 | E-mail this story |  | Write letter to editor |  | Order a classified ad |
| E-mail this story | | Write letter to editor | | Order a classified ad |
 David Smith (left) is the prospector who staked claims on the properties. On the right is Denis Hayes, underwriter for both the New Shoshoni and Snowfield Development Corp. projects. In the middle is geologist Bill Timmins. - photo courtesy of New Shoshoni Ventures Ltd. |
Jennifer McPhee
Northern News Services
The company expects to find at least 25 diamond-bearing kimberlite pipes on the property which is approximately 50 kilometres southeast of Yellowknife.
Another company, New Shoshoni Ventures Ltd, is also drilling for diamonds in the area. Prospector David Smith -- involved in both projects -- discovered a kimberlite pipe in 1994 on the property New Shoshoni has now optioned.
Ninety-seven diamonds turned up in a small sample of material removed from this pipe -- the largest kimberlite pipe discovered in the Northwest Territories to date.
The company that first optioned the property from Smith was Tradewinds Resources Ltd. But Tradewinds ran into financial problems in 1996 and returned the property to Smith.
Now, New Shoshoni will spend about $300,000 on further exploration to determine if the area is rich enough to become a commercial mine.
A mine located so close to Yellowknife would mean extremely low production costs compared with other mines in more remote locations.
"We have a very interesting situation because our costs are a fraction of everybody else's costs" said New Shoshoni's Ralf Hillebrand.
Fraser Fleming of Snowfield Development Corp. said the company will spend almost $1 million dollars during the next six months of drilling.
Geological surveys studies by the federal government as well as magnetic and electro-magnetic surveys of the area prove diamonds are present, he said.
"We've come up with stuff that only occurs in kimberlite contained diamonds and we'll be drilling those targets," he said.
Prospector and barge operator David Smith discovered the first pipe in the Dry Bones area in 1994.
He was struck by the geographical features of the Bay, especially by how deep it was.
On hydrographic charts, the Bay shows up as a very deep hole -- kimberlite is often associated with deep lakes and holes.
Smith staked the property and, at his own expense, followed up with magnetic surveys, and drilling which uncovered about 24 metres of kimberlite under 77 metres of clay.
