Gem International Resources Inc. (CVE:GI) said on Tuesday it is in talks to buy Moydow Mines’s Dala historical database and has commissioned an independent due diligence evaluation of the dataset, and the preparation of a National Instrument 43-101-level independent technical report, and updated exploration recommendations for the property.
This coincides with Gem’s successful completion of a private placement through the issuance of 18 million units at a price of five cents per unit.
The funds will in part be used toward advancing its Dala project in Angola, which has potential for both new kimberlite discoveries and near-term alluvial diamond production. The property was previously explored by Moydow Mines Ltd. during the period 2004 to 2008 at a cost of over $12mln.
Moydow’s program was focused on kimberlite exploration and discovered several kimberlite pipes using detailed airborne and ground magnetic surveys. The historical data generated from their program also defined multiple geophysical kimberlite targets, including those confirmed by drilling. The kimberlites found were not comprehensively tested, and numerous untested kimberlite targets remain to be evaluated on the property.
“We are pleased with the successful completion of our initial private placement, which we see as an initial turnkey event directed towards developing the full potential of our Dala project. The acquisition and due diligence on the historical dataset will allow us to focus and fast track our kimberlite and alluvial exploration of the property,” said Denis Hayes, Gem’s chief executive officer.
Story by ProactiveInvestors