Diamond exploration news

Melkior Resources acquires Qubec diamond property

MONTREAL, QUE.–In June, Melkior Resources Inc. acquired the Kimber property located in Le Tac Township, Qubec. This property consists of ten map-designated claims covering an area of 160 hectares. Melkior acquired Kimber from Rock Harvey in exchange for cash payment of $5,000 and the issuance of 500,000 treasury shares. In the event the property is put into production Melkior has agreed to pay 1% net smelter return.

Melkior is planning to spend $50,000 in the next 12 months on exploration. The program will consist of geochemical surveys, glacial train studies, mapping and sampling.

Kimberlite targets identified at Mistassini project

VANCOUVER, B.C.–Canabrava Diamond Corporation and Majescor Resources Inc. have completed a high-resolution airborne geophysical survey over the high priority target area on the Mistassini project in Qubec.

A total of 2,200 line-km of magnetic survey data was collected at 100-metre line spacings, flying at a low level over the 12-km by 14-km target area. This area lies immediately up-ice of till sample sites from which abundant kimberlitic indicator minerals were recovered during the 2002 field program. Many of these kimberlitic indicators have fragile surface textures, which combined with the abundance of indicators, strongly suggests local kimberlite sources. Preliminary examination of the geophysical data has defined a number of potential kimberlite targets.

Selected targets from this geophysical survey will be followed up during the 2003 sampling program. This sampling program commenced in June and aims to define indicator mineral-supported geophysical targets in preparation for drilling.

Shift in corporate focus for Diadem

TORONTO, ONT.–New management has completed a review of the mineral properties and the corporate structure of Diadem Resources Ltd. As previously contemplated in the company’s announcement last February, management and the Board of Directors of Diadem have determined to dispose of its residual mineral interests in Mexico, Nicaragua, Indonesia and Qubec. As a result the values of these properties were written down to nominal carrying values at year-end, May 31, 2003, because of lack of exploration activity or commercial exploitation.

These mineral interests and related liabilities have been transferred to a special-purpose company. Diadem will own all of a class of first preferred shares of this company, the shares of which will be redeemed from 60% of the net proceeds of sale or joint-venturing of the mineral interests. The transaction removed approximately $500,000 of liabilities from the Diadem balance sheet as of May 31, 2003.

Furthermore, the company is in discussions to make a non-cash acquisition of a significant diamond project in Canada. Further details of this project will be provided as soon as practicable. In anticipation of this new activity, the company has been holding discussions with a number of Canadian investment bankers to arrange financing. It is anticipated that the financing will include some Diadem equity and convertible flow-through preferred shares designed to result in minimum dilution to Diadem at the current share price.