Lac de Gras work fails to find source

Drilling on a property held by Geodex Minerals (GXM-V) in the Lac de Gras region of the Northwest Territories has determined that a prominent circular magnetic feature was not caused by a kimberlite intrusive.

The Canadian exploration division of De Beers tested the geophysical anomaly with a single hole to a depth of 119 metres; the hole cut only metasedimentary rock. Magnetite in the metasediments is believed to be responsible for the geophysical feature.

The Lac 1-5 property is on the western side of Lac de Gras, 30 km west of the newly built Diavik diamond mine. Geodex acquired the property in April 2002 in exchange for $30,000 cash and 100,000 of its shares. The property is subject to a 4% gross overriding royalty, of which 1% is held by GGL Diamond (GGL-V).

De Beers Canada Exploration struck a joint-venture agreement with Geodex in April of this year and can earn an initial 51% by spending $500,000 on exploration before the end of 2005. De Beers can tack on an extra 10% by incurring $3 million in additional exploration expenditures before Dec. 31, 2007. Should De Beers elect to fund mine construction on the property, its interest would rise to 70%.

Last fall, Geodex conducted till sampling on the 87-sq.-km Lac 1-5 claims. Eighty-five heavy mineral samples were collected in order to define anomalous tills taken by a previous operator. The new samples were dug at approximately 250-metre intervals on lines spaced 2.5 km apart.

The Saskatchewan Research Council processed the samples and found 45 of them contained at least one kimberlite indicator mineral grain. One sample contained six pyrope garnets alone.

In total, 104 recovered pyrope grains were analyzed by R.L. Barnett Geological Consulting. Microprobe work determined that 17 of the grains are favourable G10 pyrope garnets. The till samples were also found to contain 19 chrome diopside grains.

De Beers is reviewing the results of till sampling done to date on the property.