De Beers Canada Signs Option Agreement with Pure Gold

De Beers Canada has signed an option agreement with Pure Gold Minerals Inc for De Beers' Courageous Lake property in the Northwest Territories (NWT). The property consists of 14 mineral claims covering approximately 143 sq kilometers and is located 243 kilometers northeast of Yellowknife.

Under the terms of the agreement, Pure Gold must spend $1.2 million on exploration of the property over four years to earn an 85 percent interest, with a minimum of $150,000 in the first year.

If a discovery is made and a feasibility study indicates the existence of a deposit over a certain threshold in terms of value, De Beers has the option to buy back a 70 percent interest for a pro rata amount two times that spent by Pure Gold on the project. For projects below the threshold, Pure Gold will be the operator.

De Beers began conducting exploration of the Courageous Lake in 2001.

"The property at Courageous Lake has yielded positive results and we are confident that Pure Gold has the expertise and resources to successfully discover the source of these results," said Richard Molyneux, President and CEO of De Beers Canada.