Margaret Lake Diamonds (DIA.v) is a roughly $6 million market cap diamond explorer with a land package northwest of and immediately adjacent to Kennady Diamonds, a $188 million market cap explorer, which sits right on top of the De Beers / Mountain Province joint venture to develop the Gahcho Kué diamond mine in Canada's Northwest Territories.
Kennady is considered the most exciting exploration story in the Canadian diamond business currently, with the Kelvin and Farraday kimberlites beginning to show signs of scale, and grades and diamond values from a 25 ton sample expected in the next couple of months. With a nearly $900 million estimated capex, Gahcho Kué immediately to the south is one of the most anticipated diamond mines in development anywhere in the world.
Margaret Lake was formed by 72 year old mining engineer, analyst, and professional diamond mining speculator, Paul Brockington, who recognized potential for a revival in the Canadian diamond industry, as well as for that of continued good news from Kennady and Gahcho Kué, and optioned the Margaret Lake Property in late 2013 [Editors note, Brockington pays himself $1 per year in salary from the company].
Earlier this week, Brockington's company announced that they would be flying a helicopter-borne gravity gradiometry survey known as HeliFALCON® over the next couple of weeks, a few months behind schedule. The survey is to help the company narrow down targets for potential drill-testing next Spring-Summer.
This morning, Margaret Lake put out another news release, increasing their land position in the vicinity of Kennady and De Beers / Mountain Province. Margaret Lake has done a deal with Randy Turner's Jim Pattison backed Canterra Minerals to option up to 49% of Canterra's Marlin property, a 26000 hectare suite of claims on the Northwest side of Kennady's property.
To earn its share, Margaret Lake must make staged cash payments totalling $100,000 and issue 600,000 shares to Canterra, and incur $1.75 million in exploration expenditure over three years.
Canterra will be the operator of the property, and basal till sampling is expected to commence immediately.
"This Option Agreement with Margaret Lake Diamonds creates an opportunity between two companies that hold contiguous properties to the Gaucho Kue and Kennady Diamonds projects and share a similar geological environment. With the proximal nature of our land packages, the synergies of data collection and analysis, plus the additional capital to advance the Marlin Property expeditiously, we are delighted with this partnership and look forward to a mutually successful outcome," commented Randy Turner, CEO of Canterra and an accomplished diamond mine finder.
"We are pleased to enter into this Option Agreement with Canterra, as we now have ground under option that surrounds all the northern and western boundaries of the Kennady Diamonds property. We look forward to combining the knowledge base of our two management teams," commented Margaret Lake CEO Paul Brockington.
Here's the news release: Canterra Minerals and Margaret Lake Diamonds Announce Option Agreement on Marlin Property, NWT
We are shareholders in Margaret Lake and they are an advertiser which means we are biased. Always do your own due diligence.