond patch, I think we’ve got about as much as anyone.”

Exploration begins at Arctic Star’s Finnish diamond project

November 23rd, 2017

Update: On November 24 Arctic Star announced the closing of a final tranche of an oversubscribed private placement totalling $1.7 million.

by Greg Klein | November 23, 2017

Having closed the acquisition a week earlier, Arctic Star Exploration TSXV:ADD now has a crew busy at its Timantti diamond project in Finland. Located among favourable regional infrastructure in the Fennoscandian Shield, which hosts the major Russian diamond mines Lomonosov and Grib, the property has geophysics, sampling and drilling planned.

Exploration begins at Arctic Star’s Finnish diamond project

Arctic Star VP of exploration Buddy Doyle
gathers kimberlite float samples at Timantti.

Timantti’s White Wolf kimberlite has already revealed 169 microdiamonds, 111 from 52.7 metres of historically extracted core and another 58 from an 18.9-kilogram sample. The current program will include ground magnetic, gravity and electromagnetic surveys over the Black and White kimberlites to define their sizes and identify other drill-worthy anomalies.

Additionally, 20 backhoe till samples will be taken to search for diamond indicator minerals. Drilling will consist of about eight holes totalling 1,500 metres, with a 500-kilogram core sample from each of the two kimberlites. Results of the program will determine whether to proceed with bulk sampling.

Work will focus on a 243-hectare area covered by an exploration permit. The project also includes a 95,700-hectare exploration reservation.

Among other projects, Arctic Star holds the Cap property in east-central British Columbia, host to an extremely rare carbonatite-syenite complex that’s potentially associated with several commodities. In September the company reported “highly anomalous” assays for niobium, rare earths and phosphate from sampling and a drill hole.

In the Northwest Territories’ diamondiferous Lac de Gras region, Arctic Star also holds a 40% stake in the Diagras JV, where majority partner Margaret Lake Diamonds TSXV:DIA carried out geophysics last summer.

This week Arctic Star appointed Scott Eldridge as president/CEO. From 2008 to 2016 Eldridge led Euroscandic International Group, providing investment banking and advisory services to resource companies. He has been responsible for raising over $500 million in equity and debt financing for mining projects internationally.

Earlier this month the company closed a private placement first tranche of $965,000.

Read Isabel Belger’s interview with Arctic Star’s Patrick Power.

Arctic Star Exploration finds “highly anomalous” niobium, rare earths and phosphate at B.C. project

September 25th, 2017

by Greg Klein | September 25, 2017

Highly anomalous means highly encouraging, especially at such an early stage of exploration. That’s how Arctic Star Exploration TSXV:ADD characterized its first batch of assays from the Cap property in east-central British Columbia. The news follows last month’s announcement of an extremely rare carbonatite-syenite discovery, suggesting potential for a range of commodities. Now assays for grab samples and the first drill hole show highly anomalous niobium, rare earths and phosphate, the company stated.

Arctic Star Exploration finds “highly anomalous” niobium, rare earths and phosphate at B.C. project

Some intervals of
carbonatite from CAP17-004.

Five selected grab samples assayed 0.2% niobium pentoxide, hitting a peak of 0.96% Nb2O5, while three grab samples brought more than 0.2% total rare earth oxides, peaking at 0.39% TREO. Three samples contained over 5% phosphorus pentoxide with a peak value of 12.62% P2O5.

CAP17-004, the first of four drill holes, showed:

  • 0.35% Nb2O5 over 10.42 metres, starting at 85.24 metres in downhole depth
  • (including 0.63% Nb2O5 over 2.26 metres)

  • 9.94% P2O5 over 19.63 metres, starting at 98.87 metres
  • (including 20.97% P2O5 over 2.55 metres)

  • 0.81% TREO over 2.4 metres, starting at 136.1 metres

True widths weren’t provided. The last interval also showed a peak value of 69 ppb gold and over 1% TREO.

Along with sampling and drilling, the summer program included mapping and prospecting over an area of about three kilometres by one kilometre.

“The discovery of highly anomalous concentrations of niobium, phosphate and REOs at such an early stage in the exploration of the Cap project should be considered highly encouraging,” said consulting geologist Jody Dahrouge. “Future exploration at Cap will follow up on surface samples that contained highly anomalous concentrations of niobium and may be related to drill hole CAP17-004.”

Reporting from their Diagras diamond project in the Northwest Territories late last month, Arctic Star and 60% JV partner Margaret Lake Diamonds TSXV:DIA announced geophysical results that could potentially indicate “the largest kimberlite complex in the Lac de Gras field.” Further geophysics are on the 18,699-hectare property’s spring agenda, with drilling to follow.

As for Arctic Star’s recently acquired Timantti diamond project in Finland, assays released in July from historic core on the White Wolf kimberlite showed 111 microdiamonds. The company had earlier found 58 microdiamonds in an 18.9-kilogram sample taken from the same kimberlite.

Timantti covers part of the Fennoscandian Shield, host to major Russian diamond mines Lomonosov and Grib.

In July the company offered a $1.25-million private placement.

Read Isabel Belger’s interview with Arctic Star president/CEO Patrick Power.

Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

August 29th, 2017

by Greg Klein | August 29, 2017

Borrowing techniques that proved successful at Kennady North, Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD announced geophysical results that potentially expand their Diagras property’s known kimberlites. The partners hold 60% and 40% respectively of the joint venture in the Northwest Territories’ diamond-rich Lac de Gras region, where Margaret Lake acts as operator.

Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

Last spring’s ground program of magnetics, gravity and electromagnetics targeted known kimberlites as well as “unresolved targets generated from public domain data,” the companies stated. Similar techniques have helped Kennady Diamonds TSXV:KDI further its understanding of the Kennady North property’s Kelvin and Faraday kimberlites.

Results dating to 2005 on Diagras’ Jack Pine kimberlite identified a north-south axis extending more than 500 metres, with about four to five hectares at surface. But recent work north of Jack Pine shows a possible new discovery that’s been named Sequoia. Although verification would call for more drilling, the new findings indicate an anomaly that doubles the geophysical footprint, potentially making this “the largest kimberlite complex in the Lac de Gras field,” according to the partners.

Geophysics around Diagras’ Black Spruce kimberlite show anomalous gravity lows up to about 200 metres south and east of a magnetic low and its corresponding diamondiferous drill results by a previous operator. Again, drilling will be necessary to confirm the presence of additional kimberlite.

The partners also reported other geophysical signatures that might indicate additional kimberlite in and around other known kimberlites on the 18,699-hectare property. Further geophysical evaluations are planned for next spring, along with a drill program.

In addition to its Diagras interest, Margaret Lake holds its namesake Margaret Lake project adjacent to Kennady North. In July, Arctic Star announced plans to acquire the Timantti project in Finland, where due diligence has confirmed the presence of micro-diamonds. Arctic Star also holds the CAP rare earths and rare metals prospect in east-central British Columbia. Early this month the company announced discovery of a carbonatite-syenite complex, an extremely rare occurrence potentially associated with “a plethora of commodities” and “the dominant source for niobium and rare earth elements,” the company stated.

Late last month Arctic Star offered a private placement up to $1.25 million.

Read Isabel Belger’s interview with Arctic Star president/CEO Patrick Power.

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

July 26th, 2017

by Greg Klein | July 26, 2017

Just weeks after announcing plans to take on a diamond project in Finland, Arctic Star Exploration TSXV:ADD has found further encouragement by reanalyzing previous work. Recent assays on 48.65 kilograms of historically extracted split core showed 111 microdiamonds. The results represent approximately 52.7 metres of core from the Timantti property’s White Wolf kimberlite.

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

A due diligence program reported earlier this month confirmed 58 microdiamonds from an 18.9-kilogram White Wolf sample.

With most of the world’s diamond-bearing kimberlites showing an exponential relationship between small and large stones, the company plans to gather enough caustic fusion samples to evaluate the property’s diamond size distribution. Following ground geophysics, Arctic Star hopes to drill Timantti for additional samples, delineating the kimberlites’ size and shape.

Looking at an entirely different range of commodities, the company last week sent a drill crew to the Cap project in east-central British Columbia’s Rocky Mountain Rare Metal Belt. Tantalum, niobium and rare earths are among the targets on the 2,825-hectare property. In 2010 sampling results included 0.14% Nb2O5, 3,191 ppm zirconium and 547 ppm total rare earth elements. More sampling the following year brought grades including 0.27% Nb2O5 and 773 ppm TREE, while two historic, non-43-101 samples showed 0.13% and 0.1% TREE.

Arctic Star also holds a 40% interest in the Northwest Territories’ Diagras diamond project, where JV partner Margaret Lake Diamonds TSXV:DIA conducted a short geophysical program last May.

Arctic Star sees new diamond frontier in Finland

July 12th, 2017

by Greg Klein | July 12, 2017

A plan that so far has been a year in the making would have Arctic Star Exploration TSXV:ADD shift its diamond exploration focus from northern Canada to northern Finland. The Timantti (Finnish for “diamond”) project would begin with exploration rights over 243 hectares of kimberlites, with an additional 95,700 hectares of land to come under an exploration reservation permit for which the company has applied.

Arctic Star sees new diamond frontier in Finland

Small bulk samples dating to 2005 have revealed diamonds, while a more recent due diligence program confirmed 58 small stones in an 18.9-kilogram sample from the project’s White Wolf kimberlite.

The Wolf kimberlites lie on the Fennoscandian Shield, which also hosts the major diamond mines Lomonosov and Grib in Russia’s Arkhangelsk region.

Because kimberlites tend to occur in clusters, the Wolf kimberlites could indicate a more extensive group, according to Roy Spencer, who discovered the Wolf kimberlites. Data in the public domain shows a “cloud” of kimberlite indicator minerals across an approximately 80-kilometre-wide area roughly centred on the Wolf kimberlites, the company added. “The exploration reservation will allow Arctic Star to explore the entire region,” Spencer said.

A diamond exploration veteran with De Beers and other companies, Spencer “was largely responsible for the discovery of the world-class Grib kimberlite,” Arctic Star added. Spencer joins the company as a director.

On closing the acquisition, Arctic Star plans magnetic, gravity and EM surveys prior to drilling and a subsequent bulk sample on the road-accessible property, as well as regional airborne surveys.

Ranking fifth globally in the annual Fraser Institute survey of overall mining investment attractiveness, Finland boasts arctic infrastructure in relative profusion to northern Canada.

The deal would involve Arctic Star taking over Foriet Oy, a Finnish company that would become a wholly owned subsidiary, for 14.5 million shares at a deemed price of $0.20.

Arctic Star also welcomed Scott Eldridge’s appointment to the board. A co-founder and president/CEO of Euroscandic International Group, which provides accounting and investment banking services to resource companies, he has raised over $500 million in equity and debt for mining-related projects around the world.

Last May Arctic Star announced a brief geophysical program at the Diagras diamond project in the Northwest Territories, with work expected to finish mid-month. The company has a 40% stake in the JV, with Margaret Lake Diamonds TSXV:DIA holding the rest and acting as project operator.

Margaret Lake, Arctic Star begin geophysical search for NWT diamonds

May 9th, 2017

by Greg Klein | May 9, 2017

Modern geophysics and a new approach come to a property with diamondiferous kimberlites in the Northwest Territories’ prolific Lac de Gras region, as Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD start work on their Diagras JV. Expected to finish in mid-May, the program consists of ground gravity, magnetics and Ohm Mapper EM.

Margaret Lake, Arctic Star begin geophysical search for NWT diamonds

Margaret Lake and Arctic Star hold a 60% and 40% stake respectively, with Margaret Lake acting as project operator.

The companies hope to find non-magnetic evidence that was missed in the 1990s when De Beers flew airborne surveys that identified the property’s magnetic kimberlites.

Diagras hosts 13 known kimberlites, most of them diamondiferous, according to historic data. The property’s Jack Pine kimberlite shows “multiple phases with different geophysical responses,” the JV stated. “It is hoped that our planned surveys will reveal similar geology around the other pipes. There is also a good chance to find new kimberlites using these new ground geophysical techniques.”

In November the JV attributed those techniques to Kennady Diamonds’ (TSXV:KDI) progress at Kennady North, Lac de Gras’ most advanced exploration project.

Results of the Diagras program will be considered for follow-up drilling.

In January Arctic Star applied for a drill permit for its 100%-held CAP niobium-tantalum-REE property in north-central British Columbia. The company raised over $1.47 million in private placements that closed late last year.

Arctic Star looks to B.C. for rare metals and rare earths

January 17th, 2017

by Greg Klein | January 17, 2017

A previously acquired property gets new attention as Arctic Star Exploration TSXV:ADD applies for a drill permit to search for niobium, tantalum and rare earth elements in central British Columbia.

Arctic Star looks to B.C. for rare metals and rare earths

Field work during 2010 on the 2,825-hectare CAP project found 481 to 981 parts per million niobium, 1,125 to 3,191 ppm zirconium, over 100 ppm lanthanum, over 100 ppm cerium and over 50 ppm neodymium. Two historic, non-43-101 samples returned strongly anomalous results of 0.13% and 0.1% rare earth elements, the company stated.

A circular magnetic anomaly of about three to five kilometres’ diameter could indicate a carbonatite or similar intrusion at depth, Arctic Star added. “Carbonatite-related deposits are a major host for rare metals, such as niobium and tantalum, and rare earth elements.”

Located about 80 kilometres from Prince George, CAP can be reached by logging roads during the summer and helicopter year-round.

In December the company closed a second tranche of financings totalling $1.47 million, including $300,000 of flow-through earmarked for CAP.

In November Arctic Star announced a JV with Margaret Lake Diamonds TSXV:DIA on their newly compiled Diagras property in the Northwest Territories’ diamondiferous Lac de Gras region.

Arctic Star/Margaret Lake Diamonds form JV, follow Kennady’s approach to NWT kimberlites

November 15th, 2016

by Greg Klein | November 15, 2016

A new joint venture brings together Arctic Star Exploration TSXV:ADD and Margaret Lake Diamonds TSXV:DIA in the Northwest Territories’ Lac de Gras region. Finding inspiration in Kennady Diamonds’ (TSXV:KDI) success at Kennady North, the partners plan a similar approach to their newly compiled property.

By posting an approximately $200,000 bond with the NWT government, Margaret Lake has earned a 60% interest in 23 claims totalling 18,699 hectares comprising the Diagras property, the JV announced November 15. Hosting 13 known diamondiferous kimberlites, the claims were formerly part of Arctic Star’s 54,000-hectare T-Rex property.

Arctic Star/Margaret Lake Diamonds form JV, follow Kennady’s approach to NWT kimberlites

The bond accompanies an application to extend the Diagras claims to August 2017.

“We identified the claims we wanted to joint venture based on our evaluation of historic data and we specifically focused on those claims that have known kimberlitic occurrences,” said Margaret Lake president/CEO Paul Brockington. His company will act as project operator.

The JV intends to follow Kennady’s modus operandi. The property’s Kelvin and Faraday kimberlites were dropped by De Beers and Mountain Province Diamonds TSX:MPV as they advanced Gahcho Kué, recently opened as the world’s largest new diamond mine in 13 years.

De Beers considered Kelvin and Faraday low grade, based on their lack of prominent magnetic anomalies, according to the Arctic/Margaret JV. Mountain Province then spun out Kennady to explore the pipes. That company “applied ground geophysics, gravity and Ohm mapper EM, which revealed extensions to these kimberlites that were not revealed in the magnetics,” the Diagras partners stated. “Subsequent drilling and bulk sampling has shown that these non-magnetic phases of the kimberlites have superior diamond grades to the magnetic phases and significantly increase the tonnage potential.”

Looking at some nearby deposits, the JV states that certain kimberlites at the Rio Tinto NYSE:RIO/Dominion Diamond TSX:DDC Diavik mine and the high-grade portions of Peregrine Diamonds’ (TSX:PGD) majority-held DO-27 kimberlite “are non-magnetic, proof that a magnetic-only approach in the Lac de Gras field could miss significant diamondiferous kimberlite bodies.”

The JV plans to follow Kennady’s surveying approach at Diagras. Most of the property’s kimberlites have had only one to three drill holes into their magnetic anomalies.

The partners also see potential in “two untested geophysical targets and several diamond indicator mineral anomalies that are not clearly sourced from the known pipes.” Ground geophysics are scheduled to begin next spring.

Read how Lac de Gras diamond mines transformed the NWT economy.

Looking to Lac de Gras

August 27th, 2015

World diamond production drops but Canadians compete to make up the shortfall

by Greg Klein

An almost 4% increase in global diamond production by value last year coincided with an almost 4% drop in volume. Numbers released August 25 by the Kimberley Process Certification Scheme indicate higher prices kept revenue growing despite lower output. But, should December’s optimistic forecasts hold, demand will call for new sources. Among the most promising locations is Canada, which the Kimberley Process says held its third place spot for global production by value even as Russia pushed Botswana into second place. In fact Canada owes its status to just one region of the Northwest Territories, Lac de Gras, which hosts three current mines, a soon-to-be fourth and an encouraging exploration play.

The region’s most recent entry is Zimtu Capital TSXV:ZC, which on August 25 announced exploration had begun on the Munn Lake project held by the company and a staking partner. Despite about $5.7 million of work between 1996 and 2007 that found two diamondiferous kimberlites, the 14,000-hectare property has yet to undergo modern exploration.

World diamond production drops but Canadians compete to make up the shortfall

Of four kimberlites under its focus, Kennady Diamonds plans a
2015 maiden resource for Kelvin, further infill drilling for Faraday
1 and 2, and exploration at MZ.

Yet a previous 581-kilogram sample from the project’s Yuryi kimberlite showed 226 diamonds, among them 62 macro-diamonds above 0.5 millimetres in diameter. A 42-kilo sample from the Munn Lake kimberlite yielded two macros and 12 micro-diamonds. Over 2,500 samples revealed at least five distinct kimberlite indicator mineral (KIM) trains lining the property.

Zimtu now has a crew sampling KIMs to validate historic sampling and “provide additional insight into the diamondiferous potential of each area.”

Earlier this month Arctic Star Exploration TSXV:ADD announced plans to explore its 54,000-hectare T-Rex property in Lac de Gras. Historic work found over a dozen kimberlites, most of them diamondiferous, the company stated. Historic, non-43-101 results of a 436-kilo bulk sample from the Jack Pine kimberlite reported 572 micro-diamonds.

Another 299 micro-diamonds turned up in 360 kilos of Jack Pine kimberlite drilled in 2005, according to 43-101-compliant results.

Last June Arctic Star reported an update from North Arrow Minerals TSXV:NAR on Redemption, their Lac de Gras joint venture. Initial interpretation of ground geophysics indicates a number of targets for a potential 2016 winter drill program, Arctic Star stated. Its partner also has the property’s surficial geology under analysis to better define and interpret the region’s South Coppermine KIM train.

With about 97,220 hectares of Lac de Gras turf, Canterra Minerals TSXV:CTM said in June it’s identified several areas “that warrant further detailed exploration, including drilling,” along with other areas that could undergo till sampling and geophysics.

Last month Margaret Lake Diamonds TSXV:DIA announced an agreement, subject to TSXV approval, to acquire the remaining 40% interest in the Margaret Lake property, giving the company sole ownership. The company anticipates a winter drill program to test targets identified by last year’s airborne gravity survey. The 19,716-hectare property lies contiguous to the north and west of Kennady Diamonds’ (TSXV:KDI) Kennady North project, the region’s most advanced project other than the Gahcho Kué mine-to-be, which Kennady surrounds on three sides.

With four kimberlites under assessment at the 61,000-hectare property, Kennady reported results of a 443-tonne bulk sample from the Kelvin pipe on August 26. Of 16,247 diamonds recovered from four zones of Kelvin’s “more diluted” southeast lobe, 35 weighed over one carat. The zones averaged 2.02 carats per tonne for diamonds larger than 0.85 millimetres.

The lab described the five largest as follows:

  • 4.22-carat white/colourless, transparent macle with no inclusions

  • 3.95-carat brown, transparent aggregate with inclusions

  • 2.79-carat light brown, transparent aggregate with minor inclusions

  • 2.63-carat white/colourless, transparent octahedral with inclusions

  • 2.59-carat white/colourless, transparent dodecahedron with no inclusions

The project’s winter agenda calls for another bulk sample from Kelvin’s north lobe, where a 19-tonne mini-bulk sample last year averaged 2.59 carats per tonne. Kennady has Kelvin slated for a maiden resource by year-end. The company also has exploration drilling underway at the project’s MZ kimberlite and further infill drilling planned for the Faraday 1 and 2 pipes.

Kennady closed a $4-million private placement earlier this month.

 

In operation or under development: Canada’s diamond mines

Canada’s in the forefront of countries trying to make up the diamond supply shortfall, with new mines coming online as others face depletion. Besides the NWT’s three operations and De Beers’ Victor mine in Ontario, two others are in development.

Of the three Lac de Gras mines, Dominion Diamond’s (TSX:DDC) majority-held Ekati has about five years left to its life expectancy, although development of the Jay deposit could potentially add another 11 years.

Diavik, a Rio Tinto NYE:RIO/Dominion 60/40 JV, would last to 2023 with the addition of a fourth pipe.

De Beers’ Snap Lake could last to 2028, although with declining output. In March the global giant said an amended water licence might be necessary to avert a much earlier shutdown. In June the Mackenzie Valley Land and Water Board recommended the NWT government approve the application.

Ontario’s only diamond mine, De Beers’ Victor, faces depletion in 2018. The company hopes to postpone its doom by developing the Tango kimberlite, a smaller, lower-grade deposit seven kilometres northwest.

World diamond production drops but Canadians compete to make up the shortfall

On schedule for H2 2016 production, Gahcho Kué would
become “the world’s largest and richest new diamond mine,”
according to Mountain Province.

Now building Quebec’s first diamond mine, Stornoway Diamond TSX:SWY has operations scheduled to begin at Renard late next year and commercial production slated for Q2 2017. Although potential resource expansion continues, the company estimates Renard would supply 1.6 million carats annually for 11 years, providing about 2% of global supply.

A fourth Lac de Gras operation, destined to become “the world’s largest and richest new diamond mine,” remains on track for H2 2016 production. Mountain Province Diamonds TSX:MPV and joint venture partner De Beers expect Gahcho Kué to produce an annual average 4.5 million carats over a dozen years.

In Saskatchewan’s Fort à la Corne region, Shore Gold’s (TSX:SGF) majority-held Star-Orion South underwent a spring drill program to update the Orion South kimberlite’s resource. Although the project reached feasibility in 2011 and passed a federal environmental review in December, Shore now plans a revised feasibility to reduce capex.

In addition to regions around existing and future mines, Nunavut and Saskatchewan’s Pikoo region also draw significant diamond exploration.

Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.