BM Diamondcorp acquires another S. Kalimantan diamond prospect

Canadian diamond miner BM Diamondcorp Inc. (BDI) recently announced that it had reached agreement to earn a 70 percent interest in the Bobaris Block property in the Sungai Pinang area of the Meratus Range, SE Kalimantan.

The company said the property contained two significant primary diamond indicator anomalies coincident with a geological structure with the potential to host a possible primary source of BM Diamondcorp?s Cempaka alluvial diamond deposit, located 45km to the southwest.

Under the terms of the joint venture, BDI will acquire a 70 percent interest in the by (a) refunding to PT Indo Mineratama bond and application fees totaling US$22,000, (b) making a payment of US$75,000 to Promega Co., Ltd of Hong Kong by 31 December 2002, and (c) spending US$500,000 on exploration over five years. Upon completion of this expenditure, the joint venture equity will be BDI 70 percent, Promega 20 percent and PT Indo Mineratama 10 percent.

BDI would fund 100 percent of exploration expenditure.

BDI also has 80 percent stake in PT. Galuh Cempaka, which explores for Diamond in nearby Cempaka area. The mine is scheduled to commence commercial production in the first half of next year with first half of 2003 at an average production rate of 41,000 carats per annum over an 18-year mine life. (alex)