Big Red Diamond Corporation

Big Red Diamond Corporation

June 14, 2005 14:46 ET

Big Red Diamond Corporation Acquisition of Property ln Lee Township, Larder Lake Mining Division, Ontario

MONTREAL, QUEBEC--(CCNMatthews - June 14, 2005) - Big Red Diamond Corporation ("BRDC") (TSX VENTURE:DIA) is pleased to announce the acquisition of a seventy percent (70%) interest in the Lee property, currently composed of one (1) mining claim, # 4202899, made up of four (4) 16 ha claim units, located in the LEE 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 $30,000, 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 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. Over 600 mineral grains from the Lee Property and surrounding area have been submitted for SEM and Electron Microprobe analysis. Among the field identified kimberlite indicator mineral grains are 47 clinopyroxene, 81 eclogitic garnets, 160 pyrope garnets, some having purple colour, some possible olivine grains as well as many exceptional, clear heavy mineral grains to be checked as possible diamonds.

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

The property represents an important addition to BRDC's portfolio of high quality diamond exploration properties and are located proximal to the recent discovery of a large kimberlite by Tres-Or Resources Ltd. and Arctic Star Diamond Corp. The Lee Property lies 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