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CH Diamond Project Exploration and Option Agreement
Feb 16, 2009 03:21AM
February 16, 2009
GGL Diamond Corp.: CH Diamond Project Exploration and Option Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2009) - GGL Diamond Corp. (TSX VENTURE:GGL) ("GGL") has signed an Exploration and Option Agreement with Kennecott Canada Exploration Inc. ("Kennecott") for GGL's CH Diamond Project Area ("Property") in the Northwest Territories, Canada.
GGL has granted to Kennecott the sole and exclusive right and option to acquire, subject to Royalties, a 100% interest in the Property, by incurring expenditures of $10,000,000 on or before December 31, 2016, of which $900,000 is a commitment and must be spent on or before December 31, 2011. Kennecott paid GGL $25,000 on signing and in order to exercise the option must pay to GGL additional yearly payments beginning in 2013, to total $1,000,000 on or before December 31, 2016.
If Kennecott exercises the Option, Kennecott shall pay to GGL a 1.5% Gross Overriding Royalty with respect to diamonds from the Property and a 1.5% Net Smelter Returns Royalty with respect to all ores, minerals, metals and other materials, other than diamonds.
GGL will carry out Operations under its Land Use Permit, as Kennecott may direct, until such time as the Land Use Permit is transferred to Kennecott.
GGL had previously discovered four kimberlites in the CH Project Area, one of which, the Bishop kimberlite, is diamondiferous, land based and open to extension beneath a gravity low anomaly. Many kimberlitic indicator mineral trains have been defined on the Property and drill ready targets exist for several of these trains.
The Property lies within an area measuring 60 km east-west by 80 km north-south, and starts 30 km west of the Diavik Diamond Mine. The Property contains the MacKay, Courageous, G, Seahorse/Shoe, Starfish and Bone mineral claim areas.
A review and evaluation of the exploration data on the Property is in progress.
ABOUT GGL DIAMOND CORP.
GGL is a Canadian mineral exploration company whose present focus is on its gold properties as well as copper-gold, VMS, nickel and diamonds. All of its properties are located in Canada.