TRIGON EXPLORATION CANADA LTD.
Transmitted by CNW Group on : October 5, 2006 07:00
Trigon and De Beers Sign Option Agreement to Explore In the James Bay Lowlands of Northern Ontario
KELOWNA, BC, Oct. 5 /CNW/ - Trigon Exploration Canada Ltd. (TSXV: TEL)
("Trigon") announced today that it has signed an Option and Joint Venture
Agreement (the "Agreement") with De Beers Canada Inc. ("De Beers") that allows
De Beers, by sole funding $4.8-million of exploration expenditures, to earn a
60-percent interest in Trigon's Weiland diamond project in the James Bay
Lowlands of northern Ontario. Trigon will operate the project for the duration
of the option period.
The Weiland project is located in an area where several diamondiferous
kimberlite pipes were discovered in the mid-1990s. Earlier this year, Trigon
flew approximately 23,000 line-kilometres of low-level, high-resolution
airborne magnetics over a portion of the project area using proprietary
methods. Results from this effort led to the staking of numerous high priority
kimberlite targets.
Trigon's President and CEO Sidney Himmel stated: "We are very excited to
be working with De Beers, the most experienced diamond explorer in the world
with over 220 kimberlites discovered in Canada by De Beers and joint venture
partners. De Beers' nearby Victor diamond mine is under construction and will
produce some of the highest quality diamonds in the world. We believe strongly
in the potential for additional economic diamond deposits in the Superior
craton, particularly in the James Bay Lowlands, and believe that our combined
technical and operational skills provide us with excellent chances for
discovery".
De Beers has committed to incur exploration expenditures of $1.3-million
at Weiland by June 30, 2007. Subsequently, De Beers has the option to acquire
a 51-percent interest in the project by sole funding an additional
$2.7-million before June 30, 2009. Upon exercise of the option, a joint
venture will be formed. De Beers may then increase its joint venture interest
to 60-percent by sole funding an additional $800,000 in exploration
expenditures.
The Agreement is subject to the approval of the Boards of Directors of
both Trigon and De Beers.
About Trigon Exploration Canada Ltd.
Trigon Exploration Canada Ltd. is a uranium exploration and development
company focused on the exploration and development of uranium deposits in the
Unites States south west, a region that has produced over one billion pounds
of uranium. Trigon has a highly qualified team of uranium exploration experts
to direct exploration at the Marysvale and Henry Mountains projects of Utah,
and elsewhere in North America. Trigon also operates a portfolio of high
potential diamond exploration properties within a wholly owned subsidiary,
Trigon Diamond Corporation Ltd. There are 34,905,919 shares outstanding.
Should you wish to receive Company news via email, please email
ana@chfir.com and specify "Trigon News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This release
includes certain statements that may be deemed "forward-looking statements".
All statements in this release, other than statements of historical facts,
that address future developments that the company expects to occur, are
forward-looking statements. Although the company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to differ
materially from those in forward looking statements include market prices,
exploitation and exploration successes, and continued availability of capital
and financing and general economic, market or business conditions. Investors
are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from
those projected in the forward-looking statements. The Company does not assume
any obligation to update or revise its forward-looking statements, whether as
a result of new information, future events or otherwise.
%SEDAR: 00021118E
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/For further information: please visit www.trigonexploration.com or
contact: Sidney Himmel, President and Chief Executive Officer, Trigon
Exploration Canada Ltd., Tel: (250) 317-3624, Email:
sidney.himmel@trigonexploration.com; Jeanny So, Broker Relations Specialist,
CHF Investor Relations, Tel: (416) 868-1079 x225, Email: jeanny@chfir.com/ |
