Patrician Diamonds Inc.
TSX VENTURE : PXC

Patrician Diamonds Inc.

May 24, 2005 09:01 ET

Patrician Diamonds Inc.: New Diamond Claims And JV Coppermine River District, Nunavut

ORLEANS, ONTARIO--(CCNMatthews - May 24, 2005) - Patrician Diamonds Inc. ("Patrician") (TSX VENTURE:PXC) today it has entered into a letter of intent ("LOI") with Ur-Energy Inc. ("Ur-Energy"), a private uranium exploration company. Under the terms of the LOI, Ur-Energy can earn an 80% interest in Patrician's 18,000 acres at Dismal Lake, Nunavut, by paying to Patrician $50,000 to cover staking costs, 400,000 shares of Ur-Energy (100,000 in the fist year) and by spending $1 million in exploration over three years.

The Patrician claims are located between Ur-Energy's Dismal Lake East and West blocks. Ur-Energy plans to fly a Geotem airborne electromagnetic-magnetic survey over all three claim blocks in the second quarter. Historical work has located several thousand radioactive boulders on Ur-Energy's claim groups.

Similarly, should Ur-Energy find any potentially diamondiferous opportunities on its 130,000 acre Dismal Lake claims, then Patrician may earn up to 80% in the diamond potential of those claims by spending $1 million over three years in exploration.

The Dismal Lake East and West Blocks are described in a 43-101 report prepared for Ur-Energy by J. D. Charlton, P. Geo. The final agreement is subject to a fairness opinion prepared by a third party as well as TSX-Venture and board approval.

For maps and additional information about property location and technical details, please visit Patrician's web site at http://www.patriciandiamonds.com.

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

Contact Information

  • Patrician Diamonds Inc.
    Robin B. Dow
    CEO
    1-888-834-7708
    robin@ppau.ca