Holman (Sep 15/03) - Even if a diamond mine were to be eventually built on the NWT side of Victoria Island, the project is still years away, says the vice president for Commander Resources.

"It's a lot of work, a lot of time and it takes between $50 and $60 million to evaluate kimberlite before mining," said Bernard Kahlert, vice president of exploration, from his Vancouver-based office.

In early August, Commander Resources started exploring and sampling in the Kagloryuak River and Burns Lake region of Victoria Island, 250 kilometres west of Holman.

The 20-person exploration team is doing magnetic helicopter surveys and till samples looking for kimberlite pipes -- diamond indicator rocks. Once the kimberlites are found, the team will take a few core samples for research.

Kimberlite -- and diamonds -- have already been found on the Nunavut side of Victoria Island, said Kahlert.

"We believe there is more to be found on the Northwest Territories side."

Must have lots of diamonds

Finding a kimberlite deposit doesn't necessarily mean a diamond mine will be built.

Commander Resources has held a diamond claim on Victoria Island since 1994.

"It's been almost nine years of exploration and we still don't have a commercial deposit," said Kahlert.

There would have to be a minimum of 15 to 20 million tonnes of kimberlite to establish a viable mining operation, he said.

The kimberlite must produce commercial quality diamonds and exceed one carat of diamonds per tonne of kimberlite.

If, within three or four years from now, the conditions are favourable, then a mine might be built.

Exploration of the terrain and building the mine will cost the company about $1 billion before the first diamond is even mined from the ground. That's why the company must be sure there's enough to make the mine worthwhile, said Kahlert.

After this survey, larger samples -- about two tonnes -- may be taken next year if there are good diamond counts, he said.

This would be followed up with 20 tonnes taken over the next three to four years. If those samples are good, then between 500 and 1,000 tonnes of kimberlite will be removed.

This year's land and air surveys were scheduled to take place until the end of August or beginning of September.