A letter-of-intent agreement sets the stage for Northern Abitibi Mining (NAI-A) to earn up to a 50% participating interest in a land package in the Keroane diamond district of Guinea, West Africa.
The company can earn the interest from a local company by spending $1.6 million on exploration by July 31, 1998, and issuing 1 million of its shares.
The district contains several small diamond mines, as well as some diamond exploration projects operated by Canadian junior companies.
Northern Abitibi’s land package was previously explored by the Russians for both diamonds and gold. The company intends to expand a small alluvial diamond operation on a portion of the project area. It will also complete a bulk sample to test the area for its commercial diamond and gold potential.
At the same time, an exploration program will evaluate priority areas that are considered prospective for alluvial diamond and gold deposits, kimberlite pipes and dykes, and gold in bedrock sources. The program is expected to get under way early next year.
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