Doug Ashbury
Northern News Services

NNSL (Sep 29/99) - An MRDI Canada study suggests Winspear Resources' Snap Lake project can support underground mining of diamond-bearing kimberlite, Winspear said in a release.

MRDI, a division of engineering firm H.A. Simons, has recommended that after completion of an underground development program, a feasibility study be done on mining and processing 3,000 tonnes of kimberlite per day.

The Snap Lake project, on which Winspear (WSP-V) is the operator, is located 240 kilometres northeast of Yellowknife.

MRDI's scoping study proposes that, upon receiving all permits, production would begin with open pit mining of 1,000 tonnes per day for about two years. Underground mining would begin during open-pit activity.

Underground mining would reach 3,000 tonnes per day in year four of production.

The scoping study suggests mine life may be extended "well beyond" the estimated 10 years.

MRDI's scoping study incorporates average value of diamonds recovered from the site's pits three and four. Some 10,708 carats were recovered from 5,995.7 dry tonnes of kimberlite. Average value of the diamonds was $153.94 per carat ($104.96 US).

Winspear, as operator of the Camsell Lake project, has submitted an application for a class B water licence to support the coming year's advanced exploration program which would involve mining 20,000 tonnes of kimberlite. The kimberlite would be processed at a plant built at the site as well as a camp and a 900-metre runway. Results would be available in 2000.

Winspear anticipates an environmental impact assessment report early next year with a project description covering the proposed open pit and underground mining that will be submitted to regulatory authorities later in 2000.

Winspear also said the Snap Lake timeline is an "aggressive" one and that conversion of exploration results to resource estimates is expected soon.