For immediate release
August 02, 2005
MEDIA RELEASE
DE BEERS CANADA AND CAMECO CORPORATION SIGN OPTION AGREEMENT FOR THE ABERDEEN LAKE PROPERTY IN NUNAVUT
Toronto - Tuesday, August 2, 2005 — De Beers Canada announces that it has signed an agreement giving Cameco Corporation an option on De Beers' Aberdeen Lake property in the eastern arctic, Nunavut. The property consists of 14 mineral permits covering approximately 2,300 sq kilometers and is located 150 kilometers west of the hamlet of Baker Lake.
De Beers has been prospecting for diamonds in this part of Nunavut since 1998 and has land holdings which hold promise for other minerals. "De Beers Canada is pleased to be associated with the leading player in the uranium industry. We remain focused on diamonds, but are alert to multicommodity value in our exploration portfolio. This agreement adds a dimension to our relationship with Cameco. We are active joint venture partners in Saskatchewan on the Fort à la Corne
project," said Richard Molyneux, President and CEO of De Beers Canada Inc.
In terms of the agreement, Cameco will have the option to spend an aggregate of $1,800,000 on uranium exploration over a period of four years, with a minimum of $300,000 spent in the first year, to earn a 60% interest in the property. If Cameco earns 60%, De Beers and Cameco will form a joint venture and Cameco will be the operator and will have marketing rights for De Beers' share of uranium production.
De Beers' exploration budget this year is C$40 million. Its current land holdings in Canada are 235,000 sq km. In October 2004 a two-year data sharing agreement was signed with Inco on Baffin Island in respect of nickel and other minerals.
De Beers has two diamond projects under development in Canada, Snap Lake in the NWT and Victor in northern Ontario. Sampling and delineation work continues at two of the company's advanced joint venture projects, namely Gahcho Kué, with Mountain Province Diamonds and Camphor Ventures, and Fort à la Corne, with Kensington Resources and Cameco Corporation.
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| For further
information contact: |
Linda Dorrington
Manager - Public and Corporate Affairs
De Beers Canada Inc.
Business Office: 416 645-1710 ext. 412
Home Office: (905) 849-0619
Cell Phone: (416) 818-2254
Email: linda.dorrington@ca.debeersgroup.com
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