Diamond exploration--new piping hot gems found in northeast.

The opening of Ontario's first diamond mine in March, will put gems back on the front page, ahead of surging metal prices.

De Beers Canada is investigating the economics of other kimberlite pipes in the Victor mine vicinity that may push diamond production beyond the 12-year life.

The Ontario Geological Survey has documented 29 kimberlites in the James Bay Lowlands, 17 belonging to De Beers. Nineteen of them contain diamonds.

The company was the first explorers into the area, 90 kilometres west of the community of Attawapiskat, discovering the first kimberlite pipe in 1997.

Kimberlite is a host rock for diamonds, which are brought nearer to the surface by old volcanic pipes. The pipes typically occur in clusters.

Discovering a kimberlite doesn't necessarily mean it will bear diamonds, says Gary Grabowski, a Kirkland Lake-based district geologist for the Ontario Geological Survey (OGS).

In recent years, juniors have been staking and drilling near James Bay Victor kimberlite pipe, and southeast to the Kirkland Lake and Temiskaming areas of northeastern Ontario, particularly south of Lake Abitibi, straddling the Quebec border.

OGS has recorded occurrences kimberlite and diamond-bearing rocks in the Kirkland Lake-New Liskeard area since the mid-1990s. The number of diamonds and size of samples recovered are hit-and-miss information because of the secretive nature of the industry.

The most well-known kimberlite is the Lapointe, northwest of Temiskaming Shores where Tres-Or Resources and Arctic Star Diamond are drilling a pilot hole in preparation to eventually extract a 50 tonne mini-bulk sample to test for large diamonds.

So far, they've recovered 31 mostly microdiamonds.

Other companies including Stornoway Diamond Corp., the former Sudbury Contact Diamonds, hold more than 280,000 acres of exploration licences in their Timiskaming Diamond Project in both northeastern Ontario and western Quebec.

Their 95-2 pipe, found in 1995, on the Ontario side of Lake Temiskaming yielded a population of highly commercial diamonds that is close to being economic, says Grabowski.

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Temex Resources Corp. is doing active fieldwork on its Wilson Lake and Latchford Diamond projects this year including processing almost 200 till samples. The company has conducted ground magnetic surveys and 3D modelling over its KRVY kimberlite target to guide their drilling.

Golden Chalice Diamond Corp., Klondike Gold Corp. and Amador Gold Corp. have announced the recovery of 35 diamonds from an 8.4 kilogram conglomerate on their Corbiere Township property. Five of the diamonds are macrodiamonds.

Diamond exploration in the Lake Temiskaming has been going on since the late 1960s and early 1970s. It's only in the last 15 years most of the known kimberlite pipes have been discovered.

In 1968, the Geological Survey of Canada began reconnaissance work in the area between Lake Abitibi and Englehart sampling many of the glacial eskers (ridges of gravels left behind by glacial runoff) in the area.

It was only in the early 1980s when De Beers and other companies found eight kimberlites north of the mine and Esker Lake Provincial Park did prospectors find the area to be diamondiferous.

Juniors such as Pele Mountain Resources, Spider Resources, KWG Resources, Golden Chalice and West Timmins have staked and taken bulk samples in the area and found macro and microdiamonds.

Pele Mountain has recovered 34 diamonds, Spider-KWG have shown 2,592.

www.mndm.gov.on.ca/mndm/mines

Ontario Geological Survey

QUICK FACTS

Areas of exploration: James Bay

Lowlands, Kirkland Lake-New Liskeard, Wawa

Date of earliest diamond occurrence: 1983 (Monopros Ltd., New Liskeard)

Source: Ontario Geological Survey

By IAN ROSS

Northern Ontario Business