Full size / The largest stone found at the Diavik Mine is a 187.7 carat gem quality diamond called the Diavik Foxfire. Diavik is estimated to run out of feedstock in approximately 3 years, unless additional significant new feedstock can be discovered nearby. Margaret Lake has started exploration at Diagras, a former De Beers Canada property in close proximity to Diavik.
While shareholders eagerly await the first round of assays from the ongoing drilling program on its namesake property in the Northwest Territories, Margaret Lake Diamonds Inc. today announced that exploration has also started at its Diagras Property located in the stronghold of Canada‘s diamond industry: The Lac de Gras Kimberlite Field.
Diagras is immediately adjacent to the productive Diavik and Ekati Diamond Mines operated by Rio Tinto and Dominion Diamond Mines. The large Diagras Property (18,699 hectares) lies directly on trend with the world-class Diavik Mine. Diagras is a joint venture with Arctic Star Exploration Corp. (40%), with Margaret Lake Diamonds (60%) acting as the operator.
What makes Diagras so attractive is that it contains 12 known kimberlites which were originally discovered by DeBeers in the 1990s.
Detailed, modern ground geophysical techniques are being employed now to define possible additional kimberlite(s) or kimberlite phases missed by previous explorer De Beers Canada, who did not utilize all these techniques.
This exploration approach has been successful elsewhere and recent examples include the discoveries of additional diamondiferous kimberlite at the Kelvin and Faraday Kimberlite Complex (located a few kilometres from Margaret Lake‘s current drill program).
A second example that further validates the exploration premise is the Tli-Kwi-Cho DO 27, DO18 Kimberlite Complex, also located in the Lac de Gras Diamond Field. It comprises multiple eruptive/intrusive events of kimberlite, each of a different style and with different geophysical expressions (Mag only, Mag and EM, Gravity, EM and Gravity).
With exploration ongoing at both of its properties, Margaret Lake is looking to strike it big over the next weeks and months, discovering new diamond deposits in the heartland of Canada‘s diamond powerhouse.
Kimberlite pipes typically occur in clusters; as such there exists potential to discover more diamondiferous pipes in proximity to existing diamond mines, especially with modern exploration methods.
The joint venture between Margaret Lake and Arctic Star was also successful using this strategy during the spring 2017 exploration program. This work revealed gravity and EM anomalies proximal to known magnetic kimberlites that constitute compelling drill targets.
A ground geophysical program at Diagras was implemented in spring 2017. Field crews completed ground magnetic, ground gravity and ground electromagnetic (EM) surveys on 11 target areas. The comprehensive survey program (see table) was designed to further evaluate areas near known kimberlites as well as explore new target areas that were generated from public domain data.
At the Jack Pine Kimberlite, which is one of the largest kimberlite complexes in the Lac de Gras Diamond Field (over 1.5 km in its longest dimension), the geophysical methods (ground gravity, EM and magnetics) highlighted obvious magnetic kimberlite phases drilled by previous explorer De Beers Canada, while also successfully defining a new kimberlite-like geophysical expression. This area remains to be drill tested. Previous drilling elsewhere in the Jack Pine Kimberlite Complex has demonstrated it is diamond-bearing.
Targets of great interest were also generated in 2017 at the Black Spruce Kimberlite. A series of gravity lows occur adjacent to the south of the known magnetic phase of the kimberlite. One of these gravity anomalies clearly breaks and disturbs a diabase dyke, a characteristic similar to known Lac de Gras kimberlites.
The next phase of evaluation at Diagras calls for expanded ground geophysical programs to cover areas proximal to other known, previously defined kimberlites in order to expand the number of drill ready targets.
The exploration program at Diagras will consist of Gravity, Magnetic and Electromagnetic (EM) ground surveys focused around historically identified kimberlites as well as other airborne geophysical anomalies with kimberlite-like signatures. This ground work will provide detailed data for further analysis and interpretation to identify additional kimberlite potential and targets, whereafter Rockstone expects an aggressive drill program to immediately follow up on the most attractive targets. All necessary regulatory approval has already been received to proceed with a future drill program at Diagras.
Report #2 “Drilling Into A Diamond Hot Spot“
Report #1 “Glittering Exploration Opportunities Next to Canada‘s Diamond Mines“
Margaret Lake Diamonds Inc.
#2050 - 1055 West Georgia Street
Vancouver, BC, Canada V6E 3P3
Phone: +1 604 630 2810
Shares Issued & Outstanding: 50,407,279
Canadian Symbol (TSX.V): DIA
Current Price: $0.11 CAD (05/29/2018)
Market Capitalization: $6 Million CAD
German Symbol / WKN (Frankfurt): M85 / A2ARXY
Current Price: €0.071 EUR (05/29/2018)
Market Capitalization: €4 Million EUR
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Margaret Lake Diamonds Inc.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Margaret Lake Diamonds Inc.´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in Margaret Lake Diamonds Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Margaret Lake Diamonds Inc.