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The discovery of diamonds in Canada’s far northern regions in the mid
1990s kick-started the Canadian diamond industry and upset the De Beers
cartel.
Chuck Fipke’s relentless search, and eventual success, on the shores of
Lac de Gras eventually led to the establishment of the Ekati diamond mine and
the discovery of over 130 kimberlite pipes on a 344,000 hectare claim block.
A short while later Aber Resources followed up with the discovery of the
Diavik diamond mine.
“On a bitterly cold day in April 1990, Fipke began frantically
chipping through ice and rock in the hopes of collecting tell-tale samples.
The following year, a drilling expedition in the same area yielded eighty-one
tiny diamonds. The site, on the shores of Lac de Gras, became Ekati, Canada's
first diamond mine. Fipke's discovery sparked the largest staking rush in
Canadian history, perhaps the largest in the world to that point. Some fifty
million acres were claimed in a manic dash over the next two years.
One of the first on the scene was Grenville Thomas, a Welshman based
in Vancouver who had been prospecting in the Territories since the mid-
1960's. He teamed up with the experienced South African diamond hunter Chris
Jennings and, to disguise their true intentions, the two flew up to
Yellowknife separately, stayed in different hotels and avoided being seen in
public together. They knew De Beers, the diamond mining behemoth, was already
staking land to the Northeast of the Ekati claim block, and so, in a decision
that would prove fortuitous for Thomas's company, Aber Resources, they moved
to the southeast.” DiaMine, Canadian Diamond Exploration
Winspear Resources found diamonds at Snap Lake. The property was acquired
in 2000 by the South African diamond-mining giant, De Beers. Snap Lake is De
Beers first diamond mine outside South Africa and Canada’s first all
underground mine.
Canada’s far far north than had a turn under the diamond spotlight.
Up next to create a fourth wave of diamond fever was the Ft. a La Corne
play in Saskatchewan, Canada.
Have you ever heard of an investor, an early investor, into a diamond play
losing money? Nope you haven't, because, at least to my knowledge, it rarely
happens. Being in on the ground floor of new diamond discoveries
generally means you have plenty of opportunity over the coming years to ride
the diamond rollercoaster.
Fortunes were created for many when Chuck Fipke and Stu Blussom found
diamonds in Canada’s far north. DiaMet went from .60 to $63.00, lots of close
in plays went to $10 and a few further out ran to $2, $3 and even more
remarkable for plays on the edge, $4.
Reading the many different investor blogs it seemed like Gren Thomas’ Aber
Resources was minting a new millionaire a day.
Fort a La Corne was a winner for early investors. KRT ran to over $2.00
several times, got bought at over $2.00 while SGF ran from .30 to $8.00.
Buffalo Hills in Alberta was another winner for early investors even though
there was nothing found of economic interest.
Ever hear of Manitoba's diamond play? No? Well many did and a lot of people
made money even though NO kimberlite was found, apparently just the
excitement of diamonds potentially being there is enough to reap early
investors rewards.
Quebec diamond plays made investors money - Arctic Star, Ashton and Stornoway
investors did well.
Up in Canada's eastern Arctic, Shear Minerals and others had a great play
going.
Mountain Province did well for investors, and there's been a few more that
have slipped from my memory.
The question I’ve been asking myself is: “Is diamond
fever going to happen, in Saskatchewan, again?”
I’m going to answer my own question with an unqualified yes. Grenville
Thomas is at it again, his North Arrow Minerals (TSX.V – NAR)
discovered a new kimberlite field, perhaps an entirely new district, at Pikoo
in 2013. A 209.7-kg sample from the PK150 kimberlite returned 23
commercial-size diamonds (larger than the 0.85-mm sieve size). An amazing
return, and the kimberlite indicator mineral chemistry has been described by
some knowledgeable analysts as some of the best ever found.
“It was an exceptional result from such an early-stage project,
fuelling optimism that North Arrow has an economic deposit on its hands. As
Gren Thomas puts it, “we know enough about it now that we can say this thing,
if there’s enough tonnes, it can be commercial.” North Arrow hit kimberlite
in 9 of 10 drill holes completed on the property. Geologists spent the rest
of last year collecting and evaluating 560 till samples to help define new
drill targets, including several new kimberlite indicator mineral trains. A
3,000-metre drill program is now underway.” Tommy Humphreys, Gem
Hunting with a Diamond Pioneer
NAR is drilling, they have till sampling results to release as well. They
have a high Arctic deposit they did a bulk sample on - lots of diamond news
to generate excitement coming from them.
Of course North Arrow is the leader in the North Sask Craton Diamond Play
and with all it’s coming news, and the fact it already has diamonds, it could
very well be the play of choice for investors. But with limited trading in
the .60’s and securing a decent sized position almost impossible there are
other options.
Strike is in the play for its immense land package up ice, and down ice,
from the Pikoo Discoveries.
Strike Diamond (TSXV: SRK) announced in May 2014 that it had struck a deal
to acquire 80% of two land packages totaling 5,424 sq. km in the Sask Craton
near North Arrow Minerals’ (TSXV: NAR) and Stornoway Diamond’s (TSX: SWY)
Pikoo joint venture in Saskatchewan.
SRK has a lot of up-ice till sample results that will be out within a
month.
One other thing I should mention is SRK's small float. There’s 25m shares
outstanding, many are held by Ryan Kalt (CEO, president & treasurer)
& Jody Dahrouge (VP Exploration) and are essentially locked up. The
trade-able float is small considering the quality of news that might be
coming. There are still some shares available but good till sample results
from SRK combined with good news, from NAR - they hit a pipe or long
kimberlite intersection - will, or should, tighten availability considerably.
Looking at the claim,
and indicator, map you could put Athabasca Nuclear TSX.V –
ASC, Eagle Plains TSX.V - EPL and Canadian International Minerals TSX.V –
CIN, on your radar screen - EPL & CIN’s up ice properties are 70% owned
by North Arrow.
Conclusion
North Arrow Minerals (TSX.V – NAR) discovered a new kimberlite
field, perhaps an entirely new district, at Pikoo in 2013.
How can I say this? Well, go back to the above linked to map
and look at the difference between NAR’s Pikoo indicator minerals and Alto’s.
The GEFA claims indicator chemistry looks very different than the indicator
chemistry from North Arrow’s Pikoo claims. If the chemistry was the same, or
similar between the two claim blocks chances are we’re looking at a few
pipes, one group of dykes/pipes. But they are different enough that I believe
we’re looking at a couple of different kimberlite field emplacements, a
kimberlite district.
Canada is now the world’s third largest producer of diamonds by value,
with four operating mines and another two under construction.
The ancient Greeks believed that diamonds were splinters of stars fallen
on the earth. Others believed the earth was sown with diamonds from meteor
impacts. Hard to invest in that! Fortunately we have our ongoing North Sask
Craton Diamond Play. And things could get very exciting, very quickly - on
Thursday, the 26th of February, North Arrow spooked the market by halting
trading in their company for a few hours. During the halt Strike Diamond
doubled in price, going from .075 to .145 on low volume (the news, when
revealed, was about NAR’s Qilalugaq Bulk Sample, not the Pikoo play.)
Is being early into a diamond play, and perhaps the next big thing in
Canadian exploration, on your radar screen?
If not, maybe it should be.
Richard lives with his family on a 160 acre ranch in northern British
Columbia. He invests in the resource and biotechnology/pharmaceutical sectors
and is the owner of Aheadoftheherd.com. His articles have been published on
over 400 websites, including:
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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or
the solicitation of an offer to purchase or subscribe for any investment.
Richard Mills has based this document on information obtained from sources
he believes to be reliable but which has not been independently verified.
Richard Mills makes no guarantee, representation or warranty and accepts
no responsibility or liability as to its accuracy or completeness.
Expressions of opinion are those of Richard Mills only and are subject to
change without notice. Richard Mills assumes no warranty, liability or
guarantee for the current relevance, correctness or completeness of any
information provided within this Report and will not be held liable for the
consequence of reliance upon any opinion or statement contained herein or any
omission.
Furthermore, I, Richard Mills, assume no liability for any direct or
indirect loss or damage or, in particular, for lost profit, which you may
incur as a result of the use and existence of the information provided within
this Report.
Strike Diamond TSX.V-SRK is a paid sponsor of Richard’s site
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Athabasca Nuclear TSX.V–ASC is a paid sponsor of Richard’s site
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Richard owns shares in SRK & CIN.
This article is not paid for content.
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