IT'S NOW OFFICIAL! RDS IS GRANTED MINING RIGHTS IN THE C.A.R. AND HAS $577,000 FOR EXPLORATION WORK IN QUEBEC.
The decree ratification concludes the prospecting license request submitted by the company in June 1994. However, the excessively long delays to obtain the license obliged RDS to change its plans: the company implementation in the C.A.R. was delayed, and the definition and volumetric sampling was postponed from October 1994 to October 1995 to take full advantage of the dry season, maximize productivity and reduce costs.
Radisson Centrafrique S.A. is controlled by Radisson Mining Resources Inc. who holds 80% of the capital stock. Private investors from the C.A.R. hold the remaining 20% in compliance with the regulations in force in the Central African Republic.
Radisson Mining Resources intends to invest approximately CAN$3.5 million in the first year. That amount includes the purchase of heavy mobile equipment and a wash plant with a capacity of at least 20 cubic meters per hour. The expected program should result in the bringing into production of the property's diamond-bearing placers.
According to the data gathered in the 1994 program, the company is confident to succeed in defining areas of diamond-bearing gravel that are large enough to feed a wash plant and have a minimum grade of 0.3 carats/m3. A single wash plant would be able to produce at least 20,000 carats per full production year and generate CAN$4 million minimum in revenues by using the average rough diamond value of US$150 per carat - the average export value of rough stones in the C.A.R.
IN QUEBEC: RDS RAISES $577,000 THROUGH THE SOCIETE EN COMMANDITE RADISSON 94
Fifty (50) subscribers - the maximum allowed for private placements - invested in the Soci t en commandite Radisson 94 to carry out its 1994-1995 winter exploration work in Quebec. The funds enable RDS to undertake drilling campaigns on three properties, namely the O'Brien property of which the first results were obtained recently. A drilling campaign has just started on the Massicotte property held in copartnership with CS Resources Ltd. who decided to retire from the program. Therefore, the copartner will be diluted accordingly. In addition, drilling work will be carried out on the other RDS Massicotte township property - Lac Gignac - fully held by RDS, to look for contexts similar to those of the Detour Lake mine located at 12 miles west of the property. A total of 8,000 feet is expected to be drilled on the two Massicotte township properties.
CONTACT: Guy Parent, Vice-President, 819/797-0606
Jean-Marie Dupont, President, 819/762-2305
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|Date:||Jan 25, 1995|
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