For immediate release
October 26, 2005
MEDIA RELEASE
De Beers Canada Inc. and Majescor Resources sign diamond option agreement for the Baker Lake Property in Nunavut |
Toronto - October 26, 2005 — De Beers Canada confirms that it has signed an agreement giving Majescor Resources an option on De Beers' Baker Lake property in the eastern arctic, Nunavut. The property consists of 51 mineral permits covering approximately 9,000 sq kilometers and is located 50 kilometers west of the hamlet of Baker Lake.
The parties intend to form a 50:50 joint venture to explore for diamonds at Baker Lake with De Beers as the operator. In 2004, De Beers spent C$1,000,000 at Baker Lake, and it plans to spend C$240,000 in 2005.
De Beers has been prospecting for diamonds in this part of Nunavut since 1998. "De Beers Canada is pleased to partner again with Majescor. This agreement builds upon our solid relationship. We are active joint venture partners in the Northwest Territories at our Upper Carp Lake and Hardy Lake properties," said Richard Molyneux, President and CEO of De Beers Canada Inc.
The property also holds promise for uranium. In terms of the agreement, Majescor can also spend C$400,000 exploring for uranium over a period of three years, followed by a further C$240,000 to achieve an 80% holding in uranium.
De Beers' current Canadian property holding is 235,000 sq km.
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. De Beers will spend C$1.6 billion to build its first two mines.
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| For further information contact: |
Carrie Schmidt
External Communications Coordinator
Public & Corporate Affairs
De Beers Canada Inc.
Phone: 416-645-1710 ext. 2128
Email: carrie.schmidt@ca.debeersgroup.com |
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