While we sit and wait, here is a release from GMD Resources JV with Monopros...
GMD RESOURCE CORP.
Suite 1650 - 999 West Hastings Street,
Vancouver British Columbia V6C 2W2
Telephone: (604) 662-3350 Facsimile: (604) 669-1605
Toll Free: 1-800-808-3350 E-mail: rduncan@helinet.com
VSE Symbol - "GMD"
U.S. 12g3 Exemption #82-4071
News Release No. 211
June 16, 1999
NEWS RELEASE
JV Agreement with Monopros on the Royce Group Diamond Project, NWT
Plus Private Placement Funding with Monopros
GMD Resource Corp. (the "Company") today announced that, subject to regulatory approval, it has entered into an agreement with Monopros Limited, a wholly-owned subsidiary of De Beers Consolidated Mines Limited on the Company's 499,416 acre Royce Group Diamond Property, NWT. The Royce Group Diamond Property is located 150 km North Northwest of Yellowknife. A thorough review of all kimberlite indicator mineral geochemistry, indicator mineral dispersion trains and geophysical targets developed by GMD, primarily over the past year, were deciding factors in the Monopros decision to enter into an agreement.
The terms of the agreement provide that Monopros, as operator, may earn a 51% interest in the Royce Group Diamond Property by incurring not less than $16,000,000 in four sequential programs by April 30, 2004. The four stage work programs, which are results dependent, are designed to progressively advance the property and will include expenditures on additional reconnaissance sampling, geophysics, drilling, and if warranted, mini-bulk sampling, macro diamond sample processing through a dense media separation plant and delineation drilling. Operatorship of the Property will be assumed by Monopros effective immediately.
The Stage 1 program will commence in June, 1999 and will consist of additional reconnaissance till sampling (up to 2,000 samples), processing and sorting of samples and microprobing of positive grains, glacial sediment mapping, helicopter geophysics (combined Mag/EM) over approximately 2,000 line kilometres of selected targets plus drilling of up to 10 holes of 200 metres each with follow up micro diamond assay ("MIDA") analysis of any kimberlites. The Stage 1 work program is to be completed by April 30, 2000 at an aggregate cost of not less than $1,500,000.
Upon completion of the Stage 4 work program Monopros and GMD shall form a Joint Venture and the participating interests will be 51% Monopros and 49% GMD. Should a Joint Venture be formed upon completion of the Stage 4 work program the agreement provides, among other things, for the establishment of a Management Committee, funding of the Joint Venture, dilution should either party fail to contribute and repayment of project cost allocations. The Stage 5 program will consist of the completion of a full feasibility study the cost of which shall be borne by Monopros. Upon completion of Stage 5 Monopros shall acquire an additional 9% participating interest such that the participating interest of Monopros shall be 60% and that of GMD 40%.
The Company reports that, subject to regulatory approval, Monopros Limited has entered into a private placement funding of 250,000 units at $0.70 per unit with each unit consisting of one share and one share purchase warrant. Each share warrant shall be exercisable by Monopros into one additional share of the Company at a price of $0.81 per share at any time during a term of two years from the closing date of the placement. The $175,000 proceeds will be applied to working capital.
GMD has been progressively developing the Royce Group Diamond Property since 1996. As previously reported the Company completed in August, 1998 a 13,650 line kilometer magnetic and electromagnetic geophysical survey. This survey identified 72 geophysical anomalies as prospective kimberlite bodies. Of these anomalies 21 have been ranked by GMD as priority targets and are classified as "B-" or better. All the priority geophysical targets fall under lakes some of which are well defined topographic anomalies (circular lakes with steep sides). A follow up down ice sampling program for kimberlite indicators was also completed in 1998 with 93 samples collected to further test the prospectivity of 14 of the top ranked 21 anomalies and to confirm the indicator mineral anomalies developed from previous programs. The samples were treated by Kennecott's Thunder Bay laboratory and the heavy mineral concentrates were treated for mineral selection by Lakefield Research with microprobe analysis of selected grains conducted by R.L. Barnett Geological. The data indicates that to date four distinct diamond indicator mineral dispersion trains exist on the property. Based on the sampling, the microprobe results, which confirmed the presence of anomalous concentrations of indicator minerals immediately down ice from the selected airborne geophysical anomalies, the mineral chemistry which identified specific mineral populations from separate sources, concentrations of indicators per sample and the physical locations of anomalous samples within the dispersion trains all confirm and support the interpretation that multiple sources of kimberlite exist for these trains.
The directors of GMD are very pleased to have the added experience of Monopros/De Beers directed toward the further exploration and development of the Royce Group Diamond Property.
For further information please contact Investor Relations at (604) 669-6619 or 1-800-808-3350.
GMD RESOURCE CORP.
"Rodney N. Duncan"
Rodney N. Duncan
President |
