Debut Diamonds main project is the MacFadyen Kimberlites. The MacFadyen Kimberlites are adjacent to the De Beers Victor Mine in northern Ontario.
Joint Venture: MacFadyen is a joint venture between Debut Diamonds Inc. (“Debut”) and Cliffs Chromite Far North Inc. (“Cliffs”) formerly Spider Resources Inc.
Debut is operator of the MacFadyen Kimberlites Joint Venture and holds an interest in the project estimated at 58.35%.
Cliffs has the right to protect its equity position by electing to resume financial support once its joint venture interest has been diluted to 33% from its prior 50% interest.
Subject to the clawback entitlement of Ashton Mining of Canada Inc. (“Ashton”), Debut and Cliffs have exclusive ownership of mining rights that comprise the property. Both Debut and Cliffs may engage in business activities in competition with the joint venture. The clawback entitlement is part of an agreement between Ashton and KWG Resources Inc. (“KWG”) dated April 11, 1996, whereby KWG acquired Ashton’s 51% interest in a joint venture for $1,000,000 but Ashton retains the right to acquire a 25% interest in any kimberlite or diamondiferous discovery by reimbursing KWG for 300% of its total expenditures in the said discovery at any time up to a declaration being made to bring the discovery into commercial production. Debut has assumed KWG’s interest in the Ashton agreement.
Upon the reduction of Debut or Cliffs’s participating interest below 10%, such party shall be deemed to have withdrawn from the agreement and the remainder of their participating interest distributed pro rata to the other parties, subject to retaining a net sales returns royalty of an undefined percent of the appraised value of all diamonds recovered from the property and a net value royalty of 0.5% on the gross value of base metals produced from the property and 1% royalty on all other mineral products from the property. No party shall transfer less than all of its participating interest to a third party. Existing parties shall have a right of first refusal on any disposition of participating interest.
Property Description and Location: The MacFadyen Kimberlites property comprises a contiguous block of five mining claims about 672 hectares or 1,661 acres in size. The five claims are located just south of the Attawapiskat River, in the James Bay Lowlands of northern Ontario about 115 kilometres or 63 miles, west of Attawapiskat on the James Bay coast.
Kimberlite pipes and dykes have been found on the property: Good Friday, MacFadyen #1 and MacFadyen #2 bodies as well as two other zones called the MacFadyen #1b and MacFadyen #2b.
The MacFadyen and Good Friday kimberlites are part of the Attawapiskat kimberlite swarm, and are close to the De Beers Tango-1 and Tango-Extension kimberlites that occur about one kilometre to the SW.
Some of the following information relating to the MacFadyen, Pele and Uniform Surround claims is summarized from a technical report entitled “Technical (Geological) Report on the MacFadyen and Adjoining Properties”, dated October 27, 2008 (the “MacFadyen Technical Report”) prepared for Debut by Hadyn R. Butler (B.Sc. Hons., P. Geo.). Mr. Butler is a qualified person as that term is defined in National Instrument 43-101. Mr. Butler is an independent party in connection with the preparation of the MacFadyen Technical Report and has not received any interest in Debut or the MacFadyen Kimberlites.
The MacFadyen Technical Report is available to view on this website or at www.sedar.com in the Debut file.
MacFadyen Kimberlites mini-bulk sampling: On December 4, 2007, KWG announced the results on four kimberlite mini-bulk samples sent to SGS Lakefield for processing and possible recovery of diamonds. The source of the samples was about 3,557 kg of split drill core form several holes drilled on the MacFadyen claims in early 2007. SGS Lakefield, using dense media separation, “DMS”, to recover the diamonds, obtained the following results: 19.7 carats per hundred ton (“cpht”) from a 1,170 kg sample for the Good Friday Pipe, very low grade results from a 1,156.5 kg sample for the MacFadyen No.1 Pipe, 1.0 cpht from a 795.5 kg sample for the MacFadyen No.2 South Pipe, and 12.1 cpht from a 436.5 kg sample for the MacFadyen No.2 Dyke.
Subsequently, KWG announced on August 28, 2008 the further processing of remaining Good Friday Pipe half split drill core (weighing 1,170kg) and recovered 0.54 carats of diamonds suggesting an indicated diamond content of 46.15 cpht. This processing was accomplished at the Mousseau Tremblay Inc., “MSI”, heavy minerals laboratory in Williamsburg, Ontario. MSI used a different procedure to SGS Lakefield. Two diamonds were found in the +0.85mm fraction of the sample – one weighing 0.425 carat, the second weighing 0.115 carat. Both diamonds were white, transparent, clear and partly translucent, although some inclusions were noted. By comparison, SGS Lakefield found a 0.230 carat stone as a white translucent fragment with crystal faces showing 85% preservation in their split half of the Good Friday Pipe drill core.
Both the SGS Lakefield and the MTI processing do not offer a reliable determination of diamond grade on the MacFadyen Kimberlite pipes. Considering the sample sizes and the continuing diamond-recovery results, however, these results show that a larger sample of the Good Friday Pipe, as well as the MacFadyen No.2 Dyke, are required to confirm the actual grade of the diamonds MacFadyen Kimberlite pipes.
Survey of MacFadyen Kimberlite claims: A survey of the five MacFadyen Kimberlites claims has been completed in order to convert the claims into a mining lease. The MacFadyen property lies within the Attawapiskat First Nation Traditional Lands on the west coast of James Bay. There is an “Attawapiskat River Proposed Candidate Waterway Park” and a land withdrawal order (W21/79) in place for the removal of mining claim staking rights for a distance of 200 meters from the north and south banks of the Attawapiskat River. Consequent to this proposal, another withdrawal order (W-P-15-04) and an Order in Council (EBR Registry Number XB04E2006) has de-registered a 33 kilometre contiguous section of the river from the proposed waterway park where valid mining claims are held. Areas affected by this change include essentially all mining claims and leases covering the Attawapiskat kimberlite swarm including the MacFadyen property (e.g., see Environmental Commissioner of Ontario 2004/2005 Annual Report, Section 2, p.19). The 33 kilometre withdrawal zone is a positive development since it eliminates an arbitrary encumbrance to exploration and local development. The MacFadyen claim block was never staked previously for any mineral commodity.
Access, Climate, Infrastructure and Physiography: Access is by air to the recently built all-weather airstrip at the Victor Mine about five miles from the MacFadyen Kimberlites. There are gravel and/or bush roads from the air strip to the MacFadyen Kimberlites. Float planes can alight on the Attawapiskat River the summer. In the winter, heavy equipment is moved to the Victor Mine and MacFadyen Kimberlites by large trucks using a winter road over the frozen landscape.
Winters in the James Bay area of Ontario are long and cold, extending from late October to late April. Winter temperatures circulate around -10°C to -30°C with a mean minimum of -45°C, and a measured excursion in 1996 to -57°C. Summer temperatures range between 10°C and 20°C with a mean maximum of 29°C. The longer days of summer can be characterized by short-duration hot spells with temperature above 30°C.
The air strip and the recent opening of the Victor Mine has brought permanent infrastructure to the area. There are facilities in the area to support the 375 people that work at the Victor Mine. There is a hydro-electric transmission line that supplies power to the Victor Mine.
The MacFadyen Kimberlites property lies within the Hudson Plains eco-zone, a vast flat expanse of poorly drained and perched muskeg swamps cut by small incised river canyons. Large fens are present as flat water-saturated zones with drainage sustained by near to subsurface discharge through the peat. An average two metre thickness of muskeg is mostly developed over marine clays deposited from the early Holocene Tyrrell Sea (ancestral Hudson Bay), and has been exposed above sea level. Regionally, glacial till sheets and reworked till can be exposed as moraine hillocks and faint beach ridge lines, the latter outlining various margins of the narrowing sea.
Early exploration: In 1991, the joint venture developed a diamond exploration project and identified the area west of James Bay as having potential for kimberlites. At that time, De Beers had mining claims in the area covering parts of their already discovered Attawapiskat kimberlite swarm. During the summer of 1992 KWG/Spider, utilizing public-domain aeromagnetic maps, staked property in this new kimberlite field. By using known kimberlites in the vicinity as geophysical test models, KWG/Spider and UDL (a geophysical contractor) tested a new helicopter-borne magnetic system with GPS positioning during the summer and fall of that same year.
In February 1994, drill testing confirmed that De Beers had not identified the MacFadyen #1 and #2 kimberlite targets, located circa eight kilometres NW of the Victor kimberlite, and about one kilometre NE of the Tango-1 and Tango Extension kimberlites. A joint-venture agreement covering the period July 1993 to March 1996 was made with Ashton. The MacFadyen kimberlites are aligned along a fairly strong NW-trending magnetic basement lineament – a feature that might be interpreted as a possible feeder for kimberlites or, more likely, the margins of Proterozoic diabase dykes acting as preferred fracture controls for kimberlite emplacement. Five of the De Beers kimberlites are positioned close to this alignment; five others on a somewhat displaced southerly continuation; four kimberlites are located within one kilometre of this alignment; and two kimberlites are within ten kilometres.
In 1994, Spider/KWG initiated airborne magnetic surveys regionally in an effort to find “spot magnetic anomalies” as signatures of kimberlite bodies within the varying Precambrian magnetic background of the region. Shallow cover in the form of glacial deposits and Paleozoic sediments show no significant magnetic signature, so it was felt that discrete magnetic targets would be apparent in the airborne data.
In 1997, adjacent to the MacFadyen Kimberlites, De Beers obtained bulk samples from kimberlites on their properties. In the spring of 1998, the De Beers program expanded into a large-scale bulk sampling program (>10,000 tons) obtained with large-diameter drills. This activity led to a staking rush around the De Beers and KWG’s MacFadyen claim blocks.
Geological setting: Outcrops are quite sparse in the James Bay Lowlands, and none occur on the MacFadyen property per se. However, McBride (1994) detailed mapped Paleozoic outcrops in the Attawapiskat River bottom immediately NE of the claim group. Government geological surveys have examined Paleozoic outcrops along the Attawapiskat River. “Operation Winisk” examined areas to the NW and to the SE. The MacFadyen property lies on the south side of the Paleozoic Cape Henrietta Maria Arch (an interpreted continent-scale warp) on the Hudson Platform – a thin shallow marine shelf sequence between the Hudson Bay Basin to the NNW and the Moose River Basin to the SE. It may be significant that the regional NW-striking downwarp joining these two Paleozoic basins passes through the area.
There are four main geological elements to the property – unconsolidated Quaternary sediments underlain by variable karstic Paleozoic marine shelf sediments which are, in turn, unconformably overlying an Archean crystalline basement, with both the Paleozoic and Archean cut by the Attawapiskat kimberlite swarm. Exposures of the Archean basement occur about 100 km to the west of MacFadyen and comprise greenstone belt elements as well as a variety of gregarious granite-gneiss batholith outcrops. These units are well expressed on regional magnetic maps.
The only targets of economic interest on the MacFadyen property are diamondiferous kimberlites. Kimberlites are common, though very minor, magmatic units in the post-Archean geological record. Because they are usually very soft and quite weathered relative to their surrounds, they are often found residing in recessive topographic features, and frequently do not outcrop. For example, in the outcrop-rich Slave Province of northern Canada, they often occupy the bottom of small lakes scoured out by Pleistocene ice sheets. In the outcrop-poor James Bay Lowlands, however, the post-glacial Tyrrell Sea left a flat featureless terrain and kimberlites are unlikely to be found associated necessarily with distinctive landforms.
Kimberlite pipes are localized deposits and few contain economic quantities of diamonds sufficient to justify the development of a mine, and the existence of an economic kimberlite pipe at the Victor Mine provides no assurance that any of the kimberlite pipes in the MacFadyen property contain economic quantities of diamonds or can or will be developed into a mine.
Debut has not conducted any mining operations on the property and the work undertaken to date on the property is insufficient to estimate possible mineral reserves or resources.