After months of delays, junior diamond explorer Margaret Lake Diamonds (DIA:TSXV) will finally begin their first pass exploration program on the Margaret Lake property in the Northwest Territories this week.
This initial program will consist of a helicopter-borne gravity gradiometry known as the HeliFALCON® to help the company narrow down targets for drilling its extensive land package.
Margaret Lake holds over 23,199 hectares after recently staking an additional four claims to the north.
The HeliFALCON® gravity gradiometer system has been contracted to fly a 75 meter line spacing survey at a nominal 35 metres above the ground at 110 to 130 km/h. This should provide high-definition gravity gradiometry and magnetics which can be used to direct ground surveys and, ultimately, to define kimberlite-like drill targets.
To expedite the process Margaret Lake commissioned a digital terrain model together with detailed bathymetry of the property using WorldView2 high-resolution satellite imagery. Typically other explorers have had to wait for the results of the gravity survey prior to performing a bathymetric survey which delays the interpretation of data.
Modern techniques like this survey were not available in the diamond boom of the 1990’s and given the exploration success of Kennady using similar modern surveying techniques to find diamondiferous kimberlites, Margaret Lake’s management team believes this survey could pay for itself quite quickly.
The estimated cost of a survey like this is $800,000 and Margaret Lake expects to have the results within 2 weeks.
The company is currently earning a 70% interest in the property by spending $2 million in exploration expenditures by October 13, 2015.
The company raised $1.2 million in April and after spending on the helicopter survey will likely need to raise money soon after its completion.
We have calls in with management and will update this post accordingly.
Disclosure: I am a shareholder of Margaret Lake Diamonds Inc. and as a result am biased. This is not investment advice. Always do your own due diligence.