Trends in Canadian Diamond Exploration

Demand for both gem and industrial diamonds is very strong. Synthetic production supplies industrial uses, but synthetic gems remain inferior and expensive, so the large gem market is supplied by mining. Several major mines have been depleted, and the market is receptive to new sources of high quality gems. Canada's Precambrian terrane, extending across the Canadian Shield and under the Phanerozoic cover of the Plains and Hudson Bay, has excellent potential for diamonds, but exploration conditions are difficult due to recent glaciation. Early world exploration relying on recognition of diamond in alluvial sediments was adequate to launch pre- 1900 production from India, Brazil, and Africa. Exploration success in Canada, as was the case in Russia and other more recently discovered sources, however, had to await large investments in effort supported by advanced science and technology. Canadian exploration in many ways is similar to that in other regions, relying on analysis of tectonics, indicator minerals, geophysical surveys, and multiple stages of drilling and sampling. Very different from other regions, however, is Canada's surficial environment, in which recent glaciation has caused fresh indicator minerals to be transported hundreds of km. Exploration accelerated in Canada after 1960, first in Ontario and the Arctic Islands, then in Saskatchewan in 1988, and most importantly after the Chuck Fipke - Stew Blusson discovery at Lac de Gras, Northwest Territories, in 1991 that led to the billion-dollar BHP - Dia Met Ekati Mine that opened in 1998. In 2003, production from Ekati will be supplemented by that from the similar and nearby Diavik Mine of Rio Tinto and Aber. These mines will bring Canadian output to over 10% of world supply, and will position Canada with Botswana and Russia as world leaders in production of high quality gem diamonds. There could be other mines as well, as sites across the Arctic and in the south from Alberta to Québec are being explored by an array of companies, including De Beers, other majors, and several juniors.