Big Red Diamond Corporation

Big Red Diamond Corporation

October 20, 2005 11:43 ET

Big Red Diamond Corporation: Acquisition of Diamond Exploration Property in Tolstoi Township, Ontario

MONTREAL, QUEBEC--(CCNMatthews - Oct. 20, 2005) - Big Red Diamond Corporation ("BRDC") (TSX VENTURE:DIA) is pleased to announce the acquisition of a 70% interest in the Tolstoi property, currently composed of three (3) mining claims, # 4202897 (1 unit), 4207111 (6 units) and 4207112 (8 units) covering 240 hectares and located in the Tolstoi township, 70 km NNW of New Liskeard, Ontario.

The property was acquired from 6398651 CANADA INC., of Moose Factory, ON, through the issuance of 900,000 common treasury shares of BRDC, the payment of $10,000, upon receipt of regulatory approval, as well as a 3% NSR (or equivalent on the production of diamonds), half of which (1.5%) can be bought back for $1.5 million. The Vendor retains a 30% participating interest in the Property. Both parties agree to respectively fund their proportional interest and to operate the exploration and development of the property under a Joint Venture Committee consisting of two (2) individuals from each party. In the event the Vendor's interest is reduced below 20%, it would then have only one (1) representative on the JV Committee.

The property was selected based on the presence of an isolated semi-circular magnetic anomaly. This anomaly was the object of a ground Mag survey with line spacing of 25 m and data stations of 12.5 m; follow up work will include overburden sampling for indicator minerals. The results have not yet been received by the company and will be disclosed upon reception.

In addition, the Vendor has granted BRDC a right of first refusal on the sale of its 30% interest in the Tolstoi property.

The property represents an important addition to BRDC's portfolio of high quality diamond exploration properties and is located proximal to the recent discovery of a large kimberlite by Tres-Or Resources Ltd. and Arctic Star Diamond Corp. as well as in the same general area as the previously announced acquisition of the Lee Property both of which lie NNW of the new kimberlite discovery, along the Lake Timiskaming Structural Zone.

The property lies NNW of the Contact Diamond New Liskeard kimberlites, that are the object of additional diamond drilling work over the next few months.

The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this release.

Contact Information

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