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April 2001

As the founding firm in the Canadian diamond rush lingers without a buyer, the country is being tapped at an increasing basis for diamond exploration by mining companies around the world.

Dia Met, Canada’s first diamond miner—which began producing diamonds in 1998—has been for sale since Oct. 17. There is still no buyer for the firm, owner of the Ekati mine in Canada’s Northwest Territories.

In other areas, however, the rush to discover diamonds continues as new ventures continue to emerge:

Ashton Mining recently announced the discovery of new kimberlite in Alberta. Two priority targets were drilled and results indicate a site of kimberlite at least 200 meters in diameter. The sites are on Ashton’s Buffalo Hills property in Alberta. The site is a joint venture among Ashton, Alberta Energy Company and Pure Gold Minerals.

De Beers, meanwhile, has signed a $5.5 million exploration agreement with KWG Resources and Spider Resources for exploration in northern Ontario. In 2000, De Beers signed a confidentiality agreement and investigated the area’s diamond potential. Under an initial two-year option, De Beers must spend $1.5 million in exploration and will acquire 50 percent ownership in any mining claims staked.

Canabrava Diamond Corporation and Navigator Exploration, meanwhile, have begun drilling on the Frontier Project in Northern Ontario. The two have an agreement to explore more than 400,000 km. of Ontario’s Superior Province.

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