Band-Ore Resources Ltd. : New Diamond Discovery In Northern Ontario
BURLINGTON, ONTARIO--
Band-Ore Resources Ltd. ("Band-Ore") is pleased to announce that
it has entered into an agreement to acquire a private Ontario
company ("Privco"), which holds a license to carry out mineral
exploration activities and acquire a lease to carry out mining on
a 25 square kilometre diamond prospect in northern Ontario. The
property is subject to a 5% net sales return royalty. The property
is located in north central Ontario, near the Kapuskasing
Structural Zone (KSZ). The KSZ is a narrow, regionally extensive
northerly trending belt of high grade metamorphic rocks. The KSZ
extends from Lake Superior to James Bay and has been the focus of
exploration and scientific evaluations for diamonds for the past 8
years. The property is easily accessible year round by paved roads
and logging roads.
Pursuant to the agreement, Band-Ore has agreed to acquire all of
the outstanding shares of Privco in consideration of cash payments
totaling $1.2 million, payable over a three-year period, and the
issuance of a total of 2,000,000 common shares of Band-Ore, of
which 1,500,000 shares will be issued on closing. The closing of
the acquisition is subject to the fulfillment of a number of
conditions, including obtaining regulatory approval and the
completion of satisfactory due diligence. It is expected that
closing will occur before February 28, 2000.
Recently, Privco submitted two samples taken from the property,
weighing 63.4 kg and 70.5 kg, for caustic fusion processing and
microdiamond recovery to the laboratory of Kennecott Canada
Exploration Inc. in Thunder Bay, Ontario. According to Kennecott's
report, the 63.4 kg sample yielded a total of 45 diamonds, of
which 10 were macrodiamonds (diamonds with one dimension measuring
greater than 0.5mm), including 1 stone that measured 1.01 mm in
one dimension, and 35 were microdiamonds (diamonds with all
dimensions less than 0.5mm). The 70.5 kg sample yielded 9
microdiamonds (all dimensions less than 0.5mm). It was reported
that the stones were white in colour and transparent in clarity.
The samples were taken from 2 outcrop exposures located
approximately 0.5 kilometres apart.
Since only a limited amount of sampling and analysis was completed
by Privco, Band-Ore's qualified persons have duplicated the
sampling procedures followed by Privco, as part of Band-Ore's due
diligence investigation. These samples are being analyzed by
qualified independent Canadian and South African diamond
laboratories and diamond experts. There are no assurances that the
reported results will be confirmed.
An exploration program consisting of airborne geophysics will
commence immediately following the closing of the transaction.
Band-Ore has over $ 1.0 million in the treasury and has an
experienced and capable management and board of directors to
supervise and undertake the program.
THE PRESS RELEASE WAS PREPARED BY BAND-ORE RESOURCES LTD. WHICH
ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. NO REGULATORY
AUTHORITIES OR SIMILAR BODY, HAVE APPROVED OR DISAPPROVED THE
INFORMATION CONTAINED HEREIN.
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FOR FURTHER INFORMATION PLEASE CONTACT:
OLAV SVELA, HUME,KIERAN INC.
416-868-1079 |
