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| | Tue Jul 6, 2004
Exploration Update
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| | Vancouver, BC - Diamondex Resources Ltd. (DSP-TSX.V) is pleased to provide an update on its Lena West, Kelsey and Bear Head projects, all located in the Northwest Territories, Canada (see www.diamondex.net for project locations). Other projects on which Diamondex is currently carrying out active exploration, including Kingfish, Carat, Peregrine and Heeqou, will be updated in the near future, following compilation of all geophysical and geochemical data. A corporate update is also included below.
Lena West Project, Northwest Territories
A detailed airborne magnetic survey, conducted by Fugro Airborne Surveys has recently been completed over the Lena West project area. A total of 72,700 line-kilometres of high resolution, horizontal gradient magnetics have been flown over the southern one third of the Lena West prospecting permits as well as eight selected areas outside the main permit areas, some of which were acquired by staking in early 2004. Since July 2003, a total of 136,500 line-kilometres of airborne magnetic survey data has been collected over the Lena West area. The entire survey was completed on 300 metre line spacings on east-west flight lines. A review of the 2003 airborne data and a preliminary analysis of the 2004 magnetics data has indicated over eighty (80) prospective targets ranging in size from 300 metres to greater than 1,000 metres in diameter.
The highest priority airborne anomalies will be followed up by detailed ground magnetic surveys. It is anticipated that these same targets, most of which are buried beneath a veneer of alluvium, will be tested initially with an auger drilling program designed to penetrate the unconsolidated surface sediments and extract samples for kimberlite indicator minerals (KIMs) analysis from the target horizon. The portable auger drill will be helicopter-supported, and capable of drilling depths up to 30 metres. Results from this subsurface sampling program will aid in prioritization of diamond drilling targets during the third quarter of 2004.
All microprobe analyses have now been completed on KIMs recovered from the 1,054 stream sediment samples collected during the 2003 exploration program. The analyses indicate that the pyrope garnets recovered are of lherzolitic and harzburgitic peridotite provenance, with a significant proportion of subcalcic garnets (G10s) present. Recovered kimberlitic ilmenite chemistries indicate potential for good diamond preservation conditions. A total of 5 diamonds have been recovered from the stream sediment samples collected during the 2003 exploration campaign. The largest diamond measures 1.5mm in its longest dimension, while the other four diamonds range from 0.5mm to 1.0mm in their longest dimension. Morphological studies of the KIMs indicate the presence of both primary and secondary sources with several pyrope grains exhibiting kelyphitic rims. At several sample sites, the recovered pyrope and ilmenite grains with angular surfaces suggest close proximity to source areas.
All chemical analysis and morphological studies of the kimberlite indicator minerals have been carried out at the Diamond Research Institute in Novosibirsk, Siberia, under the supervision of Dr. Nikolai P. Pokhilenko, principal consultant to Diamondex.
The 2004 summer exploration program, budgeted at $2.6 million, will consist primarily of ground geophysics (magnetics), detailed stream and till sampling, and auger drilling, which will be followed by diamond drilling. This program, operated by Diamondex personnel and assisted by Dr. Nikolai Pokhilenko and a team of six highly experienced Russian geoscientists, will commence approximately July 12, 2004.
Since March 2004, $950,000 has been expended on exploration on the Lena West project, with a total 2004 planned budget of approximately $3.5 million. Since exploration commenced in late 2002 in the Lena West area, approximately $3.7 million has been spent by Diamondex, mainly on airborne geophysics, stream sampling and land acquisition.
The Lena West project area, comprised of 139 prospecting permits and 37 mineral claims totaling 6,166,109 million acres, is centred approximately 900 kilometres northwest of Yellowknife and 200 kilometres southeast of Inuvik, Northwest Territories. The Lena West project is 100% owned by Diamondex.
Kelsey Project, Northwest Territories
A detailed magnetic survey (MIDAS), conducted by Fugro Airborne Surveys at 50 metre line spacings, has been completed over a prospective corridor within the Kelsey joint venture project area (Diamondex 67.34%, Majescor 32.66%). A total of 2,793 linekilometres of airborne Mag/EM has identified several high priority targets within the property area. These targets are in addition to four (4) targets followed up during the spring exploration program by ground geophysics (magnetics, resistivity and gravity) which were identified from an airborne geophysical survey conducted in 2000.
A detailed till sampling program has commenced with approximately 450 samples to be collected over the entire property. The majority of the samples will be collected from previously identified geophysical anomalies and KIM delineated targets. The budget for the 2004 geophysical surveying and till sampling program is approximately $660,000. An additional $265,000 has been budgeted for diamond drilling to test several of these high priority targets during the latter part of the third quarter.
A total of 11,843 line-kilometres of detailed airborne geophysics and 865 till samples have been collected from the Kelsey joint venture property at a total expenditure of $1.8 million since June 2000.
The Kelsey property, comprised of 75 mineral claims totaling 187,384 acres is located 300 kilometres northeast of Yellowknife, Northwest Territories. This property is located on the eastern boundary of the Gahcho Kué project held by De Beers Canada Mining Inc. and Mountain Province Mining, where eight diamondiferous kimberlites have been discovered.
Bear Head Project, Northwest Territories
Fugro Airborne Surveys has recently completed a detailed airborne magnetic survey (MIDAS) over selected geophysical targets within the Bear Head project area. A total of 5,022 line-kilometres of surveying on 50 metre line spacings was conducted as a follow-up to an 8,690 line-kilometre Mag/EM (Fugro/Dighem) survey flown in 2001 and 2003. A total of 16 high priority targets identified from the 2003 airborne survey were followed up by detailed ground geophysical surveys (including mag, resistivity, and gravity). During the same period, 191 till samples were collected under a winter auger and surface sampling program. These samples are currently being analyzed for kimberlite indicator minerals. An additional 410 till samples will be collected during the summer sampling program as a follow up to several significant kimberlite trains which have recently been identified within the property. A drill program to test high priority geophysical and/or geochemical targets is expected to be carried out during the latter part of the third quarter, following further delineation from the current exploration program. A budget of $725,000 for sampling, geophysics and drilling has been allocated for the Bear Head project. Since Diamondex acquired the Bear Head project in 2001, a total of $2.4 million has been expended on the property to March 31, 2004.
The Bear Head property is located 220 kilometres northeast of Yellowknife, Northwest Territories. This property adjoins the southern boundary of the Camsell Lake property, which hosts the Snap Lake diamond deposit of De Beers Canada Mining Inc. De Beers has recently been issued all its permits to place the Snap Lake deposit into production, at an estimated capital cost of $490 million. The Bear Head property totals 252,766 acres and is 100% owned by Diamondex.
Corporate Update
The Company is pleased to announce the appointment of Mr. Lon Shaver to the position of Chief Financial Officer. Mr. Shaver brings over 12 years of mining and financial experience, having previously held positions as Chief Financial Officer with a technology company, as well as a mining analyst and corporate financier with three major brokerage firms. Mr. Shaver replaces Mr. J. Christopher Mitchell who recently accepted the position as President at a junior gold exploration company.
At the Company's Annual General and Extraordinary Meeting, held on May 27, 2004, Mr. Randy Turner and Mr. Mike Muzylowski were appointed to the Board of Directors for a further three year term. In addition, the shareholders of the Company approved an amendment to the Company's Incentive Stock Option Plan, such that the maximum number of shares that may be the subject of options at any given time be increased from 6,000,000 to 8,000,000 shares. Subsequently, the Company has granted incentive stock options to directors to purchase up to 870,000 common shares. The options will be granted for a period of five (5) years commencing June 29, 2004, exercisable at a price of $0.80 per share.
Miscellaneous
Diamondex holds a very large and prospective portfolio of diamond exploration properties in the lower Mackenzie River area and the southern Slave Province of the Northwest Territories, the Melville and Boothia Peninsula areas, as well as the Coronation Gulf district of Nunavut and northern Quebec. The company holds up to a 100% interest in 7.75 million acres comprised of 17 diamond properties.
David Clarke, P.Geol., M.Sc., Vice President of Exploration for Diamondex Resources Ltd. is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamondex Resources Ltd.
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DIAMONDEX RESOURCES LTD.
"Randy C. Turner"
Randy C. Turner, President
For further information, please contact Diamondex via telephone at
Tel: 604-687-6644 or via E-mail at diamonds@diamondex.net
Diamondex Resources Ltd., P.O. Box 11584, 1410 - 650 West Georgia Street, Vancouver, B.C. V6B 4N8
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. |
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