COAL, URANIUM & OIL SANDS — Poplar forms joint venture with Dia Met Minerals

North Star Diamonds, the 65%-owned subsidiary of Poplar Resources (PPX-V), has reached a preliminary agreement to option a 70% interest in its Swedish diamond project to Kelowna-based Dia Met Minerals (DMM-T).

Under terms of the memorandum of understanding, Dia Met can acquire a 70% interest in the 1.1-million-ha project by spending $1.5 million on exploration over the next three years.

The agreement is subject to satisfactory due diligence, in which Dia Met will process 425 heavy mineral samples collected by North Star in 1998. The till samples were gathered as part of an exploration program designed to pinpoint the source of several kimberlite indicator minerals discovered in the area.