Dear Grizzly Diamonds Shareholders,
In our ongoing efforts to provide broader communications and market
information, we are pleased to provide you with an Industry Sector Bulletin
that may interest you.
The following article details Diamondex Resources Ltd. and Shore Gold Ltd.
plans for their Buffalo Hills diamond project in Northern Alberta. The two
Companies are currently reviewing data and are looking to have geophysics
and core drilling completed with the possibility of mini-bulk and bulk
sampling on specific targets on the property. Note that
"Diamondex and Shore each bought a 22.5-per-cent interest in the play
from Stornoway Diamond Corp. after it acquired the project through its
takeover of Ashton Mining of Canada Inc." for $17.5 million
Grizzly Diamonds Ltd. can stand to benefit from any future
exploration work in the Buffalo Hills area, as the Company has 40 mineral
permits with this vicinity. Grizzly's properties encompass an area totaling
approximately 338,000 hectares (835,000 acres) and are situated adjacent to
Ashton Mining of Canada Inc.'s main Buffalo Head Hills property.
Click
here to view a map of the properties being discussed.
As of October 2nd, Grizzly Diamonds Approved a Fall Program for Buffalo
Head Hills Diamond Properties, Alberta, with drilling to commence in
January of 2008.
Click
here to read the release
For Further Information about Grizzly Diamonds Ltd. please feel free to
click the following link to visit the Company's Investor Relations Hub.
Grizzly
Diamonds IR Hub
Regards,
AGORACOM Investor Relations
Diamondex and
Shore Plan for Winter
2007-10-24 - Street Wire
by Will Purcell
Diamondex Resources Ltd. and Shore Gold Inc. are saying little about their
Buffalo Hills diamond project in Northern Alberta, but they are making
winter plans. Although it is not yet set, the advanced stage of the project
and an underlying option deal with Encana Corp. and Pure Diamonds
Exploration Inc. suggest the program will be a busy one.
The next steps
Diamondex and Shore each bought a 22.5-per-cent interest in the play from
Stornoway Diamond Corp. after it acquired the project through its takeover
of Ashton Mining of Canada Inc. In the heat of the takeover battle last
summer, Ashton signed a deal with two former Buffalo Hills partners that
could increase its share of the play to 72.5 per cent. As a result,
Diamondex and Shore can boost their respective shares to 36.25 per cent by
spending $7.5-million by the spring of 2010.
Shore's vice-president of exploration, Pieter du Plessis, said the two
partners were reviewing the data and would lay firm plans once that was
complete. He said Diamondex would operate the project, but Shore would be
providing guidance because of its experience in the Fort a la Corne
district of Saskatchewan. Both companies believe the Buffalo Hills
kimberlites have the same large tonnages and lower grades evident in the
Fort a la Corne district, where Shore Gold is working on a prefeasibility
study for one huge pipe and busy sampling a few others.
Mr. du Plessis said the Buffalo Hills plan would include geophysics and
core drilling, and once the partners assessed those results, they would
plan for mini-bulk and bulk sampling of the most prospective targets.
Ashton completed several mini-bulk tests of pipes, including one test
weighing several hundred tonnes, but Mr. du Plessis said there was just
limited data covering the individual kimberlite phases within the bodies.
The encouragement
If the Fort a la Corne model is pertinent to the Buffalo Hills play,
detailed assessments of each kimberlite phase will be key. Shore Gold's
first big vertical drill hole into Star produced a grade of about 0.07
carat per tonne. Subsequent testing showed that the upper part of the pipe
had a grade of about 0.02 carat per tonne, while the richer, deeper rock
averages about 0.15 carat per tonne, enough to push the project to
prefeasibility.
Ashton's tests of its best Buffalo Hills pipes yielded comparable grades.
The most advanced pipe was K-14, where a series of tests weighing 524
tonnes netted over 60 carats of diamonds, indicating a grade of 0.13 carat
per tonne. A 36-tonne test of the nearby K-91 pipe yielded a comparable
grade, and tests of the K-6 and K-11 pipes produced intriguing results as
well.
The best result came from the K-252 pipe, which is also close to K-14.
Ashton processed about 24 tonnes of kimberlite from the body and obtained a
grade of 0.55 carat per tonne, but the pipe was small, at less than two
hectares. Still, it could add valuable carats to a mine plan based on other
finds in the area.
Diamondex and Shore appear to have considerable tonnage potential in some
of Ashton's old finds and the grades are arguably as good as the Fort a la
Corne district is delivering. Further, the partners will not have the huge
depths of overburden to deal with that Shore is facing in Saskatchewan.
Although parts of the bodies lie below 70 metres of waste, some of the
Buffalo Hills kimberlites outcrop.
The fate of the project will ultimately rest on the value of the diamonds
in the Buffalo Hills pipes. The diamonds recovered so far appear smaller
than what Shore is finding in its Star pipe, but the Alberta partners will
need a large diamond parcel to settle the value question.
Diamondex closed up 2.5 cents to 24.5 cents Tuesday on 821,100 shares.