De Beers farms out Arctic properties

In a bid to advance some of its non-core assets, De Beers Canada has optioned several properties in the Far North to a couple of juniors under separate deals.

Ditem Explorations (DIT-V) must spend at least $1 million exploring the Southampton Island properties in Nunavut over three years to earn a 100% interest. De Beers retains the diamond marketing rights and can buy back in for up to a 60% interest by reimbursing Ditem 300% of its project expenditures to that point.

Ditem signed a confidentiality agreement with De Beers in March and completed a review of De Beers’ past exploration, which included till sampling and airborne geophysical magnetic surveys at a cost of $1.3 million. The Southhampton Island properties comprise two blocks of permits covering 6,500 sq. km immediately south of the Melville Peninsula. Ditem selected the properties based on anomalous kimberlite indicator mineral chemistry.

In a separate agreement, Pure Gold Minerals (PUG-T) can earn an 85% interest in the 22,500-sq.-km Colville Lake property by spending almost $4 million on exploration over three years. The Colville Lake property is north of Norman Wells and immediately south of Diamondex Resources‘ (DSP-V) Lena West property in the Northwest Territories. De Beers conducted regional stream sampling for indicator minerals in the 1970s and returned last year to follow-up on that work.

Should a discovery be made, and should feasibility work indicate a resource or reserve of a certain value, De Beers would have the right to buy back a 70% interest by reimbursing Pure Gold 200% of its project expenditures.

Pure Gold is already on the ground at Colville, with stream-sediment and till sampling under way. An airborne magnetic survey is planned.