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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (78)	7/25/2002 9:50:08 AM
From: Famularo	Respond to of 16203

GMD sells Discovery project; pays settlement GMD Resource Corp GMD Shares issued 25,953,075 Jul 23 close $0.04 Wed 24 Jul 2002 News Release Mr. Rodney Duncan reports GMD Resource, further to news in Stockwatch of May 7, 2002, has fully paid the $230,000 settlement that was due to a former employee of the company. The matter resulted from the termination of the former employee's employment agreement with the company and LMX Resources Ltd. which employment agreement was terminated by the then president of the company. The company also reports that the sale of its Discovery gold project, NWT, to Tyhee Development Corp. as previously reported in Stockwatch on March 22, 2002, has completed and the company has received from Tyhee the purchase price of $265,000. The company retains a net smelter royalty over the combined Nicholas Lake property, NWT (also owned by Tyhee and in proximity to the Discovery property), and the Discovery property as follows: 0.75 per cent for the first five years or until recovery of plant capital, whichever occurs first, and thereafter; 1 per cent up to a gold price of $300.00 per ounce; 1.5 per cent from a gold price of $300.00 to $350.00 per ounce; 1.75 per cent from a gold price of $350.00 to $500.00 per ounce; and 2.25 per cent above a gold price of $500.00 per ounce. With the above settlement behind it the company will focus on its 100-per-cent-owned Royce group diamond claims, NWT. In May, 2002, the company filed an updated assessment report on the Royce group claims with the mining recorder's office, NWT. As previously reported in Stockwatch on June 21, 2002, the company's consulting geologist has provided a proposed work program and budget for the further exploration and development of the Royce group Diamond claims. The proposed work program is subject to financing. The company's Royce group claims are located approximately 250 kilometres southwest of the BHP Ekati claim block and 120 kilometres northwest of Yellowknife. 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 kilometres north near Bessonette Lake. Each train has distinctive mineral chemistries and spatial relationships suggesting multiple sources. As previously reported in Stockwatch on Dec. 17, 2001, indicator mineral counts are as high as 71 grains (0.3 millimetre-1.0 millimetre) per 10-litre till sample. The mineral chemistries show G10 garnets, diamond inclusion spinels and ilmenites indicating good diamond preservation potential. To date the various indicator mineral trains remain unexplained.