Noble Peak buys into South African properties

Mountain Lake Resources (MOA-V) has agreed to deal a 50% option in a subsidiary to Toronto-based Noble Peak Resources (NPK-A).

The chief assets of the subsidiary, South African-based Mountain Ash, are prospecting and mining rights to 10 diamond properties in the Ventersdorp diamond district of South Africa, including three farms that together hold a delineated gravel resource of 20 million tonnes containing 320,000 carats of diamonds.

In 1994, Bulk sampling and processing of 6,000 tonnes of gravel by Mountain Lake on the Nooitgedacht farm returned 99.71 carats, for a grade of 1.66 carats per 100 tonnes. The average size of the stones was 1.5 carats, and they sold for an average of US$493 per carat. Noble Peak intends to conduct additional bulk sampling on those farms to confirm grade and value.

In order to earn its interest, Noble Peak must spend $1 million on exploration by the end of the year and issue 100,000 shares to Mountain Lake. Either company can increase it stake in the project by funding the majority of development costs.

Noble Peak is currently conducting its due diligence review of the properties.