Field investigations of anomalous 1998 sample results on the Ric property, according to reports reaching here, have led to the discovery of the new kimberlite, named Hydra. The new kimberlite body which is located on a lake shore probably extends under the lake. Petrological studies have defined the rock as a hypabyssal kimberlite. Numerous unexplained indicator mineral anomalies are present in the area. A helicoptor - borne aeromagnatic survey has just been completed in search of additional kimerlites in the region.

Meanwhile, material from the Hydra kimberlite will be processed and analysed for micro-diamonds at the AMCI laboratory in North Vancouver, according to John Auston, President and CEO of Ashton Mining of Canada Inc (AMCI). At the airborne survey identifies magnetic targets or the results of the micro-diamond test are favourable, a drilling programme will be planned for the coming winter.

During the 1999 summer field work, heavy mineral sampling programmes were completed on the Ric, Roc, and Con properties. Several encouraging concentrations of indicator minerals which warrant further investigations have also been detected. AMCI's Nunavut properties consist of four separate claim blocks totalling 79,000 hectares and are held under the Slave joint venture between AMCI and Pure Gold Minerals Inc., The former's interest in this joint venture has increased from at the beginning of 1998 to 81.8 per cent as a result of sole funding of programme upto June 1999. AMCI's interest will increase further, if it is required to sole fund the expenditure of the current programme. AMCI is operator of all of the joint venture programs which are directed by its Vice President Exploration and professional geologist Brooke Clements.

According to industry sources here, the prospects of this find may be considered promising since this new kimberlite is located in the vicinity of the Ekati Diamond mine which has already commenced production, since the latter half of the last year. It is producing high quality valuable rough diamonds. It is selling 65 per cent of its production in association of a diamond firm in Antwerp and the remaining 35 per cent to the Central Selling Organisation of De Beers, though the latter would have liked to handle the marketing of entire production of Ekati.

Another diamond mine is expected to be commissioned for commercial production by the end of 2000. This mine is expected to be bigger than Ekati which has been in production in Canada at present. The new mine is being developed by the global mining giant Rio Tinto with some other partners.

Until recently, most of the rough diamonds used to come from various African countries. However, Argyle has emerged in Australia as emerged the world's largest producer of roughs in volume of terms. One of its partners, Ashton is starting another rock diamond mine at Merlin in Australia. There is no doubt that Canada will emerge as an important supplier of roughs in the coming years.Some Indian diamond manufacturers and their affiliates in Antwerp are keeping a close watch on this development, since Canada is eager to promote diamond processing industry as well based on its roughs. Again Canada is an affluent country and those who can have a foothold there are expected to benefit considerably in the long-run. The Ekati mine is selling 65 per cent of its output of roughs directly. It is hoped that Canada's second mine also might sell a substantial portion of production directly to processors.Secondly, uphill now the Indian industry was having considerable difficulties in getting high quality roughs. It ishoped that this problem will be over, as more mining giants enter this field.