Big Red Diamond Corporation

Big Red Diamond Corporation

August 04, 2005 09:51 ET

Big Red Diamond Corporation acquisition of property in Black Township, Larder Lake mining division, Ontario

MONTREAL, QUEBEC--(CCNMatthews - Aug. 4, 2005) - Big Red Diamond Corporation ("BRDC") (TSX VENTURE:DIA) is pleased to announce the acquisition of a seventy percent (70%) interest in the Black property, currently composed of six (6) mining claim, #4202896, 4202898, 4207100, 4207113, 4207114 and 4207115 made up of forty-nine (49) 16 ha claim units, located in Black township, Larder Lake Mining Division, Ontario, as well as any other claims staked or soon to be staked by the Vendor in the same Township.

The property was acquired from 6398651 CANADA INC., of Moose factory, against the issuance of 1,000,000 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 by making a cash payment of $1.5 million. The Vendor retains a participating 30% 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 sees its interest reduced below 20%, it would then have only one (1) representative on the JV Committee.

The property was selected based on preliminary results of an ongoing stream sediment and overburden sampling program being conducted by the Vendor and the coincidence of promising mineral grains with a geophysical anomaly on the Lee Property. Mineral grains from the Black Property and surrounding area have been submitted for SEM and Electron Microprobe analysis. Results are expected soon.

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