Dianor steps up diamond search in Ontario

Diamond junior Dianor Resources (DOR-V) has picked up an option to earn into Eastmain Resources‘ (ER-T) Abitibi Extension project, north of Dianor’s Cluster project, near Kirkland Lake in northern Ontario.

Dianor can explore within an area covered by old BHP Billiton (BHP-N) airborne geophysical data. The data comprise 25,000 line km of High Sense magnetic surveys and 4,000 line km of GEOTEM III electromagnetic and magnetic surveys.

As well, Dianor can earn a half-interest in any of the 28 diamond claim groups currently held by Eastmain in the area.

Dianor plans to evaluate Eastmain’s data with an eye toward generating new kimberlite targets.

Under the option agreement, Dianor will soon issue 100,000 shares to Eastmain, and then issue 80,000 shares annually over five years. Dianor must also spend at least $50,000 per year and $500,000 over five years on exploration.

Eastmain can back-in with a 30% participating interest on any given diamond target and with a 50% participating interest in any gold or base metal target acquired by Dianor by paying its partner two times its expenditure. Dianor has an option to earn a half-interest in any diamond claim group currently held by Eastmain by spending $50,000 per claim group. Eastmain also retains a 10% carried interest to production on any mineral rights acquired by Dianor, and BHP has a 2% net smelter return royalty on any claims in the area.

Meanwhile, at the Pacaud project in Ontario’s Larder Lake area, Dianor has intersected a series of kimberlite dykes in four drill holes completed in the vicinity of a historic hole drilled by Lac Minerals in 1979. Drilling continues.

Pacaud is a joint venture created in August with Globex Mining Enterprises (GMX-T), whereby Dianor can acquire a 100% interest in the diamond exploration potential of the latter’s claims in Pacaud Twp.

In the past couple of years, Dianor’s primary diamond exploration focus has been on its numerous prospects in Quebec’s James Bay region (T.N.M. Oct. 10-16/03).

In early October, 11 Quebec-based investors topped up Dianor’s till to the tune of $1.1 million by obtaining almost 6 million units priced at 18 apiece. Each unit consists of one flow-through share and one warrant that allows the holder to buy another share for 28 until April 7, 2004, and for 40 thereafter until April 7, 2005. The shares and warrants are subject to a hold period that expires on Feb. 8, 2004.

Including the private placement, there are now 56.9 million outstanding Dianor shares.