Diamond Fields International has negotiated the exclusive right to acquire a 100-per-cent interest in the Valozoro nickel deposit located in Madagascar, a deposit with a historically calculated resource of 3.7 million tonnes grading 1.75 per cent nickel for 65,000 tonnes contained nickel.
The agreement provides Diamond Fields International with a three-month evaluation period with an option for a five-month extension before committing to acquire the property. A due diligence study on the property to assess the nature and extent of the deposit will include geological, legal, development and marketing research review. The company intends to carry out further exploration in and around the area of the deposit. The initial stages of the due diligence will begin immediately, with analytical results of the mineral samples expected by the end of November, 2003. Upon exercise of the option, fieldwork will recommence following the rainy season in March, 2004. Should Diamond Fields International put the project into production, a 5-per-cent gross royalty on metal sold will be due to Jean-Raymond Boulle.
“We believe this is an exciting opportunity for Diamond Fields International and are pleased to have reached an agreement giving the company an option to acquire 100-per-cent interest in a defined nickel deposit. This further investment confirms our belief that Madagascar offers a favourable geological and political environment for mineral exploration and mine development as well as confirming our optimism in the future of nickel itself,” stated Gregg Sedun, president and chief executive officer of Diamond Fields International.
The Valozoro nickel deposit is located 60 kilometres north of the town of Fianarantsoa in south-central Madagascar and is reported in the Catalogue des Principaux Gites Mineraux de Madagascar (Catalogue of Principal Mineral Deposits of Madagascar). During 1956 and 1957, UGINE completed an extensive prospecting program and reported an estimated resource at 65,000 tonnes of a lateritic nickel metal deposit from an altered peridotite host grading 1.75 per cent nickel. These are historical resource estimates and future work is required to upgrade the estimates to comply with National Instrument 43-101 standards of disclosure.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
