TORONTO, March 25, 2004 (PRIMEZONE) -- Dialex Minerals Inc. (OTCBB:DLXM) is pleased to announce that it has entered into an option agreement with Holmer Gold Mines Limited to acquire its 55% interest in the Devlin joint venture with Riocanex. The Devlin property is located about 11 miles south-southeast of the town of Chibougamau, Quebec.
Dialex has acquired the right to purchase Holmer's joint venture interest for a sum of $600,000, which may be paid by the issuance of Dialex treasury shares issued at a 10% discount from the market calculated on the twenty (20) previous days weighted average trading price. The option is open for exercise by Dialex at any time up until December 31, 2004. In consideration of the grant of the option, Dialex has agreed to issue to Holmer as a deposit 450,000 common shares of Dialex to be issued as fully paid and non-assessable. Dialex is obliged to exercise the option if the spot price of copper reaches U.S. $1.50 per pound and retains an average trading price of U.S. $1.50 per pound for the following twenty (20) trading days.
The Devlin property, which is located in Obalski Township and which forms part of the Abitibi Greenstone Belt, contains a high-grade (3.4% cu) copper deposit located within trucking distance from a mill with excess capacity. Some $4,600,000 has been spent on the Devlin property by previous owners. Holmer commissioned a report on the property by Watts Griffis McOuat, dated April 25, 1995, which recommended exploration of the deposit based on copper prices achieving U.S. $1.40 per pound using contract mining and custom milling at Chibougamau. Mining and capital costs are expected to be low. WGM's estimation of the mineral resources on the Devlin property are measured resources of 73,000 tons at 3.48% copper, indicated resources of 92,000 tons at 4.33% copper and inferred resources of 100,000 tons at 3.69% copper. Copper recovery is estimated at 95% and production of a relatively high-grade concentrate was indicated in earlier metallurgical tests. The deposit is nearly fully developed, including a 1,000-foot decline driven to intercept the mineralization 160 feet below surface and a total of 2,000 feet of exploration and test mining drifts and stopes.
About Dialex
Dialex to date is involved in exploration for diamonds and base metals in the James Bay Lowlands of Northern Ontario. Dialex has assembled a claim base of 530 claim units. Interpretation of this data by its consulting geophysicist, Scott Hogg & Associates Ltd., has determined a substantial array of over 400 targets meriting further detailed exploration. Dialex's claim package is located in two areas; firstly, in close proximity to the McFauld's Lake copper base metal discoveries of Spider and KWG; and secondly, in close proximity to the DeBeers Victor Pipe. Dialex plans to conduct detailed ground geophysics over certain of the targets and diamond drilling utilizing flow through funds later in 2004.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.
Dialex Minerals Inc. -- 43,738,786 shares issued