- Diamond Fields Ltd seems serious about its investments in Madagascar; the world's rising star in the mining sector. The Canadian company today again announced an increase in operation on the Indian Ocean state, saying it had obtained options for a promising nickel deposit.
Diamond Fields International Ltd today said it had negotiated the exclusive right to acquire a 100 percent interest in the Valozoro nickel deposit located in Madagascar. According to the company, the deposit had "a historically calculated resource of 3.7 million tonnes grading 1.75 percent nickel for 65,000 tonnes contained nickel."
The agreement provided the Canadian company with a three-month evaluation period with an option for a five-month extension before committing to acquire the property. A due diligence study on the property to assess the nature and extent of the deposit was to include geological, legal, development and marketing research review.
The Canadians said they intended to carry out further exploration in and around the area of the deposit. "The initial stages of the due diligence will begin immediately, with analytical results of the mineral samples expected by the end of November 2003," Diamond Fields said in a statement.
Upon exercise of the option, fieldwork will recommence following the rainy season in March 2004. Should Diamond Fields put the project into production, a 5 percent gross royalty on metal sold will be due to Jean-Raymond Boulle, who is also the controlling shareholder of Diamond Fields Ltd and the hitherto owner of the Malagasy nickel deposit.
- We believe this is an exciting opportunity for Diamond Fields International and are pleased to have reached an agreement giving the Company an option to acquire 100% interest in a defined nickel deposit, said the company's President, Gregg Sedun.
The Valozoro nickel deposit is located 60 kilometres north of the town of Fianarantsoa in south-central Madagascar and is reported in the Catalogue des Principaux Gites Mineraux de Madagascar (Catalogue of Principal Mineral Deposits of Madagascar), which is the most comprehensive government oversight of mineral resources on the island.
During 1956 and 1957, UGINE completed an extensive prospecting program and reported an estimated resource at 65,000 tonnes of a lateritic nickel metal deposit from an altered peridotite host grading 1.75 percent nickel. According to Diamond Fields, however, these were "historical resource estimates and future work is required to upgrade the estimates to comply with National Instrument 43-101 standards of disclosure."
Although the Valozoro nickel deposit has been known for several decades, the mining industry in Madagascar is still at its juvenile stage, both in legal terms and in quantity terms. Madagascar is now turning into a hot spot of mining explorations, as several surveys have demonstrated the presence of rich deposits of diamonds, gold and other precious metals and minerals.
Diamond Fields, which has its principal area of operations in Namibia, has been among the first serious international mining companies to enter the virgin deposits of Madagascar. The Canadians already have found two significant diamonds on their properties, and are now investing heavily in both diamonds and nickel mining on the island.
- This further investment confirms our belief that Madagascar offers a favourable geological and political environment for mineral exploration and mine development as well as confirming our optimism in the future of nickel itself, today confirmed Mr Sedun. It was the third time within a few months that the Diamond Fields President had announced major investments in Madagascar.
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