Contact hunts for viable mine.
There is a bit of a staking rush in the Timiskaming-Cobalt area as juniors and larger mining houses scout for viable kimberlite kimberlite: see diamond.
or blue ground
Dark, heavy, often fragmented igneous rock that may contain diamonds in the rock matrix. pipes.
The story of diamond exploration in Kirkland Lake Kirkland Lake, mining town, E Ont., Canada. An important gold-mining center, gold was discovered there in 1911 and again in the 1980s at Harker. The mining of iron ore and tourism are two other important industries. and Timiskaming has been around since De Beers and others began prospecting in the 1980s. Until Contact Diamond Corp.'s recent discovery of Pipe 95-2, which hosts 15 carats per 100 tonnes, the diamond potential was thought to be quite low.
Kimberlites are expressions of deep-rooted volcanic activity that starts way down in the mantle of the Earth. They punch through the Earth's surface Noun 1. Earth's surface - the outermost level of the land or sea; "earthquakes originate far below the surface"; "three quarters of the Earth's surface is covered by water"
surface violently like shotgun blasts.
In the northeast, these kimberlites form in small clusters following an imaginary line In general, an imaginary line is any sort of line that has only an abstract definition, and does not exist in fact.
As a geographical concept, an imaginary line may serve as an arbitrary division (such as a border). from Attawapiskat on the James Bay James Bay, shallow southern arm of Hudson Bay, c.300 mi (480 km) long and 140 mi (230 km) wide, E central Canada, in Nunavut Territory between Ont. and Que. Numerous rivers flow into the bay; many of these have been developed for hydroelectric power in Quebec (see Coast down through Kirkland Lake, Cobalt and extends down to southern Ontario, through to New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of .
The Lake Timiskaming Lake Timiskaming (French: Lac Témiscamingue) is a large freshwater lake on the provincial border between Ontario and Quebec, Canada. Structural zone, which includes the Cobalt area, is part of a larger, more recognizable northwest-southeast geological belt of faults called the Superior craton.
Contact Diamond has a diamond project near the Ontario-Quebec border near the community of Temiskaming Shores. Eight kimberlite pipes have been discovered since 1995, six of which have proven to be diamondiferous. In 2003 and 2004, the company undertook a mini-bulk sample program and came up with commercial diamonds at marginally sub-economic grades (Pipe 95-2).
"It is almost economical given the cost of mining," Mathew Manson president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Contact Diamond says.
He spent eight years with Aber Diamond Corp. examining Diavik diamonds in the Northwest Territories.
"They are as good as anything coming out of the Northwest Territories."
The company has approved a budget of $2 million for exploration in 2006. They have expanded their land position to over 113,000 hectares of staked claims. An estimated 49,000 hectares includes the Elk Lake area, along with optional claims and mining patents covering nine geophysical targets. The 2006 program entails till sampling, airborne geophysics, drill testing and more exploration around the Lundy and Klock properties, where studies indicate the potential presence of more kimberlites.
"We think there are about five or six to be found and that is based on data showing indicator minerals that are unexplained by any kimberlites discovered."
The job is to find more kimberlite through critical mass to make the low-grade diamonds economical or alternatively, find something slightly better than Pipe 95-2.
Diamond supply is limited since no new mines have opened for over a decade.
By mapping out the predicted growth of the world economies and marrying it with the stable diamond habits, there is an expected shortfall, Manson says.
"That shortfall will be met with diamond prices going up."
If experts are correct, the 95-2 pipe could become economical in the next 10 years, when the price of diamonds is expected to increase an average of two or three per cent annually.
By KELLY LOUISEIZE
Northern Ontario Business Northern Ontario Business is a Canadian magazine, which publishes monthly in Greater Sudbury, Ontario. The magazine covers business news and issues in Northern Ontario.