Diamond Fields Resources Inc. has agreed to an eight-month extension to its co-operation agreement with TMH Acquisition Co., as announced on May 16, 2019, and amended on June 26, 2020.
The extension has been agreed due to continuing travel and operational restrictions resulting from the COVID-19 pandemic and the anticipated impact of the rainy season in Madagascar preventing the company from advancing the Beravina project in Madagascar within the expected time frame.
The agreement required DFR to undertake further exploration work (phase 1) with the aim of locating potential new mineral deposits or extensions to the existing deposit. If successful, the company has the option to engage in a drilling campaign on the project (phase 2) to delineate such deposits.
The deadline for DFR to complete phase 1 and commence phase 2 has now been extended from Sept. 30, 2020, to May 31, 2021. If work on phase 2 does not commence by May 31, 2021 (unless extended by Diamond Fields in certain circumstances), the agreement will terminate. The deadline for completion of phase 2 has been extended from Nov. 30, 2020, to July 31, 2021.
The time available for TMH to exercise its option to acquire the project as set out in the agreement has been extended from Dec. 31, 2020, to Aug. 31, 2021, which may be further extended by three months on condition of an advance payment of $250,000 (U.S.) by TMH to Diamond Fields.
All other provisions of the agreement remain unchanged.
About Beravina
The Beravina project is a hard-rock zircon deposit with a National Instrument 43-101 inferred mineral resource estimate of 1.5 million tons at 22.7 per cent zircon (ZrSiO4) equivalent to 15.3 per cent ZrO2, See the National Instrument 43-101 technical report, with an effective date of Dec. 14, 2018, and filed on the company’s SEDAR profile on Jan. 29, 2019, written by MSA Group Pty. Ltd. (Michael S. Cronwright, PrSciNat, FGSSA, John Derbyshire, PrEng, FSAIMM, Jeremy Witley, PrSciNat, FGSSA, and Andre van der Merwe, PrSciNat, MAusIMM, FGSSA), each of whom is a qualified person for purposes of NI 43-101, and independent of the company as defined in NI 43-101. The project, which covers 625 hectares, is located in western Madagascar. Results so far show that, utilizing industry standard beneficiation technologies, zircon can be concentrated to levels of between 50 per cent ZrO2 and 58 per cent ZrO2 with varying levels of thorium ingrained.
Notes to editors
Diamond Fields is a TSX Venture Exchange-listed exploration and mine development company with assets in Madagascar and Namibia. In Madagascar, DFR is developing the Beravina project, an advanced high-grade hard-rock zircon exploration prospect located in the west of the country, approximately 220 kilometres east of the port of Maintirano and near a state road. DFR acquired Beravina from Pala Investments and Austral Resources in 2016. In Namibia, the company owns several offshore diamond mining licences including the ML 111 concession which has a 10-year mining licence, effective until Dec. 4, 2025. In 2018 and early 2019 mining undertaken by a contractor on the company’s ML111 licence area produced two parcels of rough diamonds totalling 47,318.41 carats.
