Big Red Diamond Corporation
TSX VENTURE : DIA

Big Red Diamond Corporation

October 31, 2006 13:33 ET

Big Red Diamond Signs Option to Acquire Two Uranium Properties in Quebec

MONTREAL, QUEBEC--(CCNMatthews - Oct. 31, 2006) - Big Red Diamond Corp. (TSX VENTURE:DIA) has signed a non-arm's length option agreement to acquire a fifty-per-cent interest (50%) in two uranium properties in Quebec that Antoro Resources has under option.

The option calls for Big Red Diamond to issue 1.5 million shares of its treasury to AntOro Resources Inc. as well as contribute to 50% of: the cash progress payments, 50% of the exploration expenses to be incurred by the Companies on the properties as outlined in the original option agreement, and assume 50% of the NSR buyback price in such an event.

The first property is the Andy Lake property, located directly east and contiguous to Nova Uranium's Mont Laurier uranium property. The Andy Lake property consists of nine CDC cells (map designated claims) covering 460.89 hectares. The property is located directly east and contiguous to Nova Uranium's Mont-Laurier property. Nova holds a significant number of claims in the area.

During a recent radiometric survey six significant geophysical (including the two original anomalies) were identified by AntOro on the property They include the Raoul Lake anomaly, now referred to as anomaly "B", that was located by AntOro and where some of the trenches excavated by SOQUEM in the 1970s were found and re-sampled. This anomaly is the largest on the property and has a strike length of 250 m. Together with anomaly "A" it strikes along a northwest direction for a total length of over 400 m. This strike coincides with a similarly oriented belt of pegmatites, granite/granitic gneiss and quartz feldspar gneiss outcrops. These two anomalies have the highest radiometric readings (1,040 counts per second on anomaly "A" and 4,050 cps on anomaly "B") on the property and have the majority of the higher anomalous readings.

Anomaly "C" (maximum 530 cps) was also located southwest of the "A" and "B" anomalies as well as being southwest of Raoul Lake and could be part of the same formation. Anomaly B and Raoul Lake are now exploration targets which need to be further explored.

Anomalies "D", "E" and "F" (between 415 to 495 cps) were found in the southwest corner of the property. Anomaly "D" appears to be underlain by pegmatites, "E" is predominantly underlain by a quartz-feldspar gneiss and anomaly "F" is mostly underlain by a pegmatite with its northern section underlain by granite and/or granitic gneiss.

The "B" and "D" geophysical anomalies were explored extensively. The company cut two 500-metre by 500-metre grids over each of the prospects, with line spacing of 50 metres and survey stations every 25 metres for a total of 11.75 line kilometres. The radiometric survey was completed with readings taken every 12.5 metres. Additional readings were taken elsewhere on the property when anomalous readings were uncovered. A total of 976 radiometric readings were taken and prospecting was also done along the grid and on the property to complete geological mapping.

In addition, the baseline was extended between the two anomalies over 750 metres to acquire geophysical data and to determine if the two anomalies might be connected. The balance of the property was explored in a less systematic manner using radiometers and GPS. Any new anomaly was surveyed and when feasible rock samples were taken. In the case where the overburden was too thick, the anomalies were flagged and located by GPS. They will be the object of mechanical stripping later this fall or in early winter.

Within the grids the highly anomalous readings were hand stripped and rock sampled when feasible. Thirty-seven saw channel and grab rock samples were taken and sent to ALS Chemex Lab in Val d'Or for 50-element assay. The results from lab assays will be disclosed when available. The Raoul Lake radioactive zone seems to have similar characteristics and mineralization as Nova's A and B radioactive zones as described on Nova's website.

The second is the Maro property that covers five square kilometres within nine contiguous claims approximately 70 kilometres east of Radisson, Que., on an island along the shore of the Robert-Bourassa hydroelectric reservoir. It offers a high exploration potential based on previous sample results. Selected rock sampling completed on the property returned 14.72 per cent uranium or 17.36 per cent U308. Previous drilling on the Maro property returned 610 parts per million uranium over 17 metres and 0.3 per cent uranium over 0.46 metre.

Recently Phase I of the exploration on the Maro property was completed. The 2 original anomalies were located and sampled. Some of the original drill holes were located and re-sampled. The anomalies were discovered by the SES Consortium (Seru Nuclear, Eldorado Nuclear, SDBJ), in 1974 producing radiometric counts as high as 6,200 counts per second from outcrops and the most interesting occurrence, the Maro anomaly, yielded grades as high as 14.36 per cent U3O8 from selected surface samples (GM 50022), as well as 600 pm U over 17 metres and 0.3 per cent U over 0.46 metre from 15 diamond drill holes completed during the winter of 1976 (Min. Ressources naturelles et de la faune-Quebec-GM 34121 and GM 37107).

To acquire 100 per cent of both properties, the partners must spend $600,000 in work commitment over three years from the date of regulatory approval of the original transaction with AntOro. At the outset Antoro paid $10,000 and issued 450,000 common treasury shares upon approval of the transaction. The partners must make a payment of $10,000 and the issuance of an additional 450,000 common shares of AntOro on Jan. 1, 2007; a payment of $20,000 and the issuance of 600,000 shares of AntOro on Jan. 1, 2008; and a final payment of $25,000 and the issuance of 600,000 common shares of AntOro on Jan. 1, 2009. A 2-per-cent net smelter royalty (NSR) on precious and base metals production, as well as on the sale of uranium, is payable upon production. 1.5 per cent of the NSR can be bought back by the partners for $1.5-million.

Both properties have been optioned from Fayz Yacoub, PGeo, of Surrey, B.C. Mr. Yacoub is also the owner of the neighbouring Mont Laurier uranium property that has been optioned to Nova Uranium. The exploration programs on the property will be jointly decided by AntOro and Mr. Yacoub. Mr. Yacoub, through his company, On Track Exploration, will grant all the fieldwork on both properties and will act as exploration operator.

Big Red wishes has granted 300,000 share purchase options to Martin Nicoletti, as compensation as consultant to the Corporation. These options give the right to acquire shares at $0.10 each.

This press release was reviewed and verified by Benoit Violette, director of AntOro. Mr. Violette is a qualified person under National Instrument 43-101.

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

Contact Information

  • Big Red Diamond Corp.
    Francois C. Desrosiers
    President
    514-982-6044 ext. 223