Shear updates exploration progress in Alberta

Vancouver — Shear Minerals (SRM-V) recently halted its Birch Mountain diamond exploration program in Alberta due the removal of oil and gas company winter road systems and a warming weather trend.

Shear reports that since no kimberlite pipes were intersected on the three targets it has drilled so far, the cause of the magnetic anomalies will have to be determined by a more detailed analysis of its drill core. A number of first and second priority targets are now being considered for winter drilling next year. This summer further geological and geophysical data will be collected to aid in defining more targets.

The Birch Mountain property consists of 10 mineral exploration permits covering approximately 10 townships, located 100 km northwest of Fort McMurray.

Shear and Marum Resources (MMU-V) have fulfilled this year’s work commitment at the Birch Mountain option and have each earned a 15% stake in the property. The companies can earn up to a 90% interest (45% Shear and 45% Marum) in the property. Birch Mountain Resources (BMD-V) will retain a 10% carried interest in the project and will hold a 2% gross overriding royalty on diamond production from the property.

Moving to the highlands of north-central Alberta, the 3,200-sq.-km Fort Vermilion diamond project, held equally by Shear and Marum, was acquired on the basis of a number of favourable geological indicators. Currently diamond targets are being evaluated. Road access is good and drilling can be conducted throughout the year.

Both Shear and Marum plan to continue to define kimberlite targets at Fort Vermilion property, which will be followed by a drill program later this year.