Canabrava joins Majescor in Quebec (December 17, 2001)

Canabrava Diamond (CNB-V) has agreed to earn a half-interest in the Mistassini project in the Otish Mountain region of Quebec.

In return, the junior is required to spend $1.3 million on exploration over three years, as well as pay $25,000 in cash and issue 100,000 shares to Majescor Resources (MAJ-V). The latter will continue to operate the project.

Encompassing 1,215 sq. km, the property stretches from the northern tip of Lake Mistassini to the western limit of the Otish Mountains.

Reconnaissance sampling by Majescor turned up several kimberlite indicator mineral dispersion trains. The trains appear to 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 lies a second kimberlitic rock, recently discovered by partners Ashton Mining of Canada and Soquem. And less than 5 km east of Mistassini, macrodiamonds have been recovered from the Beaver Lake kimberlite.