Partners add ground near Beaver Lake

Vancouver – Equal partners Pure Gold Minerals (PUG-T) and Ditem Explorations (DIT-V) have staked 15,000 acres of prospective ground around their Beaver Lake diamond property in the Otish Mountains area of northern Quebec.

The new property boosts the project area coverage to more than 68,000 acres. Centered on the Beaver Lake kimberlite, where Ditem discovered four macrodiamonds, the project is located 75 km south of the Renard kimberlite discoveries recently announced by Ashton Mining of Canada (ACA-T) and Quebec government-owned Soquem. The best of these kimberlites, the Renard 2, returned 166 microdiamonds and 29 macrodiamonds.

Earlier this year, Pure Gold picked up the Tichegami property and inked a deal to earn a 50% stake in Ditem’s 164-mineral-claim Beaver Lake property. Ditem conducted an evaluation of the Beaver lake kimberlite from 1997 to 1999.

Under the terms of the Beaver Lake agreement, Pure Gold agreed to pay $70,000, issue 150,000 shares once the deal is approved and a further 150,000 shares on or before January 10, 2003. Pure Gold must also spend $500,000 on exploration over the next two years. The partners have agreed to a 50-50 split of the exploration costs over the newly staked property.

Two airborne magnetic geophysical surveys totaling 440-sq-km have been completed over the Tichegami River, and the northern portion of the Beaver Lake project. These surveys identified over 90 potential kimberlite targets that will be the focus of Pure Gold’s initial exploration programs.