Indicator Minerals options Barrow project to Diamonds North Resources
Indicator Minerals Inc. (TSX VENTURE:IME) today announced that it has entered into an option agreement with Diamonds North Resources (TSX VENTURE:DDN) on the Barrow Diamond Project in Nunavut Territory, Canada. Under the terms of the agreement Diamonds North can earn a 60% interest in the project by spending $Cdn 2,000,000 over five years.
“We are eager to see the Barrow Project advanced,” says Bruce Counts, President and CEO of Indicator. “There is strong technical evidence to suggest that there are significantly diamondiferous kimberlites on the project and Diamonds North has successfully refined their approach to exploration and discovery in the area through their experience on the adjacent Amaruk Project. We anticipate the application of that region specific knowledge will expedite exploration of the Barrow property.”
The Barrow Project includes more than 72,000 acres of mineral claims and is located approximately 15 kilometres south of the tide water community of Kugaaruk in Nunavut Territory. Since 2005, Indicator has collected extensive exploration data on the property and discovered a kimberlite boulder that yielded 176 diamonds from 25.5 kg of rock. Hunter Exploration has a 20% interest in the Project.
Diamonds North has the option to earn a sixty (60%) per cent interest in any diamond discovery on the Barrow Property by incurring C$2,000,000 in expenditures on the Property by December 31, 2016. Exploration costs in excess of minimum obligations incurred in any year may be carried over to subsequent years. To earn a 51% interest, Diamonds North must incur an aggregate of $1,000,000 in exploration expenditures by December 31, 2015 of which $50,000 must be incurred before the end of 2011. Diamonds North can earn an additional 9% interest (for 60%) by incurring an additional $1,000,000 in expenditures (for aggregate of $2,000,000) by December 31, 2016.
Indicator also today announced that it has formally terminated its Letter Agreement with Rio Verde Enterprises on the Colombian Emerald Project.
About Indicator Minerals:
Indicator Minerals Inc. is a leading Canadian exploration company focused on the discovery and development of economic mineral deposits. The company has assembled one of the most qualified technical teams in worldwide exploration to focus on advancing its early-stage Mohave Copper Porphyry project in north-western Arizona. This under explored and largely untested project has a compelling copper, molybdenum and silver footprint with a coincident IP anomaly indicative of a large Copper Porphyry system.
Indicator Minerals Ltd. is a member of the Discovery Group of companies, for more information on the group visit www.discoveryexp.com.