Canabrava joins Majescor in Quebec (December 06, 2001)

Canabrava Diamond (CNB-V) has signed a deal to earn a 50% interest in Majescor Resources‘ (MAJ-V) Mistassini project near the Otish Mountain region in Quebec.

Under the deal, Canabrava can earn its stake by spending $1.35 million on exploration over three years, paying $25,000 and issuing 100,000 shares to Majescor. Majescor will act as operator of the project. The agreement is subject to regulatory approval and the shares issued to Majescor will have a one-year hold period.

Encompassing 1,216 sq. km, the property stretches from the northern tip of Lake Mistassini to the western limit of the Otish Mountains. Staking of another 494 sq. km still requires the approval of the Ministry of Natural Resources Quebec.

Reconnaissance sampling by Majescor this year has turned up several kimberlite indicator mineral dispersion trains on the claims. The company says that the trains have a different chemistry and assemblage, and therefore source, than those at the Portage property also in Quebec. BHP Billiton (BHP-N), which recently completed an 8,500-line-km airborne geophysical survey, can earn up to a 56% interest in the Portage project by funding all costs through to production.

Adjacent to the Portage property and about 85 km north of Mistassini, joint venture partners Ashton Mining of Canada (ACA-T) and Soquem recently discovered a second kimberlitic rock.

Less than 5 km east of Mistassini, macrodiamonds have been recovered form the Beaver Lake kimberlite.