Brian Testo's Grizzly Diamonds Ltd. plans to drill targets on a few of its properties in northwestern Alberta. The company is busy with a mini-bulk test of the Legend kimberlite in the north-central part of the province, but it thinks a pipe cluster in the Buffalo Hills area extends onto its other properties, based on early results.

The plan
Mr. Testo said Grizzly was flying ground in the area surrounding the K-14 and K-6 kimberlites, where Stornoway Diamond Corp. collected mini-bulk samples earlier this year. Grizzly has been picking up ground in the area over the past several years and it now nearly surrounds the big Buffalo Hills property that Stornoway acquired through its takeover of Ashton Mining of Canada Inc.

Mr. Testo said Grizzly currently has six targets lined up and he expects his geophysical survey will add significantly to the tally. "I want to get up to 30 targets," he said, adding that the preliminary work would consume about $300,000. Drilling will push the total to about $1-million, doubling the company's total expenditure so far.

Grizzly's main effort will go to its Smoky the Bear claims, which lie immediately south of Ashton's property, and the Preston Upon the Wolverine ground, which adjoins Stornoway's western border. Grizzly's search will also cover the Grand Cub Aidan claims, which lie along Stornoway's northern border.

"I would like to drill as many targets as I can," Mr. Testo said, although the scope of the program will be dictated by Grizzly's limited treasury. The company believes it will have enough cash to drill about 15 anomalies, which its founder thinks is sufficient to deliver a few finds. Mr. Testo said drilling the anomalies in groups of 10 or 15 at a time would lessen the chances of missing completely, which was always a risk with a smaller program.

The cash
Grizzly had over $2.5-million in the bank at the end of January, and Mr. Testo said the company had enough cash to pay for its work hunting gems in Alberta and precious metals in British Columbia for several months. The former pipefitter said he has willing investors lined up for a new private placement, but he would prefer to wait for good news to push Grizzly's share price higher.

Mr. Testo began picking up diamond properties in the mid-1990s through a private company, which currently holds about 20 per cent of Grizzly's shares. He took Grizzly Diamonds public three years ago, helped by some well-heeled friends, including Brian Elkow, a Whitecourt-based motel owner who is also a founding director of Grizzly. Pamela Strand and Douglas Turnbull are also members of Grizzly's board.

The encouragement
Grizzly's Buffalo Hills gem hunt could get a boost in a few months from Stornoway's latest mini-bulk tests. Ashton tested the K-14 pipe on a few occasions during the late 1990s, obtaining a grade of 0.12 carat per tonne from just over 500 tonnes of kimberlite. That was deemed a disappointment at the time, but Stornoway believes the pipe to be of interest in a Fort a la Corne context. Shore Gold Inc thinks a few of its Saskatchewan pipes are economic, based on comparable average grades.

A few other Buffalo Hills pipes yielded grades of about 0.10 carat per tonne or more, including K-91 and parts of K-6. If Stornoway's new tests yield comparable grades and some larger stones, comparisons with Fort a la Corne will continue. Further, the small K-252 pipe, with a grade topping 0.5 carat per tonne, provides an added twist to the Alberta hunt. Based on the old Ashton numbers, any new Grizzly find would have a reasonable chance of being significantly diamondiferous, and could add tonnage to a combined Buffalo Hills play.

Grizzly closed unchanged at $1.23 Wednesday on 4,500 shares.