CH7 Domain 5

Domain 5 is an area in the NW portion of the CH-7 kimberlite.

Update Jan 13th, 2016 - Bulk sample results are now out and there are more questions then answers.

They processed 45.7 dry tonnes of kimberlite at the SRC in Saskatchewan and came up with 60 carats equating to a 1.3 cpt grade. There was a problem with breakage from the RC on site and that accounts for a 10 to 40% under reporting of the grade, but there is an acknowledgement that even with that adjustment, it does not correlate with the earlier population curves.  Something is amiss and further investigation needs to be completed to figure out the discrepancy. After the breakage factor is put in, the grade is more likely 1.4 to 1.8 cpt. This is still a very high grade for Chidliak.

On top of population curve discrepancy, they had to use caustic fusion on some of the concentrate because the grease table did not pick up some of the diamonds from the bulk sample and the diamonds slid right past the grease. Diamonds have an adherence to stick to grease and that is why a grease table is used.

Excerpt's from the press release: (Jan 12 2016 news)

"Diamond recoveries remained within normal parameters, with one notable exception: unusual grease-repellant coatings are present on diamonds from lateritized KIM-5 material therefore causing the diamonds to not stick to grease"

"The correlation between the microdiamond results for KIM-5 previously reported and the bulk sample diamond grade result herein reported are inconsistent. The exact cause of this inconsistency is under review. Volumetrically, KIM-5 represents less than 4% of the CH-7 kimberlite and is a heavily weathered, lateritized unit which is geologically variable and contains on average 40% moisture. As noted above, the diamonds from this unit have an unusual grease repellant coating. These factors, or a combination of them, could account for the inconsistency between microdiamond and bulk sample grades."

The above indicates that Domain 5 is geologically variable, so it might just be the location of the bulk sample hole versus  the previous core drilling locations.

The tonnage represents only 4% of the kimberlite pipe, so it is possible not much priority will be put on any investigation. It looks like CH-6 will move back to the front of the line as the key value generator for the project.
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Update - Nov 17th, 2015 - A third set of caustic results was just issued for Domain 5 and previous results were consolidated into one set of caustic results. It appears the 0.51 off-white octahedron diamond has made it into the consolidated results.

Old consolidated results show a grade of 6.02 cpt (carats per tonne) and the new caustic results show a grade of 4.64 cpt. A combined grade of all results gives a grade of 5.5 cpt. If you remove the one half carat stone, it still comes across as a remarkable 4.18 cpt.

This is some serious high grade diamond kimberlite and trumps CH-6 for Grade. Value will be determined in the first quarter of 2016 as well as confirmation of macro grade with a 22 tonne sample.

There is significant reason to believe this kimberlite material will be the first kimberlite ever put through the Chidliak mill.

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This came to light in March 2015 when there was an announcement of a new domain area within CH-7.

News Release -- March 10th, 2015

Originally, CH-7 was thought to have just a south lobe and north lobe. That has changed and now there is a total of 5 domains throughout. This new domain is quite special in that the carat counts/kg are exceeding the similar counts in CH-6.

This domain deserves a whole page on this blog as it might be the first kimberlite to be dug up to feed the mill. Up until this point, CH-6 has assumed that role.

What is known about Domain 5.

We have one good photo of where this is located (NW Corner):



You can clearly see where it is in the image. It is very close to surface and would make an ideal starter pit for the project.

What are the results to date for this domain:

The March news release came up with the following stellar results:


Excellent results.

Now, what else do we know.
In the 2014 or 2015 technical report there is a Diamond Drill hole # 7 from 2012 that had an azimuth of 290 degrees, dip of -45 degrees and a length of 152 metres. That means, the hole ended about 75 metres below the surface. The collar of the hole shows it started in the NE corner and headed toward what is now Domain 5. See the image below for the location of DD07 (labelled at the end of the hole). You can see some green highlighted kimberlite that is a reasonable estimation of where the sample in question could have been taken from.

Details of DD07 - Azimuth -45, inclination from Horizontal 291, overburden (18.7 m), kimberlite intercepts from 24 to 123 metres for a 99 metre intercept. True width of intercept - 70 metres. End of hole - 152 metres.



Here is the news release from that Diamond Drill hole -- Feb 27th 2012

These are the stellar results from that news release:

 

The location and the fine print above show that it could be part of Domain 5 and this was in 2012 when they hadn't clearly defined that portion of CH-7.

The carat/kg count of the 2 known drillholes for Domain 5 are 4.85 stones per kg and 6.26 stones per kg. This third drillhole that is suspected to be part of domain 5 has a carat count of 3.11 stones per kg. These are very high stone counts and the third drillhole could be a portion of Domain 4 and 5.

This leads to the conclusion that the 0.51 off-white octahedron diamond from the end of hole DD07 might actually belong to Domain 5.

Page 7 of this presentation has a photo of the diamond in question -- Chidliak March 2012

Here is the photo:





the three samples above combine equate to:

382.36 kg's
1738 stones
1.508 commercial carats.

 or

3.94 carats per tonne
4.5 stones per kg

Originally thought to only have 2 caustic results, the case may be that a third result could be included.

Domain 5 is shaping up to be a significant find and a 4th caustic result will becoming available in October with a bulk sample result (22 filtered tonnes) coming out late this year.

This will be a direct result on NPV of the project as it is near surface and high grade. The high grade will be confirmed as well as a valuation model completed in the next 6 months.





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