Northern Empire, Stornoway add to holdings

Under a cloak of secrecy, partners Northern Empire Minerals (NEM-V) and Stornoway Ventures (SWV) have acquired two properties totalling more than 4,000 sq. km in northern Canada.

Northern Empire President John Robins would not disclose the location of the properties, nor would he elaborate on the regional sampling results that prompted the joint venture to option a collective 70% interest.

Northern Empire and Stornoway optioned the properties from a non-arm’s-length private company, Hunter Exploration Group, which Robins partly owns. It is known, however, that the group recently staked 4,000-sq.-km in claim groups on Melville Peninsula, on the mainland of Nunavut.

The two Northair Group companies can each earn a 35% interest in the Aviat North and South properties by spending a total of $2 million on exploration before Oct.1, 2005. The Hunter Group retains a 30% interest, including a 10% carried interest through to production.

In addition, Northern Empire and Stornoway will reimburse Hunter for some $135,000 in out-of-pocket costs, issue 50,000 shares each, and pay a total of $125,000.

Robins says the properties have been a work in progress for the Hunter Group for several years. Both Stornoway and Northern Empire agreed to option the properties based on regional kimberlite indicator mineral chemistry and favourable geology.

“It’s in a part of the country that has not been explored for diamonds,” he said. “It’s an area that, based on what we see, clearly demonstrates potential.”