The Northern Miner: Diamonds in Canada

Transcription

—IN CANADA—
May 2015
Kennady’s
geological puzzle
PG.12
delivers
Miner balances
dividend, caPital
sPendinG PG.8
the latest from
Canada’s juniors
PG.14
Notes on the
diamond marKet
PG.5
Complimentary
PM no. 40069240
May 2015 v
1-13_Cover-Kennady.indd 1
1
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15-05-06 2:38 PM
Contents
5
May 2015
12
14
Editorial
is kEnnady north onE of a kind?
Plenty to do for proposed association . . . . . . . . . . . . 4
Project manager Gary Vivian discusses the
project’s unusual geology
By Alisha Hiyate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
diamond stocks strongEr
than EvEr
A Q&A with RBC Capital Markets mining analyst
Des Kilalea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
around thE world
the latest news from Canadian-listed
diamond plays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
dominion dElivErs
on the cover: Rough
diamonds from Dominion
Diamond’s ekati mine, in the
northwest territories.
Miner balances dividend, capital spending
By Trish Saywell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
diamond association on
thE horizon?
Miners meet to discuss marketing, synthetics
and research
By Alisha Hiyate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Credit: Dominion Diamond
Digital copy available to subscribers at www.northernminer.com
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Alisha Hiyate
Editor
‘I think
it’s very
important
for the
producers
to come
together to
really try
to push the
diamond
category as a
luxury item,’
— De Beers
CEO Philippe
Mellier
Plenty to do for
proposed association
N
o one is forecasting that 2015 will be
a boom year for diamonds, but diamond miners are still looking good.
“Our view is that the diamond
sector continues to offer one of the better
medium-term investment cases given lack of
new production once the likes of Renard (Stornoway), Gahcho Kué (De Beers and Mountain
Province) and Jay (Dominion), as well as Petra
Diamonds’ expansion, come onstream,” wrote
RBC Capital Markets mining analyst Des Kilalea
in a March research note.
With several large mines, including Argyle,
Ekati and Diavik, nearing the end of their
mine lives in 2020, the analyst forecasts that
production will be flat to falling that decade.
“This bodes well for rough prices to be
supported, provided global growth and jewelry
sales growth remain robust,” Kilalea continued.
That caveat is important, and diamond
miners know it. While they can’t do anything
about global economic growth, they are thinking about what they can do to feed demand for
diamonds.
It’s one of the reasons eight miners, representing the vast majority of the world’s supply
of diamonds, got together in February to talk
about forming a producers’ association (See
Page 20).
The idea is to create a group that would
promote the sector, conduct research, and
tackle common issues such as undisclosed
synthetic diamonds and the need for generic
advertising to boost diamonds’ competitiveness
against other luxury categories.
“I think it’s very important for the producers to come together to really try to push the
diamond category as a luxury item,” said De
Beers CEO Philippe Mellier in an interview
with Bloomberg TV in March. “It has to start
with the producers because it’s very important
for us to create and sustain demand, so we
thought it was a pretty good idea to sit down
with the other producers to talk only about
one thing: promoting the category.”
We see this as a positive development for
the industry, for investors, and for consumers.
Another topic we’re monitoring is the tight
liquidity in the sector. While diamond miners
are generating lots of cash, diamantaires are
finding funding difficult to get.
Antwerp Diamond Bank, which according to
RBC Capital Markets was responsible for about
8-10% of midstream funding, announced in
September that it was closing down. Other
major diamond lenders, ABN Amro Diamond
Bank and Standard Chartered, have put in
place tougher lending criteria as non-performing loans have risen from 1% to 4-10% over the
past decade.
Another, perhaps more important reason
for the lack of liquidity is actually due to
concerns about undisclosed synthetic diamonds, says Lucara Diamonds president and
CEO, William Lamb (see Page 21). Because of
reports of synthetics being mixed into parcels,
lenders began to insist last year on GIA certification for diamonds as small as 0.2 carat. That
created a six-month backlog at GIA, which is
not set up to handle such volumes.
As Lamb points out, diamantaires aren’t
able to sell diamonds they don’t have.
That brings us back to the potential producers’ association — which could reassure lenders
and consumers about the sector’s ability to
detect synthetics.
There hasn’t been any official word on the
group yet, but the need — and the potential
rewards for the industry — are clear enough.
As ever, we welcome your feedback at
[email protected].
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Diamond stocks
stronger than ever:
analyst Des Kilalea
Fresh off RBC Capital Markets’ 8th annual diamond
conference, held in March in Toronto, Diamonds in
Canada interviewed RBC mining analyst Des Kilalea
in late March. Kilalea discussed the state of the
diamond market and spoke about the current
disconnect between optimistic miners with cash
flow to spare on one hand and the pain being
felt elsewhere in the diamond sector. He also
discussed some of his preferred diamond stocks.
Diamonds in Canada: What were your main takeaways
from attending RBC's diamond conference? Were there any
surprises?
Des Kilalea: The main takeaways from the RBC conference
included the strong financial position of the diamond miners
and developers — perhaps the most financially robust the sector has ever been. This sees the likes of Petra Diamonds (LSE:
PDL), Dominion Diamond (TSX: DDC; NYSE: DDC), Lucara
Diamond (TSX: LUC) and Gem Diamonds (LSE: GEMD) all
either paying dividends or about to pay dividends as free cash
flow is generated.
Another theme was improved investor interest in the sector,
given diamond miners’ outperformance of most mining indices
in the past two years.
DiC: You’ve written that you expect diamond prices to be flat
to slightly lower (up to 5%) this year. When do you see a robust
market returning?
Des Kilalea: We think rough prices will start recovering
towards year end and into 2016 as the global economy improves.
Diamond jewelry demand growth at present is relatively muted
A rough
diamond from
Rio tinto’s
60%-owned
Diavik mine in
the northwest
territories.
Credit: Rio tinto
as evidenced in the recent De Beers Diamond Insight Report.
China’s 2014 jewelry demand growth was 6% in local currency
and India 3% in local currency. A strong U.S. dollar is not helping
retail demand in soft currency countries.
Longer-term, it still looks as if supply will be flat to lower.
So, if demand continues in the U.S., China and other jewelry
markets, the prospect for a firm underpin to rough prices exists from 2017 onwards. Naturally, issues such as synthetics
and competition from the likes of other “luxuries,” such as the
new Apple Watch, need to be addressed — perhaps by renewed
generic advertising.
DiC: Diamantaires are having a tough time with liquidity. Why
is liquidity so tight? Why are banks withdrawing from the
diamond sector or cutting their exposure?
Des Kilalea: The middle of the diamond pipeline started relying on bank debt when De Beers ceased to be pipeline manager.
The global financial crisis probably precipitated the current
tightness in funding as it led, eventually, to Antwerp Diamond
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Bank withdrawing from the sector (it announced in September
2014 it would not be making any new loans). In addition, other
leading banks started reassessing the risk/reward proposition in
lending to the sector and decided to reduce exposure.
New funding sources will emerge, such as direct retailer
deals with miners and Middle Eastern banks coming in, as well
as a new player in India (Industind Bank), but it is likely to take
having to address their supply and prices. This resulted in De
Beers and Alrosa (RTS: ALRS) reducing prices 3-5% in the first
quarter of 2015, and both allowing customers to defer goods.
The optimistic forecasts of leading producers, such as De Beers
and Alrosa, are probably somewhat at odds with the mood in
cutting centres right now.
DiC: What are your thoughts on the idea of an industry association for diamond miners, as reported by Bloomberg in February?
Is collaboration on synthetics, marketing and potentially other
issues necessary now that De Beers is not in control of the
industry?
Stornoway Diamond’s Renard
project, in Quebec.
Credit: Stornoway
Des Kilalea: An industry association makes sense to tackle synthetics. The association might also look at the benefits of some
generic advertising to boost diamond jewelry's share of luxury
spending. De Beers’ Diamond Insight Report last year showed
that growth in demand for luxury jewelry was well below that
of electronic gadgets, fine wines, accessories, etc., in the period
2004-2013.
some time. In addition, it is likely the size of the pipeline will
shrink with less rough and polished tied up between the mines
and the retailers.
DiC: It doesn't seem sustainable for diamantaires to be struggling while diamond producers are doing quite well. How do
you expect that to get resolved?
Des Kilalea: Diamond miners have been able to dictate prices
to some extent because of the availability of funding in the
pipeline. But with banks refusing to lend on low margin or
loss-making business, the miners, in particular the big ones, are
DiC: Undisclosed synthetics have been a concern for the industry
for a while now: How is the industry dealing with synthetics?
Des Kilalea: The efforts to counteract undisclosed synthetics
need to be boosted. De Beers is introducing new equipment and
a producers’ association (see previous question) could help push
this. It is a potentially serious issue unless the producers, cutters/
polishers and the retailers get to grips with it. Highlighting the
importance of decent grading labs for better stones is also key
to getting undisclosed stones off the market.
DiC: What about recycled diamonds?
The Star-Orion South Diamond Project Feasibility Study confirms
that a world class diamond mine is feasible in Saskatchewan.
• Probable Mineral Reserves of 279 million tonnes containing 34.4 million
carats at a weighted price of US$242 per carat.
• Inferred Mineral Resources 9.1 million carats.
Considerable upside potential:
• Target For Further Exploration estimated to include between 983 million
and 1.17 billion tonnes of kimberlite containing between 52 and 90 million
carats of diamonds.
Positive decision on EIS from Federal Ministry of Environment received
in December 2014.
Des Kilalea: Recycled diamonds have
always been around, but like anything, the
larger the market, the more this grows. De
Beers is trying to highlight the fact that diamonds sold secondhand may not be fetching
real value. Overall, this is a natural result of
a growth market and for cutters/polishers, it
remains an attractive source of stones.
DiC: You are not expecting an exciting year
for the diamond sector in terms of diamond
prices — you’re modelling flat to 3% lower.
However, you expect diamond stocks to
maintain their preferred status compared
to other mining stocks. What are your
preferred names and why?
Des Kilalea: The major producing companies (Petra, Dominion, Lucara and Gem)
are now finally very robust financially and
15-05-06 2:38 PM
Lucara Diamond’s Karowe
mine, in Botswana.
Credit: Lucara Diamond
able to pay dividends. This should underpin their investment
case. We like the leading producers, such as Petra and Dominion,
and also think developers such as Stornoway Diamond (TSX:
SWY) and Mountain Province Diamonds (TSX: MPV; NASDAQ: MDM) are attractive because they have good projects and
the funds to build them.
DiC: You have an “outperform” rating on all of the diamond
stocks that you cover except for Alrosa, indicating that the
companies are in good shape and that the fundamentals for
diamonds are good. But the highest implied returns (based on
current share prices and your target prices) are for developers
Stornoway Diamond and Mountain Province Diamond. What
makes the potential upside so high for these companies and what
are the potential risks to that upside for each?
Des Kilalea: The market tends to place a discount on developers
with that discount narrowing as projects move closer to production. The risks to developers are slippage in project time lines
and capex overruns. If companies are fully funded and are able
to bring projects in more or less on time and within budget,
re-ratings should follow.
DiC: You note that here's a trend among diamond producers,
who are doing very well, to start paying dividends. Lukas Lundin
last year mentioned that Lucara (the first to institute a dividend
last year) started paying dividends to attract a new class of investors. Do you see that happening yet?
Des Kilalea: For investors to buy for dividends, the dividends
need to offer decent yields of 4% or higher. Over the next year or
two, the diamond sector will attract investors for the dividends,
I think.
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Miner balances dividend,
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By trish
sAywell
speciAl to
DiamonDs in
CanaDa
espite a softening in rough diamond
prices, Dominion Diamond (TSX:
DDC; NYSE: DDC) generated significant free cash flow in fiscal 2015 —
paving the way for the company’s first dividend
payment since the benefit was suspended in early
2009 due to the financial crisis.
The diamond miner generated US$183 million in
free cash flow or free cash flow per share of US$2.15,
in the year ended Jan. 31, 2015, compared with
US$44 million or US52¢ per share in fiscal 2014.
Profit before income taxes rang in at US$166
million with earnings per share at US78¢, up from
last year’s comparable figures of US$23 million and
a loss of US27¢ per share. As of Jan. 31, the company
held cash and equivalents of US$458 million, an
increase over the US$289 million reported at the
end of the third quarter.
“We’ve had a good run of late,” Brendan Bell, the
company’s acting CEO, told Diamonds in Canada in
an interview from his office in Yellowknife in April,
adding that the company felt comfortable a regular
annual dividend payment of 40¢ per share was viable.
From leFt: Rough diamonds from Dominion
Diamond’s Ekati mine, in the Northwest Territories;
The Jay project at Ekati.
“No company in this day and age can be blind
to the fact that shareholders need to earn a return,
and we felt, when we looked at our sources and use
of capital, that this dividend was a sustainable and
affordable dividend,” he says.
The company paid a dividend of US20¢ per share
in fiscal 2009, down from US80¢ in 2008, and US$1
per share in fiscal 2007. Dominion, then known as
Aber Diamond, kicked off its dividend policy shortly
after acquiring luxury jeweller and iconic retailer
Harry Winston Diamond. (Aber paid US$266 million for Harry Winston in two transactions in 2004
and 2006.) The company then changed its name to
Dominion Diamond in March 2013.
The new dividend, which equates to a 2.3%
yield, should broaden Dominion’s potential investor
base and keep it competitive with other yielding
diamond producers, such as Lucara Diamond (TSX:
LUC) (2.2% regular dividend, 4.4% with estimated
specials); Petra Diamonds (LSE: PDL) (1.1% yield);
Gem Diamonds (LSE: GEMD) (2.4% yield); and
Alrosa (RTS: ALRS) (2.1%), Matthew O’Keefe of
Dundee Capital Markets commented in a research
15-05-06 2:38 PM
note to clients. “Combined with its strengthened balance sheet and attractive growth profile, Dominion
offers a good combination of growth and income.”
Dominion expects a lot of that growth will come
from the Ekati diamond mine and specifically the
undeveloped Jay pipe, which lies beneath Lac du Sauvage, north of Lac de Gras.
In March, the company released an updated National Instrument 43-101 technical report for Ekati, which
includes the Jay pipe. Jay is situated in the southeastern
corner of the property, about 25 km southeast of the
Ekati main camp and mine infrastructure, and about 7
km north-northeast of the Misery Main pipe.
Jay is the most significant undeveloped deposit at
Ekati due to its large size and high grade and will add
about 11 years of mine life beyond the current projected
closure of Ekati in calendar 2020.
Earlier this year, Dominion upgraded the bulk
of Jay's indicated and inferred resource to probable
reserves, which now measure 45.6 million tonnes at
1.9 carat per tonne for 84.6 million carats.
“Our process plant handles about 4.3 million
tonnes per annum from various different ore sources,
and as Jay comes online, it will fill the mill on its own,”
Bell says. “With the grade at Jay just under 2 carats per
tonne, that gives you a sense of the carat projections.”
Jay prefeasibility
Dominion released results from a prefeasibility study
on Jay in January that evaluated the pipe as a standalone, open-pit operation. The study calculated an
after-tax internal rate of return of 16% and a post-tax
net present value of US$610 million, with total operating costs projected at C$75 per tonne processed.
Initial development costs were tabulated at about
US$657 million, of which about US$368 million will
be spent on building a dyke and associated infrastructure, including roads and pumps.
Bell says the company is on track to complete
a feasibility study on Jay this fall, with engineering work and further optimization studies already
under way.
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Permitting, he says, can be completed in 2016, with construction
starting the same year. Dewatering the area isolated by the dyke
and pre-stripping would then begin in 2019, with mining and
processing starting from 2020.
Bell says he doesn’t foresee any permitting problems, given the
company’s long track record operating Ekati. “We’re into an environmental assessment, which will conclude in early calendar 2016,
at which point the minister will give us a go, or a no-go,” he says.
Based on positive feedback so far, Bell believes the environmental assessment will be approved in early 2016. After that,
a water licence and land-use permits would take four to six
months, with construction starting in the summer or early fall.
“That remains the timetable and we are on track.”
To be sure, he concedes, there are always issues through
permitting, and it’s important to understand the local and aboriginal community in the Northwest Territories is concerned
about any development. “They want to make sure it’s done right,
that any negative impacts on the Caribou, or wildlife, or water,
are mitigated,” he says.
Bell, who notes that Dominion’s relations with communities
are “very strong,” says that concerns about development have to
be balanced with the desire for employment.
FROM EXPLORATION TO CLOSURE.
JUST ASK GOLDER.
“We’re the largest private sector employer of people in this
part of the world, and those jobs come to a halt in 2019 without
Jay, and so people are happy about future employment, but
that has to be balanced with minimization of impacts on the
ecosystem.”
As Dominion plans for Ekati’s future, it has already made
improvements at Ekati’s processing plant that increased the
recovered grade of reserve and resource material by about 15%
during the fiscal year.
“We’ve been very successful this year at being very diligent
and methodical about how we process ore,” Bell says. “We are
changing the screens out more frequently to make sure diamonds
aren’t missed.”
The focus has been on maximum recovery rather than
pushing more tonnage through the mill, he notes.
The company also raised its ownership in Ekati’s Core and
Buffer zones by acquiring the interests of Fipke Holdings Ltd.
For the Core zone, which includes the current operating mine
and other permitted kimberlite pipes, Dominion increased its
ownership by 8.89% to 88.9% for C$55.6 million.
For the Buffer zone, an adjacent area hosting kimberlite pipes
having both development and exploration potential such as Jay
and Lynx, the company spent $14.3 million to raise its stake
by 6.53% to 65.3%.
Diavik
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At the nearby Diavik mine, in which Dominion holds a 40% stake,
mine operator Rio Tinto (NYSE: RIO; LSE: RIO) announced in
November that it has approved the development of the A-21 pipe,
which is expected to enter production in late 2018.
At the end of 2014, Diavik had 18.1 million tonnes of proven
and probable reserves grading 2.9 carats per tonne for 53.3 million
carats of diamonds.
Looking ahead at upcoming capex demands, and with the
new dividend in mind, Bell is the first to admit that the company
has a lot of investment dollars in front of it.
Dominion’s 40% share of development capex for the A-21
pipe at Diavik, for instance, will cost about C$157 million
between calendar 2015-2019.
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From leFt: Brendan Bell, acting Ceo;
Core from the Jay project at ekati;
Drilling at Jay.
At Ekati, the company plans to spend about US$27 million in
fiscal 2016 on exploration at Jay and US$6 million on exploration at the Sable pipe, about 16 km northeast of the Ekati plant.
Also in fiscal 2016, Dominion plans US$70 million (on a
100% basis) in capital spending on the continued development
of the Misery pipe; US$18 million to develop the Pigeon pipe,
and US$16 million on the Lynx pipe.
In fiscal 2017, Dominion expects capital costs to be US$38
million at Misery, and US$22 million at Lynx.
That’s in addition to the roughly C$760 million that will be
needed for development capital for the Jay pipe between fiscal
2016 and 2020.
To help with its financing requirements, the company entered
into a new C$210-million senior secured corporate revolving
credit facility with a bank syndicate in April 2015.
Bell says the company doesn’t plan to raise any more capital
at this point and should be able to fund its commitments with
money coming from Ekati and Diavik.
In Toronto at presstime, Dominion’s shares traded at $22.56
per share within a 52-week range of $12.89-23.00.
BMO Capital Markets has a target price of $27 per share and
describes Dominion as its “top pick in the diamond space,” while
Dundee Capital Markets has a target price of $25.
“I think people are starting to be more familiar and more
aware of our story,” Bell says. “We are a pure play diamond
miner and I don’t have to tell you that many of the other
commodities who would compete for investment are somewhat
unloved these days; not so with diamonds.”
— Trish Saywell is a senior staff writer with The Northern Miner.
This is our
backyard…
Kennady Diamonds - Kennady North Project - Kelvin Kimberlite
35+ years of geological, geophysical and
exploration services in some of the most
remote places on earth.
Go ahead – pick our brains
aurorageosciences.com
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By AlishA
hiyAte
hen Aurora Geosciences was contracted to manage the exploration
program at Kennady Diamonds’
( TSX V: K DI) Kennady North
project in the Northwest Territories in 2012, there
weren’t any clues that the project would turn out to
be as successful — or unusual — as it has.
“I think the only thing we felt is that the Kennady
North project hadn’t been systematically tested,”
said Aurora president Gary Vivian..
The project, revived by Mountain Province
Diamonds (TSX: MPV) in 2011, was originally
part of the AK joint venture with De Beers that
held the Gahcho Kué project (now in construction).
While two diamondiferous kimberlites, Faraday
and Kelvin, had been discovered on the claims in
1999-2000, they were thought to be small “blows”
along a dyke system and therefore of limited
size potential. The project, 280 km northeast of
Yellowknife, hadn’t seen any significant exploration
since 2004.
Aurora started drilling at Kennady Lake in 2012,
but it wasn’t until 2013 that pyroclastic kimberlite
was recovered in drill core.
“All of the previous drilling had suggested that
these were coherent kimberlites, which suggests
they’re hypabyssal or dyke-like bodies,” Vivian said.
“It’s the pyroclastic kimberlite that told us that the
body is probably much bigger than was originally
Kennady Diamonds’
Kennady north project, in
the northwest territories.
Credit: Kennady Diamonds
The Kelvin
kimberlite
complex,
looking
southeast.
Credit: Kennady
Diamonds
thought and would suggest that this thing has actually vented to surface. It opened our eyes to the
possibility that this thing could be much bigger.”
Since then, Aurora has outlined a very unusual kimberlite body at Kelvin. It’s not a dyke, or a
classically carrot-shaped vertical kimberlite pipe,
but a horizontal, boomerang-shaped, pipe-like
body.
“This is a very irregular-shaped type kimberlite complex that hasn’t been recognized before,”
Vivian says. “If you took a vertical pipe like the
most classic kimberlites, and you tip that on its
side, that’s almost exactly what the Kelvin body
looks like.”
The kimberlite is about 600 metres long, between
75 and 200 metres thick (it thickens to the north),
and 30 to 60 metres wide. It’s still open to the
northwest.
15-05-06 2:39 PM
from Left: Kelvin-Faraday map;
Drilling at Kennady North.
Credit: Kennady Diamonds
On its south end, Kelvin surfaces beneath a shallow lake and is connected to
the diamondiferous Kelvin sheet complex,
which averages 8-10 metres thick.
Drilling at Faraday, 3 km northeast of
Kelvin, has also returned pyroclastic kimberlite. There are four targets at Faraday
that may or may not be connected, but so
far the Faraday 2 target has been defined
across a strike length of 130 metres, and
appears to be a pipelike body.
The project also hosts the Doyle and
MZ kimberlites and more than 40 targets.
surface at the bottom of a shallow lake, and
the bottom of the Kelvin body is only 70
metres below surface. Towards the north,
the body starts about 200 metres below
surface and extends to 450 metres depth.
“Three-quarters of the Kelvin pipe
could be taken with a pit that’s about
250-300 metres deep and probably only
300-400 metres across.” Vivian says.
Perhaps the most exciting thing about
Kennady North is that it implies much
more potential to find more unusual
kimberlites with economic potential in
Canada’s North.
“I give Kennady a lot of credit for
recognizing there was still potential left
on the original AK claims,” Vivian said.
“(Kennady CEO) Patrick Evans has proven
that one or two passes don’t necessarily provide you with all the answers. Ideas and
technology change.”
to deliver a parcel of 1,000 carats for an
initial valuation.
Kennady is targeting a 9-12 million
tonne resource grading 2 to 2.5 carats per
tonne.
It also plans to conduct another 20,000
metres of drilling this year.
While the Kelvin kimberlite is unusual, Vivian says it’s amenable to open-pit
mining as it’s neither terribly deep nor
large. At the south end, Kelvin comes to
Maiden resource
Without grade, Kelvin might be little
more than a geological curiosity. However, sample grades to date have been very
promising.
Samples taken from Kelvin in 2013 and
2014 and totalling 53.2 tonnes returned
124.9 carats of commercial-sized diamonds for a sample grade of 2.37 carats
per tonne. A smaller 1-tonne sample from
Faraday returned 4.76 carats of commercial-sized diamonds for a grade of 4.54
carats per tonne.
Early this year, Kennady reported
results from the south lobe of Kelvin and
from the Kelvin sheet: a 1.8-tonne sample
from Kelvin’s south lobe returned 6.68
carats of commercial-sized stones for a
grade of 3.64 carats per tonne, while a 47kg sample from the Kelvin sheet returned
0.28 carats of commercial-sized diamonds
for a grade of 5.95 carats per tonne.
A 436-tonne bulk sample taken by
reverse-circulation drilling from Kelvin
early this year will be used to compile
a maiden resource in the third quarter,
followed by a preliminary economic
assessment. The bulk sample is expected
TSXV:NAR
Exploring Diamond Opportunities
in Canada
[email protected]
Suite 960, 789 West Pender Street
Vancouver, BC V6C 1H2 604.668.8355
@narminerals
northarrowminerals
northarrowminerals.com
May 2015 v
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Around
The laTesT
news from
Canadian-lisTed
diamond plays
Alto VenturesI
In April, Alto Ventures (TSXV: ATV) reported
that 12 of 37 till samples taken at its West Fisher
claims, 12 km northwest of North Arrow Minerals' Pikoo project in Saskatchewan, contained
chromium-rich chromite grains. A subsequent
high-resolution airborne magnetic survey identified 16 magnetic targets, several of them associated with down-ice trends of kimberlite indicator
mineral (KIM) dispersion grains in tills.
Just east of Pikoo, at Alto's GEFA property,
sampling has identified multiple KIM dispersion
trains. An airborne magnetic survey at GEFA
early this year identified at least 16 kimberlite
targets clustered in two areas of the project.
Alto is earning a 100% interest in West Fisher
and 60% of GEFA.
Arctic Star ExplorationI
From top:
At Peregrine Diamond’s Chidliak project. Credit: Peregrine Diamonds
Diamonds from North Arrow Minerals’ Qilalugaq project.
Credit: North Arrow Minerals
Alto Ventures’ crew in Saskatchewan.Credit: Alto Ventures
In February, Arctic Star Exploration (TSXV:
ADD) acquired the1,056-sq.-km Stein project in
Nunavut, drawing on existing exploration data
in the public domain.
Past surveys identified circular magnetic
anomalies up to 200 metres in diameter at
the up-ice terminus of KIM trains. Arctic Star
is planning a work program this spring in anticipation of drilling the targets.
In January, the company staked the Triceratops property, adjacent to the Ekati mine in
the Northwest Territories. The project contains
six kimberlites with low diamond counts, as
well as three unexplained KIM trains and other
complex trains that may indicate further
potential. Arctic Star plans to generate new drill
14-24_Roundup.indd 14
15-05-06 2:52 PM
t
d
the world
targets at Triceratops using modern exploration methods.
And in November, the company acquired the T-Rex property
in the Lac de Gras field. T-Rex holds 13 known kimberlites, but
the property has not seen modern exploration and Arctic Star
notes that non-magnetic kimberlites may have been overlooked.
Canterra MineralsI
In January, Canterra Minerals (TSXV: CTM) added the
Rex project, adjacent to Kennady Diamonds’ land package in
the Northwest Territories, to its portfolio. The claims were
acquired based on a review of public data and on reconnaissance
sampling last year. The property contains several KIM anomalies
that contain G9 and G10 garnets and two KIM trains.
At Canterra's Marlin project, where Margaret Lake
Diamonds (TSXV: DIA) is earning up to a 49% interest, 126
till samples were collected last year. The samples returned a
1-mm by 1-mm by 1.4-mm off-white modified octahedral
diamond.
Canterra recently identified several kimberlite targets
coincident with KIM anomalies at Marlin, after flying a
1,500-line km airborne gravity and magnetic survey over the
north part of Marlin last year.
Chalice Gold MinesI
Chalice Gold Mines (TSX: CXN; ASX: CHN) has an indirect
stake in Meteoric Resources' (ASX: MEI) Webb Diamond
project in Western Australia.
Meteroic has discovered 51 kimberlites containing both hypabyssal and diatreme facies after drilling 63 targets at Webb.
While microdiamonds were not recovered from the drill
core, microdiamonds have been recovered in the northern part
of the kimberlite field in surface loam sampling.
Less than 20% of the targets at Webb have been tested.
Chalice owns 24% of GeoCrystal, a company that has a
70% interest in Webb. The company could own up to 51% of
GeoCrystal, if it exercises its warrants in the company and
participates in future financings.
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Diamcor MiningI
Diamcor Mining (DMI: TSXV) raised $3.1 million in a private
placement in December to help advance its Krone-Endora
alluvial deposit in South Africa.
The junior's in-field dry screening plant has proven effective
at removing fine material under 1 mm, and now the company is
ready to upgrade its infrastructure in order to treat large material in the +26 mm size fractions, which it has been stockpiling.
Plant upgrades are expected to be complete by mid-year.
To facilitate the investment, Tiffany & Co., which has a
right of first refusal on Krone-Endora diamonds other than specials, has agreed to a one-year deferral and loan extensions of
principal and interest payments accruing after December 2014.
Diamcor sold 3,579 carats of diamonds in the quarter ended
Dec. 31 for revenues of $886,840, net of commissions and fees,
for an average price of US$221.96 per carat. The company realized a net loss of US$651,720 or 1¢ per share for the period.
In its fourth quarter ended March 31, Diamcor sold 4,619.11
carats of diamonds for an average of US$182.38 per carat.
Processing was suspended in early March to complete work
on the plant.
GGL ResourcesI
GGL Resources (TSXV: GGL) reported in December that its
1995 Doyle joint venture with De Beers has been terminated.
The junior will get De Beers’ 60% interest in certain JV claims
in return for relinquishing its 40% of other claims. De Beers
will also pay GGL $300,000.
Lucara DiamondI
As of late April, Lucara Diamond (TSX: LUC) had finished
construction of a US$55-million plant upgrade at its Karowe
mine in Botswana, and commissioning had begun. The company installed new XRT diamond recovery machines and a
large diamond recovery circuit to help process the fresher,
harder kimberlite in Karowe’s south lobe and improve recovery
of large diamonds, for which the mine is known.
For 2014, Lucara reported revenues of US$265.5 million,
an increase of 47% from the previous year due to higher prices
and more diamonds being sold in exceptional tenders, which
accounted for half of total revenues. Lucara reported adjusted
net income of US$90.8 million, with adjusted earnings per
share of US24¢, up from US17¢ in 2013.
Lucara ended the year with $101 million in cash. The company received an average of US$644 per carat sold, up from
US$411 per carat the previous year.
For 2015, the company expects to bring in US$230-240
million from the sale of 400,000 to 420,000 carats of diamonds,
with operating costs of US$33-36 per tonne of treated ore.
At presstime, Lucara had agreed to sell its Mothae project,
in Lesotho, for US$8.5 million and a 5% interest in initial
profits from production.
Margaret Lake DiamondsI
In April, Margaret Lake Diamonds (TSXV: DIA) reported
that 12 high-priority drill targets have been identified at its
60%-owned Margaret Lake property adjacent to Kennady
North. A total of 60 anomalies were identified following an
airborne gravity gradiometry survey conducted late last year.
The company can earn up to 70% of the project.
(See also the Canterra Minerals entry.)
Metalex VenturesI
Metalex Ventures (TSXV: MTX) is searching for alternative
sources of financing for a bulk sample and potential development of the U2 kimberlite in northern Ontario. Last summer,
Dundee Corp. (TSX: DC.A) terminated its agreement with
Metalex to fund up to $51 million in costs to bring the U2 and
T1 kimberlites to feasibility, citing delays in permitting and in
negotiating exploration agreements with local First Nations.
Mountain Province DiamondsI
Mountain Province Diamonds (TSX: MPV; NASDAQ: MDM)
15-05-06 2:53 PM
leFt to right:
Diamcor Mining’s dry screening plant at Krone-Endora.
Credit: Diamcor Mining
De Beers and Mountain Province Diamonds’ Gahcho Kué project.
Credit: Mountain Province Diamonds
Lucara Diamond’s Karowe mine.
is now fully covered for its share of the $858-million capital
cost of Gahcho Kué, its 49%-owned joint venture with De
Beers (51%). The company closed a US$370-million term loan
facility in April, after closing a $95-million rights offering in
March. First production is expected in the second half of 2016.
In March, the partners announced that they collected 434
kg of Tuzo kimberlite with five holes in their 2014 Tuzo Deep
drill program. The program confirmed that Tuzo continues to
more than 740 metres depth and returned 2,514 diamonds,
including 2.46 carats of commercial-size diamonds for a grade
of 5.67 carats per tonne. Further deep drilling at Tuzo will wait
until construction at Gahcho Kué is complete.
The project is expected to produce an average of 4.5 million
carats per year over a 12-year mine life.
In December, the partners signed impact benefit agreements with both the NWT Métis Nation and the Deninu Kué
First Nation.
in larger sizes, and to collect enough diamonds for an initial
valuation, which is forthcoming.
Yellow diamonds account for 9% of the stones by stone
count and 21.5% by weight and increase in stone count and
weight in the larger sizes.
Moreover, an analysis of 41 Q1-4 representative diamonds
showed that 40 contained unaggregated nitrogen, a characteristic of rare natural Type 1b diamonds with fancy “Canary
yellow” colours, the company reported in April.
North Arrow is earning 80% of Qilalugaq from Stornoway
Diamond.
At its 80%-owned Pikoo JV with Stornoway in Saskatchewan, North Arrow discovered three new kimberlites early
this year with a 24-hole, 3,240-metre drill program.
The most significant kimberlite, PK314, is located in
the North Pikoo area and has been drilled to 213 metres
depth. PK314 appears to be an east-west trending, vertically
North Arrow MineralsI
At presstime, North Arrow Minerals
(TSXV: NAR) reported that 11,083 diamonds greater than 1 mm have been recovered from a 1,353-tonne bulk sample from
the Q1-4 kimberlite at the Qilalugaq project in Nunavut. The stones weigh 384.28
carats, giving a sample grade of 28.4 carats
per hundred tonnes.
Fifteen diamonds were larger than 1 carat,
including a 4.42-carat greenish-yellow cubic aggregate; a 4.16-carat intense yellow
cubic aggregate, and a 3.53-carat pale yellow cubic aggregate.
The sample is lower-grade than the
existing inferred resource for Q1-4 (48.8
million tonnes grading 54 carats per hundred tonnes), however, the company noted
it was not taken to confirm the grade, but
to confirm the presence of yellow diamonds
May 2015 v
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emplaced diatreme-like body that is 25 metres wide and at least
40 metres long.
The diamondiferous PK150 kimberlite, discovered in 2013
at Pikoo, has been drilled to 199 metres depth and over 150
metres of strike.
Pangolin DiamondsI
Four white diamonds have now been recovered in soil samples at
Pangolin Diamonds’ (TSXV: PAN) Malatswae project, 90 km
southeast of the Orapa mine in Botswana.
Last year, three diamonds were found in a 1 sq.-km area:
including a 1.5-mm by 1.13-mm by 1.38-mm stone. The diamonds’
characteristics suggest a nearby source.
A fourth diamond, a 0.02-carat octahedron, was discovered
13 km to the northwest in January.
Pangolin plans further exploration in the two areas (MSC
and Modala Grids) the diamonds were found. The company has
also added three new prospecting licences at Malatswae, which
now totals 2,480 sq. km.
In September, Pangolin announced drilling at the Magi
target at its Tsabong North project in Botswana recovered four
diamonds. A May 2014 hole returned three diamonds.
-125°
-120°
70°
-130°
100
200
in
Bas ary
nd
Bou
Kilometres
70°
0
Proterozoic
Cretaceous
Basin
SEARCH FOR
Arctic
Ocean
68°
Unglaciated
Melville Hills
Paleozoic
68°
Lena
West
Talmora
LENA WEST DIAMONDS
Great Bear
Lake
-130°
-125°
-120°
CSE : TAI
Shares outstanding: 61,998,801
Contact: Raymond Davies Phone: 416 491 6771
Email: [email protected]
Website: www.talmoradiamond.com
66°
Cretaceous
Basin
B
Bo asin
un
da
ry
66°
Proterozoic
Pangolin
Diamonds
sampling crew
in Botswana.
Credit: Pangolin
Diamonds
Peregrine Diamondsi
Early this year, Peregrine Diamonds (TSX: PGD) completed
a reorganization, putting all of its properties other than its
advanced Chidliak project into a wholly owned subsidiary.
Former president Brooke Clements is now president and CEO
of Peregrine Exploration.
At Peregrine Diamonds, former VP Tom Peregoodoff is now
president and CEO; Chidliak program manager Herman Grutter, is now vice-president of technical services; and former CEO
Eric Friedland is now executive chairman of both companies.
In May, Peregrine reported it is acquiring private Botswana
diamond explorer Diamexstrat Botswana (DES Botswana) from
Diamond Exploration Strategies Ltd. in return for a 1% gross
overriding royalty, and for the assumption of a $450,000 loan.
(The loan is owed to DES UK, but was originally advanced by
Peregrine).
DES Botswana holds eight prospective licences in Botswana
totalling 5,746 sq. km that were acquired after reviewing 25
years’ worth of public data. The licences are situated in two areas
along the Cretaceous kimberlite corridor, and in three areas that
have unresolved geophysical and KIM anomalies.
Through a service agreement, DES UK will continue to
manage any work programs at the projects.
At Chidliak, in Nunavut, Peregrine is preparing for a preliminary economic assessment in 2016.
An updated resource at the CH-6 kimberlite added 15% in
terms of tonnage in January. The updated inferred resource is
3.3 million tonnes grading 2.58 carats per tonne for 8.57 million
carats in the first 250 metres of CH-6.
The junior also increased conceptual tonnage estimates for
other areas of CH-6 below 250 metres, and for the CH-7 and
CH-44 kimberlites to a total of between 8.2 and 13.6 million
tonnes.
Bulk sampling of key kimberlites began in March. The company plans to collect 1,000 tonnes in total from CH-6, CH-7 and
CH-44 to add resources and to collect diamonds for valuation
from CH-7 and CH-44.
A valuation of CH-6 diamonds last year gave an average price
of US$213 per carat.
Recent drill results from CH-7 indicated a geologic domain in
the kimberlite that could be higher grade than CH-6.
15-05-06 2:53 PM
Of 30 samples taken in the Northern area of the project, only
seven returned mantle-derived KIM grains.
Shore GoldI
Shore Gold’s Star-Orion
South project.
Credit: Shore Gold
Rockwell Diamonds
Rockwell Diamonds (RDI: TSX; RDI: JSE) plans to complete
its acquisition of the Remhoogte/Holsloot and Bo-Karoo alluvial
diamond projects by mid-year. Rockwell will pay $25.8 million
for the early stage projects, which are located beside its current
alluvial projects in the Middle Orange River (MOR) area of
South Africa.
The projects come with three processing plants that can treat
200,000 cubic metres per month, and have produced more than
7,300 carats of high-quality stones in the last nine months of 2014.
The company expects the acquisition will allow it to grow
production to over 500,000 cubic metres a month, a rate that
would help smooth out its quarterly production.
For the quarter ended Feb. 28, Rockwell sold US$10.6 million
worth of diamonds from its MOR operations, with an average price of US$2,461 per carat influenced by the sale of two
120-carat-plus Saxendrift stones.
Rockwell has suspended operations at its subeconomic
Niewejaarskraal project at MOR to focus on increasing throughput
and better understanding the orebody.
The company sold its Tirisano project in South Africa for
$6.3 million in cash in March.
Aiming to increase resources, reduce the $1.9-billion preproduction capital cost, and reduce the time to production at its
Star-Orion South project in Saskatchewan, Shore Gold (TSX:
SGF) is working to revise its mine plan.
The company wants to mine the Orion South kimberlite —
which is both higher grade and has 30 metres less overburden
than the Star kimberlite — first, reversing the order of the
current plan.
To do so, Shore plans to re-estimate the Orion South resource
and then re-optimize the open pit using updated resources and
diamond prices. The company began a 12-hole, 2,600-metre,
large-diameter infill drill program at Orion South in late April.
The budget for the drill program and resource estimate is
$5.5 million.
Star is 100% owned by Shore, while Orion South is part of
the Fort à la Corne joint venture with Newmont Mining (32%),
in which Shore has a 68% interest.
Continued on page 22
Strike DiamondI
In March, Strike Diamond (TSXV: SRK) announced results of a
fall 2014 till sampling program at its Sask Craton North project,
in Saskatchewan.
The regional sampling program identified four potential
KIM trains, however, infill sampling is needed to better assess
the property.
Strike sampled selective areas of Sask Craton adjacent to the
Pikoo project and Alto Ventures’ GEFA and Fisher properties.
Two of the potential KIM trains are in the eastern area of Sask
Craton North. The site, which also returned a G9 garnet and
other indicator minerals, is 8 km down-ice from a cluster of
small, subtle magnetic anomalies, and 5 km up-ice of a potential
KIM train identified by Alto.
The Southern area of the project, where 17 till samples were
collected, contains two potential KIM trains. One sample site contained over 55 KIMs; the company believes the source is nearby.
May 2015 v
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Diamond
producers’
association
on the
horizon
By AlishA
hiyAte
M
ore than a decade after De Beers
relinquished control of the diamond
sector, the major diamond miners
are looking at forming a new industry association to co-operate on common issues,
such as generic marketing of diamonds, undisclosed
synthetics, and industry research.
Bloomberg reported in February that eight producers had a confidential meeting, organized by Rio
Tinto (NYSE: RIO; LSE: RIO) and Alrosa (RTS:
ALRS), to discuss the topic. The meeting, which
took place at Rio Tinto's London headquarters, al
so included De Beers, Dominion Diamond (TSX:
DDC; NYSE: DDC), Lukoil (RTS: LKOH), Petra
Diamonds (LSE: PDL), GEM Diamonds (LSE:
GEMD) and Lucara Diamond (TSX: LUC).
“What they’re trying to create, the industry
should have done a long, long time ago — the same
as the platinum guild and the gold bourse and
everything else,” says William Lamb, president and
Polished diamonds from
Rio Tinto’s Argyle mine
in Australia.
Credit: Rio Tinto
CEO of Lucara Diamond, who attended the meeting. “It’s a forum I think for discussion of where the
industry is going as a whole.”
While he could not talk specifically about what
happened at the meeting, Lamb agreed to discuss
some of his views on a potential association and
some of the issues a producers’ group could address.
Lamb sees the association as a chance to shed
light on the sometimes mysterious workings of the
diamond sector: “I think the primary goal of the
association has to be to enhance transparency of
the industry as a whole.”
Details of the meeting were not disclosed, but
participants did confirm that marketing, undisclosed synthetic diamonds, and industry research
were discussed. In an email to Bloomberg, Rio Tinto
explained that the producers discussed the need for
an association, which would promote the interest
of diamond producers and the sector in general.
In response to a request for comment, a Domin-
15-05-06 2:53 PM
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A 342-carat, Type IIa gem
from Lucara Diamond’s
Karowe mine in Botswana.
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expected to decline after 2020, diamond miners can't take
demand for granted.
“De Beers' Diamond Insight Report last year showed that
growth in demand for luxury jewelry was well below that of
electronic gadgets, fine wines, accessories etc., in the period
2004-2013.” Kilalea noted.
Advertising spending on diamond jewelry has fallen over
the past decade relative to other luxury categories. Meanwhile,
demand for luxury jewelry in the U.S. grew at just over 2%
between 2004-2013 while demand for high-end, high-tech
gadgets grew at 14% a year.
Also consuming a lot of consumers’ discretionary spending
— at the expense of luxury items such as jewelry and designer
handbags — is travel, says Lucara’s Lamb.
As opposed to cruise, vacation and other travel companies,
which spend a vast amount of money on advertising, there is
really no generic marketing for diamond jewelry. An association
could help with a coordinated strategy to nurture demand —
especially with younger consumers who are less enamoured
with diamonds than previous generations.
Before De Beers launched its supplier of choice strategy
in 2000, the diamond giant spent $150-200 million a year on
I think the primary goal of the association has to be
to enhance transparency of the industry a whole.
— William Lamb, president and CEO of Lucara Diamond
ion Diamond spokesperson in April said the discussions were
still early stage and no agreements have yet been reached.
“Preliminary discussions have been held between a number
of producers to explore the potential remit and scope of an
industry association for diamonds that would seek to better
understand, address and protect the needs of diamond consumers,” the spokesperson said in an email.
The major players have talked about forming such an association before. Whether or not the idea sticks this time around, it's
clear that some collective action on the part of the producers
could benefit the industry.
“An industry association makes sense to tackle synthetics,”
said Des Kilalea, a mining analyst with RBC Capital Markets.
“The association might also look at the benefits of some
generic advertising to boost diamond jewelry's share of luxury
spending,” he added.
Competition from other luxury products was one of several
big challenges facing the diamond industry that De Beers outlined in its inaugural Diamond Insight Report last year.
While demand for diamonds is growing and supply is
”
advertising and marketing — much of that generic. It's now
spending about $100 million on branded advertising for its
Forevermark brand.
Synthetics
In the past few years, there have been increased reports of
synthetic diamonds being mixed in with natural diamonds in
an attempt to pass them off as natural, another issue that the
diamond miners discussed.
However, Lamb says the industry is generally on top of the
synthetics issue.
De Beers has developed technology to detect synthetics,
which it has shared with the wider industry. Machines that
can detect synthetics can be easily bought for anywhere from
$2,000 to $30,000, and qualified jewellers will have their own
machines.
In addition, synthetic production is a tiny proportion of
mined production — around 50,000-70,000 carats compared
to 130 million carats a year, Lamb says.
“It's a very small percentage when you compare the two,
May 2015 v
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Continued from page 19
The Star-Orion environmental assessment was approved
by the federal government in December. The company is
awaiting provincial approval.
Stornoway DiamondI
Rough diamonds from Rio Tinto’s 60%-owned Diavik mine, in the
Northwest Territories.
Credit: Rio Tinto
which is actually creating a massive issue — and it's not the
fact that it’s undisclosed, it’s what it does to consumer confidence, in my opinion.”
Still, more could be done to weed out undisclosed synthetics and to reassure consumers that their jewelry is authentic.
Lamb adds that the liquidity problems in the diamond sector at the end of 2014 were because of undisclosed synthetics
— not to the Antwerp Diamond Bank's September announcement that it was withdrawing from the sector.
Because of the fear of undisclosed diamonds, lenders insisted on GIA certificates for diamonds as small as 0.2 carat
— creating a backlog of up to six months.
“If you look at how people finance diamonds, the bank will
not give a diamantaire money based on the fact that he’s got
polished stones,” Lamb explained. “They will loan him money
on a receivables invoice — so he actually has to demonstrate
that he sold those diamonds. But you can’t sell the diamonds
if they’re all sitting at GIA.”
Investment diamonds
A producers' association would also conduct industry research, and Lamb suggests it could even help develop new
markets for diamonds, such as investment.
“Up to forty per cent of gold which is produced ends up in
an investment portfolio,” he said. “And yet less than five per
cent of diamonds plus 10.8 carats ends up in a portfolio — so
less than 1% of production ends up as investment quality
stones. There is definitely an opportunity there where we can
move more product into the market as investment quality.”
Lucara is particularly interested in this market because its
Karowe mine in Botswana accounts for 40% of all stones over
100 carats mined each year while producing only 0.4% of the
world’s diamonds.
A Renard Diamond.
Credit: Stornoway Diamonds
Construction at Stornoway Diamond’s (TSX: SWY) Renard
project in Quebec is on track,
with first concrete poured for
the processing plant in April.
Plant commissioning is
slated for late 2016, with commercial production following
in the second quarter of 2017.
Stornoway is also working
on an updated resource for its
Renard 2 kimberlite, due out in June. The company completed
12,010 metres of drilling in November, focused on adding
resources from 600 metres depth and 1,000 metres depth,
where Renard 2 remains open.
A preliminary geological model suggests that Renard 2
holds 9 to 12 million tonnes between 600 metres and 1,000
metres depth.
March was an eventful month for Stornoway: the company
started prestripping activities at Renard 2 and Renard 3 and
also officially opened its Clarence and Abel Swallow airport.
It also completed the drawdown of its first US$80-million
tranche of US$250 million in diamond stream funding.
Lastly, Stornoway president and CEO Matt Manson received the Viola R. MacMillan award for company or mine development for his success leading the development of Renard.
True North GemsI
In February, True North Gems (TSXV: TGX) announced the
results of an updated prefeasibility study for the Aappaluttoq
ruby and pink sapphire project in Greenland.
The study pegged total project capex at US$25 million,
and the project’s post-tax net present value at US$171 million
at an 8% discount rate. The post-tax internal rate of return
was pegged at 122%.
True North is building the project with partner LNS
Greenland, which will own 27% of Aappaluttoq once it
begins production.
advertiser’s index
Aurora Geosciences Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Dominion Diamond Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Golder Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Kennady Diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Mountain Province Diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
North Arrow Minerals Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Peregrine Diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Saskatchewan Research Council. . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Shore Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Stornoway Diamond Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Talmora Diamond Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Tundra Airborne Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
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15-05-06 2:53 PM

The Northern Miner: Diamonds in Canada

Transcription

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