DIAGNOS and First Source Resources Enter Into a $3M Services Contract
posted on Jul 17, 2008 08:44AM
DIAGNOS inc., knowledge extraction technologies
DIAGNOS inc. ("DIAGNOS" or the "Corporation") (TSX VENTURE: ADK), a leader in the use of artificial intelligence and advanced knowledge extraction techniques, and First Source Resources Inc. ("First Source") (TSX VENTURE: FSR) announced today that they have entered into a service agreement to explore an area covering approximately 37,000,000 acres or 150,000 square kilometres in central Canada, making it one of Canada's largest exploration programs. DIAGNOS will use CARDS (Computer Aided Resources Detection System) on data acquired from provincial and Canadian governments, as well as private sector data it can reasonably obtain, with the aim of identifying targets for precious and base metals.
With a complex geological evolution and a wide range of tectonic and magmatic settings, the area of interest has potential for a variety of deposit types, including: Volcanogenic Massive Sulphide (VMS) Deposits; Magmatic Ni-Cu-(PGE); Orogenic: Shear zone-hosted Au, Porphyry Cu-Au and Epithermal Au; and Sediment-Hosted Base Metal Deposits.
Under the agreement, First Source will provide certain funding and DIAGNOS will use CARDS to generate exploration targets in the area of interest. From September 2008 to May 2010, First Source will contribute $3 million towards data accumulation, analysis, property acquisition and follow-up exploration field work. First Source and DIAGNOS expect to identify up to 50 mineral exploration properties within the area of interest as a result of the program. First Source has the right to obtain a 100% interest in up to five properties of its choosing (with a 1.5% NSR interest to DIAGNOS). Each party will retain a 50% interest in all other properties identified under the agreement, and First Source will receive 80% of the proceeds from the sale of these additional properties to third parties until it has recovered its $3 million investment.
Andre Larente, Chairman and CEO of DIAGNOS said "this is an exciting time and we believe that the DIAGNOS technology can speed up the exploration process and identify high potential exploration targets. This project will be one of the largest exploration programs ever undertaken in Canada. The amount of work traditionally required to explore this large area would have been unthinkable before the DIAGNOS process and technology."
Peter Smith, President and CEO of First Source said "this is a tremendous opportunity for First Source. I feel that this agreement with DIAGNOS, with its proven track record and advanced exploration process, represents a cost-effective means of identifying highly prospective mineral targets. Through this agreement, I expect First Source to obtain an interest in a number of mineral properties far faster than it could have using traditional exploration/prospecting techniques. I look forward to working closely with the DIAGNOS team in identifying targets and developing those properties using our respective geological personnel and expertise."
The agreement is subject to each of First Source and DIAGNOS obtaining approval of the TSX Venture Exchange and First Source having completed a private placement for proceeds of a minimum of $750,000 by September 15, 2008.
About DIAGNOS inc.
DIAGNOS can count on a multidisciplinary team that includes professionals in geophysics, geology, artificial intelligence, mathematics, as well as remote sensing and image interpretation. The Corporation's objective is to develop a royalty stream by significantly enhancing and participating in the exploration success rate of mining and oil and gas companies.
About First Source Resources Inc.
First Source is a mineral exploration company headquartered in Vancouver, British Columbia. First Source's objective is to develop a balanced portfolio of properties through a combination of grassroots prospecting, property acquisition and the formation of strategic relationships. First Source currently holds a 100% interest in the Lac des Pics Property in the Province of Quebec. For further information, please refer to First Source's filings on SEDAR (www.sedar.com).
This press release contains forward-looking statements, which reflect the companies' current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the companies' ongoing quarterly filings, annual reports and other filings for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The companies disclaim any obligation to update these forward-looking statements.
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First Source Resources Inc.
President and CEO