De Beers Canada, Majescor Sign Hardy Lake Option

De Beers Canada announced today (Thursday) that it has signed up an option agreement with Majescor for its Hardy Lake property, located 350 km N-NE of Yellowknife on the Slave craton.

The property consists of 34 leases covering 320 sq km and seven claims covering 72 sq km. The property contains 25 known kimberlites, mainly pipes, ranging in size from   0.2 Ha to over 5 Ha. Seventeen of the 19 kimberlites tested for diamonds are diamondiferous. There are approximately 10 drill-ready geophysical targets and unexplained strong indicator mineral dispersion trains.

“In response to the growing demand for diamonds, De Beers Canada is advancing projects as quickly as possible. One way to achieve this is to partner with exploration companies to facilitate development. Majescor has proven diamond exploration skills and we are pleased that they approached us about taking this property forward," said Richard Molyneux, President and CEO of De Beers Canada.

In terms of the agreement, Majescor can purchase a 100% interest in the Hardy Lake property by spending $10,000,000 over the next five years. Expenditures over any given year must not be less than $1,000,000. Majescor must issue 400,000 shares to De Beers within 30 days of signature and a further 400,000 within 180 days of signature. De Beers retains back-in rights exercisable any time before a decision is made to mine.