Big Red Diamond Corporation

Big Red Diamond Corporation

March 21, 2006 10:55 ET

Big Red Diamond Acquires Property In Bristol Township

TIMMINS, ONTARIO--(CCNMatthews - March 21, 2006) - Big Red Diamond Corporation (TSX VENTURE:DIA) is pleased to announce the acquisition of the Bristol property, located in the Bristol, Godfrey and Carscallen Township, approximately 10 km west of Timmins, ON, in the Porcupine mining district. The property is composed of nineteen (19) claims, consists of eighty (80) claim units and covers an area of 1,280 hectares.

This property was acquired from Larry Gervais, of Timmins, ON, and John Derweduwen, of South Porcupine, ON. The transaction calls for work commitments of $100,000 over three years. Upon reception of regulatory approval Big Red must pay $5,000, as well as on the first anniversary of the approval of the transaction, and $7,500 on the second anniversary of the approval of the transaction.

The Company must also issue 125,000 common treasury shares on regulatory approval, and four (4) semi-annual issuances of 62,500 common treasury shares. In the event of obtaining a positive feasibility study on the property, Big Red must issue an additional 200,000 common treasury shares. A 3% NSR is payable upon production, half of which can be bought back for the sum of $2 million. 1% can be bought back for $1 million and the remaining 0.5% for an additional $1 million.

The property is located on the world famous Destor Porcupine Fault Zone. This area is host to all present and past gold producers of the Timmins mining camp, which has produced in excess of 70 million ounces of Gold since being discovered.

Highway 11 crosses the eastern part of the property and a number of old logging roads can be found on the property. Being close to Timmins exploration costs should be limited since most exploration goods and services are readily available.

This Press Release was reviewed by Michael P. Gross, geologist and a Qualified Person under National Instrument 43-101. Mr. Gross is Chairman of the Board of Directors of Big Red.

On Behalf of the Board of Directors

Francois C. Desrosiers

Contact Information

  • Big Red Diamond Corporation
    Francois C. Desrosiers
    (514) 982-6044 ext. 225