De Beers enters C$20 mln Canadian diamond exploration deal
18/05/2016 19:13
TORONTO, May 18 (Reuters) - De Beers Canada said on
Wednesday it would spend up to C$20.4 million ($15.8 million)
under a diamond exploration agreement with CanAlaska Uranium Ltd
CVV.V for target areas in Canada's Athabasca Basin.
CanAlaska has staked claims covering 75 areas detected in an
airborne magnetic survey of the region, which extends over the
northern Canadian provinces of Saskatchewan and Alberta.
De Beers, which is 85 percent owned by Anglo American
AAL.L and 15 percent by the government of Botswana, is a core
asset for Anglo. The global mining group has decided to
concentrate on diamonds, platinum and copper, while selling its
iron ore, coal and nickel units. urn:newsml:reuters.com:*:nL8N15V0WA
Under a four-phase agreement, De Beers will operate a
detailed airborne survey, indicator sampling and drill testing
on CanAlaska's 43,000 acre claim.
De Beers reduced its output and prices last year amid
declining demand in China and an industry credit squeeze. De
Beers Canada suspended operations at its unprofitable Snap Lake
diamond mine in the Northwest Territories in December.
urn:newsml:reuters.com:*:nL1N13T1K9
De Beers Canada operates the Victor Mine in northern Ontario
and expects to begin production later this year at Gahcho Kue
mine in Northwest Territories that it is developing with
49-percent owner Mountain Province Diamonds MPV.TO .
De Beers sees subdued prices in 2016, but production is
likely to peak in 2017 after two diamond mines in Canada come on
stream. urn:newsml:reuters.com:*:nL5N1874W2
($1 = 1.2911 Canadian dollars)
(Reporting by Susan Taylor, editing by G Crosse)
((susan.taylor1@thomsonreuters.com; +1-416-941-8083; Reuters
Messaging: susan.taylor1.thomsonreuters.com@reuters.net))
Keywords: ANGLO AMERICAN CANALASKA/DIAMONDS