Partners Lytton Minerals (LTL-T) and New Indigo Resources (NDR-A) have joined the hunt for Alberta diamonds by entering into a preliminary agreement with Birch Mountain Minerals (BMD-A) on a package of ground covering 1.9 million acres in the northeastern part of the province.
Lytton and sister company New Indigo can jointly earn up to a 60% interest in the diamond rights on the properties by making a $390,000 payment to Birch Mountain and spending $4.5 million on exploration over four years. The partners can acquire a further 15% stake by completing a bankable feasibility study.
In 1997, Birch Mountain completed a 23,000-line-km high resolution airborne magnetic geophysical survey over the northern portion of the 1.3-million-acre Athabasca permits. Analysis of the aeromagnetic data revealed a number of high-quality targets that are said to exhibit kimberlite-like characteristics. Drilling is scheduled to begin testing these targets in the first quarter.
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