Jan 15, 2002
Kermode expands Quebec interests by acquiring ground in Canada's New Diamond District -- The Otish Mountains Area.
Kermode Resources Ltd. has joined the rush to find diamonds in Canada's latest hot staking spree in the Otish Mountains area of Quebec. The rush was ignited in mid-December by Ashton Mining of Canada's announcement of a significant new diamond discovery. Ashton announced that both of its recently discovered kimberlites in the area are diamondiferous. Especially significant is that one of the pipes, Renard 2, contained three large macro diamonds that potentially signals a new Canadian Diamond District in the Otish Mountains area containing high-grade diamond pipes.
Kermode has purchased a 100% interest in two claim groups totalling about 22,000 acres (8,840 ha), subject to a 2% net smelter/gross overriding royalty, for a cash payment of $28,000 and the issuance of 200,000 shares over a twenty four month period. As a result of the intense staking rush still in progress confirmation of title has not yet been received from the Quebec government but is expected shortly.
Kermode's 9,000-acre Chelsea property is about 35 km E/NE of Ashton's Renard 2 pipe and the 13,000-acre Emma property is about 50 km W/SW of the Renard 2 pipe. Both properties directly adjoin the BHP/Majescor joint venture. The two properties together with several geophysical targets on Ashton's property and Ashton's Renard 2 pipe all lie on an E/NE to W/SW linear corridor which parallels several prominent magnetic dikes in the area.
Kermode's board of directors has significant diamond exploration experience. Directors Don Moore and Neil Briggs have discovered and explored kimberlites in Botswana and South Africa. Director Russ Birrell developed a new MMI geochemical method designed to discover and delineate kimberlite occurrences.
Kermode's plans include a high-resolution magnetic survey over its two properties with a follow up program of soil geochemical surveys.
ON BEHALF OF THE BOARD OF DIRECTORS
"Donald G. Moore"
Donald G. Moore, President
No Stock Exchange Has Approved or Disapproved The Information Contained Herein