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Prima Diamond moves next door to Gahcho Kué

by Greg Klein | July 3, 2014

Called “the world’s largest and richest new diamond development project” by its owners, Gahcho Kué has a new neighbour adjacently south. On July 3 Prima Fluorspar, now trading as Prima Diamond TSXV:PMD, announced a 42,000-hectare acquisition bordering the joint venture of Mountain Province Diamonds TSX:MPV and global giant De Beers that’s scheduled for production in 2016. Prima’s Godspeed Lake diamond property sits within five kilometres of the heart of the region’s Kennady Diamond Kimberlite Cluster in the Northwest Territories.

Prima Diamond moves next door to Gahcho Kue

Prima Diamond picked up the 42,000-hectare Godspeed Lake property at a time when diamond demand is forecast
to outpace supply.

Prima considers Godspeed significantly underexplored compared to other properties in the area and plans to take advantage of geophysical advances not available during the 1990s diamond rush.

Under the 100% option agreement, Prima pays $150,000 and issues 4.5 million shares to DG Resource Management Ltd in staged amounts up to one year after TSXV approval. The vendor retains a 2.5% gross overriding royalty on all diamond production. Prima may buy two-fifths of the royalty for minerals other than diamonds for $2 million.

“Diamond exploration in Canada is attracting increased attention with world diamond supplies dwindling as several of the bigger mines decrease production while the demand for diamonds is increasing with particular growth in China and India,” said Prima president/CEO Robert Bick.

Read more about Canadian diamond exploration and mining here and here.

Disclaimer: Prima Diamond Corp is a client of OnPage Media Corp, the publisher of The principals of OnPage Media may hold shares in Prima Diamond.

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