Shares in Diamond Fields International (DFI-T) were 7.5, or nearly 21%, higher at 43.5 in late-afternoon trading in Toronto on June 2, after the company said that Inco (N-T) would take a 65% stake in the Ammassalik Island nickel project, off of Greenland’s east coast.
The nickel giant can earn its interest by spending up to US$3 million on the property by the end of 2008. Initial work under the agreement is planned for this summer.
DFI recently announced the cancellation of outstanding royalty obligations on various properties, including the Ammassalik properties, something the deal with Inco required. Vendor Jean-Raymond Boulle, also DFI’s largest shareholder, held the royalties.
Initial chip sampling on the nickel discovery averaged 1% nickel, 0.3% copper, plus minor precious metal values. Two years of exploration by DFI has outlined anomalous nickel showings over a wide area.
DFI says geochemical and petrographic studies suggest that the discovery is similar to nickel mineralization found in both the Raglan and Thompson nickel camps in Canada.
Diamond Fields sold the giant Voisey’s Bay nickel project in Labrador to Inco for around $4.3 billion in 1996.
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