Diamond Fields International Ltd. has entered into an agreement with DFI Inco Ltd. and Nuna Minerals A/S whereby Inco may earn an interest in exploration licences previously optioned by Diamond Fields from Nuna on Ammassalik Island in east Greenland. These properties are adjacent to the Diamond Fields licences optioned by Inco under a recent agreement, reported in Stockwatch on June 2, 2005.
Announced in July, 2004, Diamond Fields’ prior agreement with Nuna granted Diamond Fields the option to earn a 65-per-cent interest in its Ammassalik nickel exploration properties by making exploration expenditures of $1.7-million (U.S.) over three years. The new agreement modifies these terms to grant Inco the option to earn a 51-per-cent interest in up to 160 square kilometres of the property by spending at least $500,000 (U.S.) on the property by Dec. 1, 2007. Inco is also granted a second option, such that if it spends a further $500,000 (U.S.) (for a total of $1-million (U.S.)) by Dec. 1, 2007, it can earn its 51-per-cent interest in the full 403 square kilometres. In either case, the remaining 49-per-cent interest in the property would be shared by Diamond Fields and Nuna, with each retaining 24.5-per-cent interests.
The Ammassalik nickel project has been explored by Diamond Fields since 2003, resulting in anomalous nickel showings over a wide area. The discovery showing, on the south coast of Ammassalik Island near Tassilaq, is similar to the ultramafic-hosted Thompson nickel mineralization, based on age, structural, geochemical and petrographic analysis.
President and chief executive officer of Diamond Fields, Gregg J. Sedun, said, “We are enthusiastic about our two agreements with Inco for nickel exploration in Greenland, and we believe Inco’s extensive nickel experience will greatly enhance the exploration potential of this project.”
Randal Cullen, chief geologist for Diamond Fields International, is a qualified person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamond Fields.
