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Post by Franko10 ™ on Oct 13, 2005 19:25:54 GMT -5
Technical Report For the Fort à la Corne Diamond Project – May 18, 2004
History
The area has not been explored for the occurrence of kimberlites previously, although there are reports of a prospector having found as many as five diamonds in the Melfort-Nipawin area sometime prior to the Second World War. The story however, remains unsubstantiated as the diamonds were reportedly lost in a fire. A prospector hoping to follow-up on this report requested a permit from the provincial government in 1948 for exclusive diamond prospecting within Saskatchewan. The venture was abandoned because the government was only willing to grant a permit area of 259 km2.
The next report of diamond related activity was in 1961 when several stones were reportedly discovered in gravels downstream from Sturgeon Lake (northwest of Prince Albert). However, nothing of any substance developed as a result. At around the same time, a subsidiary of De Beers was reportedly conducting a regional exploration program throughout southern Saskatchewan. A full description of exploration activities leading up to the discovery of diamondiferous kimberlites in the Fort à la Corne area is given in Lehnert-Thiel et al. (1992). To date, no formal mineral resource or mineral reserve estimates for diamond have been made in the Fort à la Corne area.
Other than several aggregate deposits, no economic occurrences of minerals, oil or gas are known in the project area. Zones of banded iron formation in the Precambrian basement near Choiceland were investigated in 1955 by IREX and IPSCO. The IREX-Zone (155 Mt grading 28% Fe) and the IPSCO-Zone (55 Mt grading 27% to 29% Fe) were found to be uneconomic. A third body, the Kelsey Lake Zone investigated in 1975 (390 Mt at 34% Fe), was also found to be uneconomic. These deposits lie approximately 600 m below surface and were found to consist of interlayered bands of magnetite and hematite dipping 65 to 70 degrees to the east.
Oil and gas exploration wells have been drilled throughout the area, but none of them currently produces hydrocarbons. Groundwater exploration holes, water well, and oil and gas exploration holes are the main sources of information on the sub-Quaternary geology within the project area. Notably, none of these holes was ever reported to have encountered kimberlite.
Geological information on the area is available from groundwater testholes and oil and gas exploration wells. Geological maps of Quaternary deposits and other Phanerozoic units are available at a scale of 1:250,000. Information on the Precambrian basement within the project area is largely restricted to inferences gathered from airborne magnetic surveys. Data from a 1969 GSC airborne magnetic survey is available on 1:253,440 scale map sheets.
Activities by Competitors in the Fort à la Corne Area
Spurred by the public interest generated both by the results obtained from the Fort à la Corne Project and by the activities of the large number of companies actively exploring for diamonds across much of Canada, an area in excess of 100 km north-south x 80 km east-west, centred on the FalC-JV dispositions, is almost completely staked by in excess of 20 different companies. (NTS mapsheets 63L, 73G, H, I, and J).
Great Western Gold Corp. (GWG) and War Eagle Mining Co. Inc. jointly control two blocks of claims, termed the Candle Lake properties, at the north end of the Fort à la Corne kimberlite field. The southern block of claims is adjacent to the Rampton/Consolidated Pine Channel/United Carina Smeaton Property and contains the Candle Lake #28 kimberlite body. In all, and including a block of claims registered to Northmin Development, Great Western Gold and War Eagle Mining control 48 claims for a total of 22,882 ha. GWG conducted delineation drilling on Kimberlites 28, 29, and 30 during the mid 1990’s and was joined by Kennecott Canada in a joint venture to bulk sample Kimberlite 28. Kennecott collected a small minibulk kimberlite sample from drilling, but experienced severe drilling difficulties due to poor ground conditions. Kennecott eventually defaulted withdrew from the earn-in agreement due to corporate reasons. During 2003, GWG expanded their interest in the Candle Lake kimberlite properties with corresponding dilution of participating interest held by War Eagle Mining Company. A new core drilling program was implemented in 2003 and results have not yet been released by GWG.
United Carina Resources and Consolidated Pine Channel Gold were major participants in the exploration boom of 1993-94, with programs of aeromagnetic and follow-up ground magnetic surveys and drilling in the Montreal Lake – Wapawekka Lake area to the north, and the Torch River area east of Fort à la Corne. These companies recently renewed their kimberlite exploration programs by acquiring sizeable properties in the wider Fort à la Corne area and claims adjacent to the Cameco/DBCEI/Kensington kimberlite 122 on the west side of the main kimberlite cluster, during 2000. United Carina and Consolidated Pine Channel currently hold 55,147 hectares in 259 claims in the Fort à la Crone area.
A very large land position was acquired by Buckshot Holdings and Commando Holdings during 2001, and has been increased during 2002. The 597 claims cover 237,388 ha and extend from the Paddockwood area north of Prince Albert to Choiceland and Highway 6 in the east, surrounding the FalC-JV land on all sides except south of the Saskatchewan River.
Two more large land positions were acquired in December 2001. Twin Oaks Management staked most of 3 townships near Foxford and northeast of Birchbark Lake. The 30 claims cover 24,736 ha. General Resources Inc. acquired 46,694 ha in 100 claims, which incorporate most of 5 townships and parts of 2 more, extending north and northwest of the Rampton/Consolidated Pine Channel/United Carina Smeaton Property towards Candle Lake and also in the Weirdale area. In addition, Geodex and Forest Gate Resources each have claims located south and east of the FalC-JV lands, respectively.
Up to 2003, some limited drilling has been completed in the immediate vicinity of the FalC Kimberlite Field as well as further to the north (Smeaton, Wapawekka, and Candle Lake), although much of the work is of a speculative and promotional nature. These activities have indicated the presence of three kimberlites north of the Fort à la Corne area and two kimberlites (anomalies 137 and 139) in the former Crown Reserve along the southeast margin of the joint-venture land holdings. Shore Gold Inc. continues to maintain an interest in these southern-most bodies, and has extensively drilled the Star Kimberlite Body (anomaly #139) including core drilling and one 24 inch diameter, reverse circulation drillhole. On the basis of extensive work to produce a geological model for the Star Kimberlite by the Geological Survey of Canada, the Saskatchewan Geological Survey, Dr. John Bowles of Mineral Science Ltd., and consultants with ACA Howe, Shore Gold planned and initiated a bulk sample program to sample up to 25,000 tonnes of kimberlite for diamond recovery. A 4.5 metre diameter shaft was excavated during 2003 and 2004, and work continues on sampling the vertical and horizontal extend of kimberlite near the interpreted main vent of the Star Kimberlite. The shaft is currently at a depth greater than 230 metres and both horizontal drifting and underground delineation drilling are ongoing. Kimberlite samples are being processed through a 10 tonne per hour Dense Media Separation facility with final diamond recovery from DMS concentrate in a procedure combining x-ray sorting, grease table technology, and hand-picking.
In addition to the Weirdale, Foxford, and Birchbark Lake claims recently purchased from the FalC-JV, Shore Gold Inc. have progressively increased their land holdings at the southern margin of the Fort à la Corne area since 1995. Their most recent staking acquisitions were 3 small claims (60 ha) located at the junction of the North and South Saskatchewan Rivers. Shore Gold Inc. currently holds 138 claims for a total of 23,952 ha. Under an earn-in agreement with Shore Gold, Skeena Resources drilled two NQ coreholes into two different kimberlites within the Weirdale cluster. Both holes intersected kimberlite and core samples were submitted for diamond recovery. The evaluation program did not continue due to low diamond recoveries and Skeena withdrew from the earn-in agreement.
IPSCO maintains a small, scattered land base within a few 10’s of kilometers of the joint venture land holdings. A core-drilling program, reputed to include 3-4 drillholes, was conducted during the third quarter of 1999 on claims located east of the joint venture land holdings and close to Highway #6, which bisects the Fort à la Corne Forest Reserve from north to south. Results from these drillholes have not been reported yet.
Shane Resources Ltd. and a small consortium of companies have several coreholes in the vicinity of Smeaton, in the southern part of the Fort à la Corne Forest, and immediately west of the joint venture holdings near the 122 kimberlite body. Drilling in the Smeaton area intersected thin kimberlite stringers on the margin of a known kimberlite body and a few, thin kimberlitic horizons were interpreted from the more recent drillholes (2001) located near the 122 kimberlite. The latter claims are now being managed by Forest Gate Resources Inc.
Forest Gate Resources drilled a small geophysical anomaly east of the Joint Venture landholdings approximately 2 kilometres from kimberlite body 119 during the 2nd quarter of 2003. Their first NQ drillhole intersected kimberlite, but the hole was lost after intersecting some 26 metres of kimberlite. Subsequent attempts to intersect kimberlite by NQ and HQ coreholes were defeated due to bad ground conditions in the glacial overburden causing the holes to be lost above kimberlite. Forest Gate resumed investigation of the Dizzy Kimberlite during November 2003. Five NQ holes were targeted on the central part of the magnetic anomaly, all within some 50 metres of the discovery hole. Details and results of the drilling program have not yet been released by Forest Gate.
Casavant Mining Kimberlite International (CMKM) drilled a known, small kimberlite body (the “Smeaton Kimberlite”) located approximately 10 km north of the northwestern end of the main FalC kimberlite trend. Their drillhole encountered kimberlite, but the extent of sampling currently is unknown. The drillhole was completed during the first quarter of 2004. Historically, the Smeaton Kimberlite has been penetrated during at least three other drilling programs by junior exploration companies including Shane Resources Ltd. Meager recovery of microdiamonds has previously been reported, but no effort has been made to substantially sample the kimberlite.
During April of 2004, Garnet Point Resources Corp. and Global Prospecting Ventures Inc. created a joint venture to evaluate potential for small-scale mining of the Sturgeon Lake glacially-rafted kimberlite block located west of Prince Albert. The companies also mobilized a drill to their Candle Lake Claims located east of the narrow Hills Provincial Park for a 5 hole NQ drilling program. Geophysical anomalies identified in a ground geophysical program by contractor, Spectra management Corp., were targeted by the holes, but no kimberlite was intersected. The target anomalies occur in a broad tract of land that was thought to be in line with the northwest trend of the main FalC Kimberlite Field.
History
The area has not been explored for the occurrence of kimberlites previously, although there are reports of a prospector having found as many as five diamonds in the Melfort-Nipawin area sometime prior to the Second World War. The story however, remains unsubstantiated as the diamonds were reportedly lost in a fire. A prospector hoping to follow-up on this report requested a permit from the provincial government in 1948 for exclusive diamond prospecting within Saskatchewan. The venture was abandoned because the government was only willing to grant a permit area of 259 km2.
The next report of diamond related activity was in 1961 when several stones were reportedly discovered in gravels downstream from Sturgeon Lake (northwest of Prince Albert). However, nothing of any substance developed as a result. At around the same time, a subsidiary of De Beers was reportedly conducting a regional exploration program throughout southern Saskatchewan. A full description of exploration activities leading up to the discovery of diamondiferous kimberlites in the Fort à la Corne area is given in Lehnert-Thiel et al. (1992). To date, no formal mineral resource or mineral reserve estimates for diamond have been made in the Fort à la Corne area.
Other than several aggregate deposits, no economic occurrences of minerals, oil or gas are known in the project area. Zones of banded iron formation in the Precambrian basement near Choiceland were investigated in 1955 by IREX and IPSCO. The IREX-Zone (155 Mt grading 28% Fe) and the IPSCO-Zone (55 Mt grading 27% to 29% Fe) were found to be uneconomic. A third body, the Kelsey Lake Zone investigated in 1975 (390 Mt at 34% Fe), was also found to be uneconomic. These deposits lie approximately 600 m below surface and were found to consist of interlayered bands of magnetite and hematite dipping 65 to 70 degrees to the east.
Oil and gas exploration wells have been drilled throughout the area, but none of them currently produces hydrocarbons. Groundwater exploration holes, water well, and oil and gas exploration holes are the main sources of information on the sub-Quaternary geology within the project area. Notably, none of these holes was ever reported to have encountered kimberlite.
Geological information on the area is available from groundwater testholes and oil and gas exploration wells. Geological maps of Quaternary deposits and other Phanerozoic units are available at a scale of 1:250,000. Information on the Precambrian basement within the project area is largely restricted to inferences gathered from airborne magnetic surveys. Data from a 1969 GSC airborne magnetic survey is available on 1:253,440 scale map sheets.
Activities by Competitors in the Fort à la Corne Area
Spurred by the public interest generated both by the results obtained from the Fort à la Corne Project and by the activities of the large number of companies actively exploring for diamonds across much of Canada, an area in excess of 100 km north-south x 80 km east-west, centred on the FalC-JV dispositions, is almost completely staked by in excess of 20 different companies. (NTS mapsheets 63L, 73G, H, I, and J).
Great Western Gold Corp. (GWG) and War Eagle Mining Co. Inc. jointly control two blocks of claims, termed the Candle Lake properties, at the north end of the Fort à la Corne kimberlite field. The southern block of claims is adjacent to the Rampton/Consolidated Pine Channel/United Carina Smeaton Property and contains the Candle Lake #28 kimberlite body. In all, and including a block of claims registered to Northmin Development, Great Western Gold and War Eagle Mining control 48 claims for a total of 22,882 ha. GWG conducted delineation drilling on Kimberlites 28, 29, and 30 during the mid 1990’s and was joined by Kennecott Canada in a joint venture to bulk sample Kimberlite 28. Kennecott collected a small minibulk kimberlite sample from drilling, but experienced severe drilling difficulties due to poor ground conditions. Kennecott eventually defaulted withdrew from the earn-in agreement due to corporate reasons. During 2003, GWG expanded their interest in the Candle Lake kimberlite properties with corresponding dilution of participating interest held by War Eagle Mining Company. A new core drilling program was implemented in 2003 and results have not yet been released by GWG.
United Carina Resources and Consolidated Pine Channel Gold were major participants in the exploration boom of 1993-94, with programs of aeromagnetic and follow-up ground magnetic surveys and drilling in the Montreal Lake – Wapawekka Lake area to the north, and the Torch River area east of Fort à la Corne. These companies recently renewed their kimberlite exploration programs by acquiring sizeable properties in the wider Fort à la Corne area and claims adjacent to the Cameco/DBCEI/Kensington kimberlite 122 on the west side of the main kimberlite cluster, during 2000. United Carina and Consolidated Pine Channel currently hold 55,147 hectares in 259 claims in the Fort à la Crone area.
A very large land position was acquired by Buckshot Holdings and Commando Holdings during 2001, and has been increased during 2002. The 597 claims cover 237,388 ha and extend from the Paddockwood area north of Prince Albert to Choiceland and Highway 6 in the east, surrounding the FalC-JV land on all sides except south of the Saskatchewan River.
Two more large land positions were acquired in December 2001. Twin Oaks Management staked most of 3 townships near Foxford and northeast of Birchbark Lake. The 30 claims cover 24,736 ha. General Resources Inc. acquired 46,694 ha in 100 claims, which incorporate most of 5 townships and parts of 2 more, extending north and northwest of the Rampton/Consolidated Pine Channel/United Carina Smeaton Property towards Candle Lake and also in the Weirdale area. In addition, Geodex and Forest Gate Resources each have claims located south and east of the FalC-JV lands, respectively.
Up to 2003, some limited drilling has been completed in the immediate vicinity of the FalC Kimberlite Field as well as further to the north (Smeaton, Wapawekka, and Candle Lake), although much of the work is of a speculative and promotional nature. These activities have indicated the presence of three kimberlites north of the Fort à la Corne area and two kimberlites (anomalies 137 and 139) in the former Crown Reserve along the southeast margin of the joint-venture land holdings. Shore Gold Inc. continues to maintain an interest in these southern-most bodies, and has extensively drilled the Star Kimberlite Body (anomaly #139) including core drilling and one 24 inch diameter, reverse circulation drillhole. On the basis of extensive work to produce a geological model for the Star Kimberlite by the Geological Survey of Canada, the Saskatchewan Geological Survey, Dr. John Bowles of Mineral Science Ltd., and consultants with ACA Howe, Shore Gold planned and initiated a bulk sample program to sample up to 25,000 tonnes of kimberlite for diamond recovery. A 4.5 metre diameter shaft was excavated during 2003 and 2004, and work continues on sampling the vertical and horizontal extend of kimberlite near the interpreted main vent of the Star Kimberlite. The shaft is currently at a depth greater than 230 metres and both horizontal drifting and underground delineation drilling are ongoing. Kimberlite samples are being processed through a 10 tonne per hour Dense Media Separation facility with final diamond recovery from DMS concentrate in a procedure combining x-ray sorting, grease table technology, and hand-picking.
In addition to the Weirdale, Foxford, and Birchbark Lake claims recently purchased from the FalC-JV, Shore Gold Inc. have progressively increased their land holdings at the southern margin of the Fort à la Corne area since 1995. Their most recent staking acquisitions were 3 small claims (60 ha) located at the junction of the North and South Saskatchewan Rivers. Shore Gold Inc. currently holds 138 claims for a total of 23,952 ha. Under an earn-in agreement with Shore Gold, Skeena Resources drilled two NQ coreholes into two different kimberlites within the Weirdale cluster. Both holes intersected kimberlite and core samples were submitted for diamond recovery. The evaluation program did not continue due to low diamond recoveries and Skeena withdrew from the earn-in agreement.
IPSCO maintains a small, scattered land base within a few 10’s of kilometers of the joint venture land holdings. A core-drilling program, reputed to include 3-4 drillholes, was conducted during the third quarter of 1999 on claims located east of the joint venture land holdings and close to Highway #6, which bisects the Fort à la Corne Forest Reserve from north to south. Results from these drillholes have not been reported yet.
Shane Resources Ltd. and a small consortium of companies have several coreholes in the vicinity of Smeaton, in the southern part of the Fort à la Corne Forest, and immediately west of the joint venture holdings near the 122 kimberlite body. Drilling in the Smeaton area intersected thin kimberlite stringers on the margin of a known kimberlite body and a few, thin kimberlitic horizons were interpreted from the more recent drillholes (2001) located near the 122 kimberlite. The latter claims are now being managed by Forest Gate Resources Inc.
Forest Gate Resources drilled a small geophysical anomaly east of the Joint Venture landholdings approximately 2 kilometres from kimberlite body 119 during the 2nd quarter of 2003. Their first NQ drillhole intersected kimberlite, but the hole was lost after intersecting some 26 metres of kimberlite. Subsequent attempts to intersect kimberlite by NQ and HQ coreholes were defeated due to bad ground conditions in the glacial overburden causing the holes to be lost above kimberlite. Forest Gate resumed investigation of the Dizzy Kimberlite during November 2003. Five NQ holes were targeted on the central part of the magnetic anomaly, all within some 50 metres of the discovery hole. Details and results of the drilling program have not yet been released by Forest Gate.
Casavant Mining Kimberlite International (CMKM) drilled a known, small kimberlite body (the “Smeaton Kimberlite”) located approximately 10 km north of the northwestern end of the main FalC kimberlite trend. Their drillhole encountered kimberlite, but the extent of sampling currently is unknown. The drillhole was completed during the first quarter of 2004. Historically, the Smeaton Kimberlite has been penetrated during at least three other drilling programs by junior exploration companies including Shane Resources Ltd. Meager recovery of microdiamonds has previously been reported, but no effort has been made to substantially sample the kimberlite.
During April of 2004, Garnet Point Resources Corp. and Global Prospecting Ventures Inc. created a joint venture to evaluate potential for small-scale mining of the Sturgeon Lake glacially-rafted kimberlite block located west of Prince Albert. The companies also mobilized a drill to their Candle Lake Claims located east of the narrow Hills Provincial Park for a 5 hole NQ drilling program. Geophysical anomalies identified in a ground geophysical program by contractor, Spectra management Corp., were targeted by the holes, but no kimberlite was intersected. The target anomalies occur in a broad tract of land that was thought to be in line with the northwest trend of the main FalC Kimberlite Field.
