Diamondex to Acquire Brodeur Project
News Release - Monday, May 09, 2005
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Vancouver, BC - Diamondex Resources Ltd. ("Diamondex") (DSP-TSX.V) is
pleased to announce that the Company has signed a letter of intent with
Kennecott Canada Exploration Inc. ("KCEI") to acquire a 100% interest
in a portion of the Brodeur Project, subject to an underlying Property
Acquisition Agreement and certain back-in provisions by KCEI (see
www.diamondex.net for project location).
The Company will have the exclusive option to a number of claims and
Prospecting Permits totaling 403,580 acres centred on the northern half
of the Brodeur Peninsula of Baffin Island, Nunavut
Since 2001, KCEI has expended approximately $8 million over a larger
area, which includes the Diamondex Option, on exploration initiatives
that included the flying of 141,000 line kilometers of airborne
magnetics, the collection of several hundred stream and till samples
and diamond drilling programs that have located three kimberlite bodies
to date. The largest of these, the Tuwawi pipe, measures approximately
4 ha. Caustic fusion of recovered kimberlite returned from several
shallow drill tests have produced microdiamond distribution curves
similar to those reported from Twin Mining's Freightrain pipe, located
12 kilometres to the southwest.
A broad, low amplitude magnetic feature centred 400 m east of the
Tuwawi pipe measures 300m by 300m. This target has yet to be tested
successfully but will figure prominently in the Company's exploration
plans for the 2005 field season The other kimberlite bodies, Nanuk and
Kuuriaq, were discovered by drill testing magnetic targets. Several
magnetic targets remain to be tested and numerous kimberlite indicator
mineral clusters have not been resolved. Four diamondiferous
kimberlites have been discovered immediately to the south of the Option
area and are actively being explored by Twin Mining Corporation.
Under the terms of the agreement, Diamondex must expend $6 million and
complete a feasibility study over the next ten years to acquire a 100%
interest in the Project. In the event that the feasibility study
projects annual recoveries of not less than C$100 million for not less
than 5 years, KCEI has the right to either acquire a 60% interest by
paying 200% of the expenditures by Diamondex up to the delivery of the
feasibility study and funding all costs though to a decision to
commence commercial production or retain a 2% gross royalty.
Diamondex intends to conduct an aggressive $2 million exploration
program during 2005 with the objective of outlining the size potential
of the Tuwawi pipe and outlining several other previously defined
magnetic targets through a combination of detailed airborne and ground
geophysical surveys, till and stream sampling, surface prospecting and
diamond drilling.
Diamondex believes the Brodeur Project has the potential to host a
major new diamondiferous kimberlite cluster.
Diamondex holds a very large and prospective portfolio of diamond
exploration properties in the lower Mackenzie River area and the
southern Slave Province of the Northwest Territories, the Melville and
Boothia Peninsula areas, as well as the Coronation Gulf district of
Nunavut and northern Quebec. Diamondex holds up to a 100% interest in
16 diamond properties totaling approximately 8.5 million acres.
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DSP is being quick to invest their financing dollars. This new development may give Twin some market interest.
LMBF |
