Hello All
A fellow shareholder sent this. It may be of interest.
Mr. Blusson owns majority control of Archon and was the other half of the Fipke team that found the Ekati Mine. Interesting that this very knowledgable man is attracted to these claims.
Regards
****
November 20, 1998
FARM-OUT AGREEMENT
DHK Resources Ltd. ("DHK") is pleased to advise that it, Kennecott Canada
Exploration Inc. ("KCE"), Aber Diamond Mines Ltd. ("Aber") and
SouthernEra
Resources Limited ("SouthernEra") have jointly entered into a farm-out
agreement with Archon Minerals Limited ("Archon"), covering claims in
the WO
block at Lac de Gras as indicated on the attached sketch [shaded
claims are
excluded from this farm-out]. The WO block encompasses approximately
108,000 acres.
The agreement is effective the 21st day of September, 1998. The agreement
shall be in effect for a prospecting period of one year expiring on
September 20,
1999, but may be extended by one year under certain conditions.
In order for Archon to earn its 25% carried and working interest, it
must identify,
at its sole cost and risk, kimberlite targets by geophysical or other
means and
verify such targets as kimberlites by completing at least one diamond
drill hole
on each such target. As each target is identified as a kimberlite,
KCE has the
right, but not the obligation, to take over as the operator and
propose and carry
out exploration programs on these targets.
Claims surrounding the DO18, DO27 (Tli Kwi Cho), DO29, DO32, DO40, and
DO41 kimberlites, certain claims covering a group of diabase dykes,
potential or
existing indicator train occurrences, and other areas of the WO block, as
selected by KCE, are excluded from this farm-out agreement.
Also excluded from this farm-out agreement are the WI and DHK claim
blocks
(approx. 68,000 acres), which straddle Lac de Gras to the north and
south.
These claim blocks contain the WH02, DD17, DD39, and DD42
kimberlites. It is
anticipated that KCE will carry out an exploration program on these
blocks in the
1998/99 winter season to follow-up a number of indicator trains and/or
geophysical targets.
The interest in the WO claim block are currently held as follows: KCE
40%, DHK
35%, Aber 15%, and SouthernEra 10%, Archon's earn-in interest will be
contributed pro rata by each of these parties and in the case of DHK
will be
8.75%, retaining a 26.25%.
Archon under the terms of a common area agreement may be required to
assign
5% of any interest it earns to Dia Met Minerals Ltd.
DHK RESOURCES LTD. |
