Burgundy Diamond Mines Limited (ASX:BDM)
EHR Resources (ASX:EHX) is a mineral resources company with an increasing focus on diamond exploration and project development.
On 9 June 2020 EHR entered into an Exploration Alliance Agreement (“Alliance”) with Diamond Exploration Strategies Ltd (“DES”), a privately-owned company focused on diamond exploration in Botswana. Under the terms of the Alliance, EHR will provide funding of US$1.5 million over three years to finance exploration activities, earning 50% ownership of any discoveries made which are determined by a joint technical committee to be designated projects. EHR will have the option to sole fund a Scoping Study on a designated project to earn-in to a 70% ownership interest, with a further option to reach a 90% ownership interest by sole funding a Feasibility Study. The Alliance is initially over five areas that have existing prospecting licenses, but extends to cover other prospective areas of Botswana that may be identified. On 2 June 2020 EHR entered into an earn-in agreement with North Arrow Minerals Inc. over the Naujaat diamond project in Nunavut, Canada. The world class Naujaat project represents the largest undeveloped diamond property in Canada that is not under the control of a major mining company, and contains an exceptional population of uniquely coloured and rare high value stones. EHR has the option to earn-in to 40% undivided ownership of the project in return for funding of C$5.6 million to extract a 1,500 to 2,000 tonne bulk sample in 2021. EHR has also made a preliminary proposal to earn an additional 20% undivided interest by funding a larger 10,000 tonne bulk sample pending positive results from the first phase. On 6 December 2019 EHR announced it had entered into an agreement to acquire 100% of Nanuk Diamonds Inc (“Nanuk Diamonds”) from Prospect AG Trading Pty Limited, a company associated with Mr Michael O’Keeffe, a director of EHR, and 9064-6316 Quebec Inc. Through the acquisition of Nanuk Diamonds Inc, EHR is now the owner of 625 mineral claims located east of the Ungava Bay in Northern Quebec. The 274 sq.km area contains several occurrences of diamond-bearing kimberlite dykes that were originally found in the early 2000’s but were left unexplored for the last 15 years.
Gold and Silver
EHR holds an 18% interest in the La Victoria Gold/Silver Project, located in the prolific North-Central Mineral Belt of Peru, which it acquired through an earn-in arrangements starting in 2017. Proposed drilling at this project has been impacted by permitting delays, but EHR remains enthusiastic about the potential of this projectand looks forward to participating in the next drilling program when Covid-19 restrictions are eased and drill permits are granted.