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Iciena teams with Fipke in
Brazilian diamond project
7/2/02
Vancouver, July 2, 2002 -- Iciena Ventures Inc. (V.IIE) today announced it signed an agreement to acquire a 20% interest in a diamond project located in the Amazon craton, Brazil from Consolidated AGX Resources Corporation. Dr. Charles Fipke, who discovered the Ekati Diamond Mine for Dia Met Minerals Ltd., will act as operator of the project.
Located north of Cuiabá, Brazil the 63,000-hectare claim block was host to a large-scale diamond rush in the 1960's, when alluvial diamonds were first discovered. A large number of high-quality stones have been recovered, and local "garimpeiro" miners continue to find success in the local riverbeds with the price for a parcel of stones averaging about US$90/carat to US$120/carat.
The proliferation of high-quality alluvial diamonds in the area has attracted the attention of several major diamond companies. In the 1960s, an exploration programme, which met with mixed success, resulted in the discovery of more than 30 kimberlite pipes. The area was revisited in the 1990's, uncovering more then 10 additional kimberlite pipes. The project was prematurely abandoned when a lab returned negative results from +/- 20-kilogram samples of several pipes. Seven unsampled pipes, 40 additional unsampled targets and nine sampled kimberlite pipes occur within the 63 000 hectare claim block.
A sample of 21 diamonds, collected from the property by Fipke, exhibit pristine or near-pristine surfaces, suggesting a local source for the significant number of alluvial diamonds found on the claims.
More interesting is Fipke's discovery of Group I eclogitic garnets, indicator minerals that grow with diamonds, in two of the initial heavy mineral samples he collected. Group I eclogitic garnets characterize some of the largest diamond mines in the world, such as De Beers' Orapa mine in Botswana, the Robert Victor and Bobbejaan mines in South Africa, the Zagadochnaya mine in Russia, and Diamond Works' Koidu mine in Sierra Leone.
C.F. Mineral Research Ltd., the laboratory Fipke founded in his pursuit of the Ekati Diamond Mine, has developed state-of-the-art proprietary technology enabling it to accurately distinguish Group I eclogitic garnets from other eclogitic garnets, such as megacrysts and Group II eclogitic garnets, which do not grow with diamonds. This technology was unavailable to the companies previously working the area.
"We have the advantage of much more sophisticated technology than we used to find Ekati," says Fipke. "Not to mention the benefit of the data from the previous work that has been done - this is a strong shortcut to an advanced project and the basis for a new investment. This is an area with very high potential for undiscovered primary diamond deposits."
Under the terms of the agreement, Iciena can acquire a 20% undivided working interest in the project, subject to a 2% carried interest, by paying Consolidated AGX Resources Corp. $600,000 to fund an advanced exploration programme in 2002, after which Iciena will be responsible for 20% of further expenditures. A cash payment of $300,000 has been advanced in trust, with the balance due within 21 days. This agreement is subject to TSX Venture Exchange approval.
Iciena further announces it has agreed to a $1.4 million private placement consisting of 4.0 million units at $0.35 each. Each unit will consist of one common share and one non-transferable share purchase warrant entitling the holder to purchase an additional common share at $0.45 for two years. The proceeds of the private placement shall be used to fund the acquisition of the Brazilian project and general working capital. A finder's fee in cash or shares shall be payable in connection with this transaction. This private placement replaces the financing previously announced May 10, 2002. The private placement and finder's fee are subject to TSX Venture Exchange acceptance for filing.
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