Acquire Fifteen Diamond Exploration Permits in the Democratic Republic of Congo (DRC) in the Diamond Craton in the Tshikapa Area in Occidental Kasai of the DRC
LONDON -- (BUSINESS WIRE) --
KIG Mining Plc (5KM.FSE) is pleased to announce that it concluded a Memorandum of Understanding on July 2010 with two companies in the Democratic Republic of Congo (DRC) to acquire fifteen (15) diamond Exploration Permits in the diamond Craton in the Tshikapa area in Occidental Kasai of the DRC. The permits total more than 6,000 km².
More than USD 3.2 million was spent on exploration of these permits in the last years. The MOU calls for an option period of 30 days to allow KIG to evaluate the potential of the permits. A considerable amount of data was made available to the company including aero magnetic surveys, sampling results, geochemistry results and preliminary drilling results. More than 20 potential diamondiferous anomalies have been identified on the properties. Targets on four permits have classified as “drill ready” and more are expected to be classified as such following a geophysical analysis of the data.
Alluvial diamond mining by local artisans is on-going on parts and in proximity to the permits acquired. The DRC is a party to the Kimberlite process and more than USD 600 million dollars is exported each year according to the Diamond Council of Antwerp.
Upon completion of the evaluation study KIG will own 100% of the permits.
KIG expects to make a further announcement on the evaluation of the permits in late August 2010.
KIG is very confident that based on the evaluation of the data those permits will prove to be high yielding in quality diamonds knowing the area in which the permits are located.
Contacts
KIG Mining Plc
Vick Kaprelian, +16463680125
IR Team: IR@kigmining.com
