CDNX Symbol - “GMD”
U.S. 12g3 Exemption #82-4071
News Release No. 241
December 17, 2001
NEWS RELEASE
GMD ROYCE GROUP CLAIMS - UPDATE
GMD Resource Corp. (“GMD”) reports that the 106 till samples collected during the period September through October, 2001 on GMD’s Royce Group Diamond Claims, NWT have been sent to Kennecott Exploration Company’ s Thunder Bay laboratory for processing. GMD’s Royce Group claims are located approximately 260 km southwest of the BHP Ekati claim block and 120 km northwest of Yellowknife. No results from these samples have been received as yet.
The 2001 sample program was designed to provide additional information in the specific regions of the heads of the previously identified indicator mineral trains. Five individual indicator mineral trains have been identified from previous work. Four of the defined indicator trains lie in the southeast area of the property near Wheeler Lake with the fifth lying 20 kilometers north near Bessonette Lake. These trains each have distinctive mineral chemistries and spatial relationships suggesting multiple sources. Indicator mineral counts are as high as 71 grains (0.3 mm – 1.0 mm) per 10 litre till sample. The mineral chemistries show G10 garnets, diamond inclusion spinels and ilmenites indicating good diamond preservation potential.
GMD also reports that pursuant to the GMD BHP Diamonds Inc. (“BHP”) Agreement (see September 24, 2001 news release), BHP has completed its Falcon Gravity gradiometer airborne survey of 3,500-line km of the Royce Group Property at 100m line spacing, covering that portion of the claims that contain the five individual indicator mineral trains. Interpretation of the Falcon survey results is scheduled for mid January 2002. Once the Falcon Gravity survey results have been analyzed and GMD’s fall 2001 till sample data has been integrated the merits of a late February/March 2002 ground magnetic/electromagnetic survey will be reviewed for purposes of better defining prospective drill targets. Based on the outcome of the data, drill targets would be prioritized for a late March/April 2002 drill program.
Pursuant to an Offering Memorandum dated November 30, 2001, the Company is offering a minimum of 1,750,000 and a maximum of 2,500,000 units at a price of $0.15 per unit relying on private placement exemptions. Each unit is composed of one share and a one-year share purchase warrant exercisable at a price of $0.20 per share. The shares are not qualified for special tax treatment and are subject to a four-month hold period from the date of issue.
The proceeds will fund the winter exploration budget, the Falcon survey and till processing program, general and administrative expenses and working capital. A copy of the Offering Memorandum can be obtained from the head office of the Company.
For further information contact Investor Relations at (250) 382-5562 or 1-800-808-3350.
GMD RESOURCE CORP.
“Rodney N. Duncan”
Rodney N. Duncan
President |
