Trigon selling diamond assets to Diamondex (June 08, 2007)

Vancouver – Deciding it prefers its recent move into uranium versus gems, Trigon Uranium (TEL-V, TELWF-O) has inked a deal to sell its diamond exploration portfolio to Diamondex Resources (DSP-V).

For the basket of properties, Diamondex is paying just over $3.2 million comprised of a non-refundable $25,000 cash deposit and 6.4 million shares. On July 15th should the shares trade below 50 apiece on a 30-day average basis, Diamondex will issue additional shares (to a maximum of 3.6 million) to balance the difference.

Trigon has spent about $11 million in exploration on its diamond portfolio of six projects located in northern Ontarios James Bay Lowlands and the Slave and Rae cratons in the Northwest Territories and Nunavut.

The Weiland project, a 40-60 joint venture with De Beers Canada, is situated in the Kyle Lake kimberlite cluster in the James Bay Lowlands and is about 120 km west of the majors Victor project. Trigon also has more than 16,000-sq. km of claims in northwestern Ontario, its Viking property, where it has collected a number of kimberlite indicator minerals showing a possible near-by source.

Trigon also holds 46.79% of the RAM and SHU properties, located about 140-km northeast and 120-km east of Yellowknife respectively, in a joint venture with Stornoway Diamond (SWY-T, SWYDF-O) that holds 53.21% interest. The partners have been exploring potentially favourable regions of thick lithospheric crust and possible source areas of mantle-derived indicator minerals.

Southeast of Kugaaruk in Nunavut, Trigon holds the IC project (a 46.67%-53.33% JV with Stornoway) and the TIM property that is a 51%-49% JV with Committee Bay Resources (CBR-V, CBYRF-O).

The intention is that the entire (Trigon) diamond team will be moving with the assets, explained Sidney Himmel, Trigon Uranium president and CEO.

The property acquisitions will further bolster Diamondexs large portfolio of diamond projects in the Northwest Territories, Nunavut, Saskatchewan and Alberta.

I would be particularly excited about Diamondex because what you have now is a couple of famous mine finders (Randy Turner and Ray Ashley) in there. I think you have one of the top diamond exploration companies in Canada, continued Himmel.

Trigon moved into uranium exploration in early-2006 acquiring a number of advanced projects in Utah.