(PRWEB) October 2, 2004
Geodex Minerals Ltd. (ÂGeodexÂ) is pleased to announce that it has entered into a Joint Venture agreement with Arctic Star Diamond Corp. (ÂArctic StarÂ) on Geodex's Mineral Exploration Licences 50, 75B and 96B, located 100 km east of Gillam in Northern Manitoba. The licences cover an area of approximately 91,000 hectares.
Northern Manitoba has seen intensive staking in the recent past, particularly in the years 1999 and 2000 in response to positive and widely-spread diamond mineral indicator results from MGS till surveys in the Superior province. However, despite very favorable crustal conditions, this activity has not translated into the discovery of kimberlite bodies. The present three licences lie north and up-ice from the locus of much of the previous exploration. Kimberlite indicator minerals have been reported on these licences in recent Provincial till studies, particularly in the vicinity of the Hayes and Gods Rivers. One sample of Long Spruce till in this area contained 40 kimberlite indicator minerals.
A fixed-wing triaxial, magnetic gradiometer survey was completed over the entire licence area by a contractor this spring. The high-quality geophysical results were reviewed by two geophysical groups and an initial selection of targets made with characteristics of kimberlite bodies. The older basement rocks in this area are overlain by up to 200 metres of Paleozoic sediments, mainly limestone, which offers a relatively inert backdrop to the intrusive kimberlite pipes or dykes. An initial selection of 20 targets was made by the geophysical contractor and the most promising of those will be tested by drilling this Fall.
Subject to Exchange approval, Arctic Star Diamond Corp.will earn a 42.5 % interest in the licences, equal to that of Geodex, by making a one time payment of $20,000 and 100,000 shares as well as spending the next $140,000 on exploration of the property, that sum being the amount already spent by Geodex this past spring on the airborne survey. The Vendor has agreed to reduce its carried interest to 15% from 20%
Beyond that point, the two companies will share exploration expenditures equally as part of a joint venture and make payments to the vendor equally as laid out in the underlying agreement, substituting Arctic Star shares for Geodex shares on a 50:50 basis
Geodex Minerals Ltd has four gold and one diamond project. Armstrong Brook is the companyÂs leading gold project. Details on Armstrong Brook and the four other projects in GeodexÂs inventory - the Potter Stock gold project , the New Caanan gold property, Corhill gold property, and the Superior Diamond project in Manitoba can all be found on our website, http://www.GeodexMinerals.com .
ON BEHALF OF THE BOARD OF DIRECTORS
GEODEX MINERALS LTD.
"Jack M. Maris"
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