Nevsun and African Metals bundle properties

Nevsun Resources (NSU-T, NSU-X) and African Metals (AFR-V) are pooling their interests in five diamond concessions in western Mali in an effort to make a more attractive bundle to possible joint venture partners.

The two companies, both more interested in developing gold projects in the region, are looking to turn the properties over to a company that specializes in diamond exploration.

The deal will give African Metals a 100% interest in three diamond concessions: the Kenieba Nord, Kenieba Sud and Soumala covering a total of 5,112 sq. km., and it will hold a 95% interest in the Medinandi Sud concession, which is 2,106 sq. km.

Nevsun will get a 100% interest in the Dar Salam concession which covers 175 sq. km.

If an economic diamond pipe is found on any of the concessions, the deal allows for some sharing of royalties. The holder of the concession would take 95% of royalties and net profits while the other party receives the remaining 5%.

The Kenieba region where Nevsun operates its Tabakoto gold mine and African Metals has exploration projects — has been known to be a diamondiferous province since initial exploration began in the 1950’s.

Nevsun says that 23 known kimberlitic pipes and seven known diamondiferous pipes are held by African Metals and Nevsun.

Recent exploration activity by Nevsun has identified two new kimberlite pipes.

Thus far, 95 diamonds have been recovered from both alluvial and bulk sampling of kimberlite pipes in the area — 19 are micro-diamonds and 74 are macro-diamonds of which 21 diamonds have been one carat or greater.

The Nevsun and African metals concessions have been responsible for the recovery of 11 diamonds ranging from 30 to 232 carats.

Vancouver-based Nevsun is an exploration and development company operating in Mali, Eritrea and Ghana.

The company says that the parceling off of diamond concessions would allow it to focus on the operation of Tabakoto and the completion of its feasibility study for its Bisha gold, copper and zinc project in Eritrea which should be finished by the third quarter of this year.

In Toronto on July 5, Nevsun was off roughly 1% or 4 to $3.23 on roughly 150,000 shares traded. African Metals’ shares were unchanged at 60 with no volume.