FOR: CANABRAVA DIAMOND CORPORATION
CDNX SYMBOL: CNB
AND PARAMOUNT VENTURES & FINANCE INC.
CDNX SYMBOL: PVF
DECEMBER 18, 2001 - 09:01 EST
Canabrava Diamond Corporation And Paramount Ventures And
Finance Inc.: Drilling Underway On The Groundhog Project,
Ontario
VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation
(CNB-CDNX) and Paramount Ventures & Finance Inc. (PVF-CDNX)
announce that drilling is underway on the Groundhog Project in
northern Ontario. Twenty-five of the highest priority targets
have been slated for drill testing between now and the end of the
first quarter of 2002. Drilling will continue until December 22nd
when crews are scheduled to demobilize for a short break until
January 3, 2002. Plans are also underway to commence a first
phase drilling program on the Ontario JV with Kennecott in
February 2002. It is anticipated that the two programs will run
concurrently until ice-breakup in early April.
Over the past two months, follow-up investigations have been
completed on 44 of the best targets identified from the fall
airborne geophysical campaign on the Groundhog Project. Ground
geophysical grids have been surveyed over sixteen targets and
high-resolution helicopter geophysics completed over a further
twenty-eight targets. These surveys consisted of individual
one-by-one kilometre blocks over each target flown at 50-metre
line spacing with a 25-metre terrain clearance. The helicopter
program comprised a total of 656 line kilometres and results have
been excellent.
The Groundhog Project comprises the area located between the new
and old areas of interest on the Kennecott Option Agreement, and
includes most of the areas covered by the former KAP Project and
parts of the former Rocky Island Lake Project area. Canabrava is
the operator of the Groundhog Project. The Project is held 50:50
between Canabrava and Paramount, but Paramount's interest is
currently being reduced according to a straight-line dilution
formula. Kennecott retains the right to a 1.5% Gross Overriding
Royalty, capped at $10 million on any discovery made on the
Project prior to June 30, 2003.
Canabrava Diamond Corporation is actively exploring for diamonds
in Brazil and Canada both independently and through major joint
ventures with Kennecott Canada Exploration Inc., Navigator
Exploration Corp., and Paramount Ventures and Finance Inc. The
Company is 45.6% owned by Southwestern Resources Corp. (SWG-T).
Paramount Ventures and Finance Inc. is an exploration company with
diamond projects in Canada.
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