RJK Explorations Ltd. [RJX.A-TSXV; RJKAF-OTC] has struck a deal with prospector Anthony Bishop to acquire the Bishop Nipissing diamond properties south of Cobalt, Ontario.
RJK said the properties cover 2,090 hectares and encompass at least 18 potential kimberlite pipes.
Bishop (the prospector) has spent over four years looking for the source of the 800-carat Nipissing Yellow Diamond that was found sometime during the development of the silver mines at Cobalt between 1903 and 1905.
“After closely following Bishop’s work for the last year and reviewing all of the data that Bishop has compiled, including a NI 43-101 technical report, RJK has decided to option the property and will initially drill the most likely potential kimberlite pipes that Bishop believes the Nipissing Yellow Diamond may have come from,” said RJK in a press release.
Under the terms of the option agreement, RJK will make a $50,000 cash payment upon signing and issue 1 million shares upon regulatory approval to the prospector. Spread out over four years are further cash payments totalling $50,000, 1.5 million shares and a work commitment of $1 million to earn a 100% interest in the properties.
The deal also provides for a 10% gross over-riding royalty for diamonds and a 1.5% net smelter royalty for other minerals.
RJK shares were unchanged at 4.5 cents on Tuesday February 5. The 52-week range is 22.5 cents and 3.5 cents.
The Bishop claims are situated in a well-established kimberlite field within the Lake Timiskaming Structural Zone. All are on Crown land and are mostly on high, dry, well-drained topography. Drivable logging roads are within 1 km or less, affording easy access to the property. Close by are three hydro-electric facilities, a large electric wind farm and a gas pipeline.
The Trans-Canada Hwy. is also very close, as is the train station at Cobalt, an area with a well-established historical mining history.
RJK has recently been focusing on several mineral claim blocks that were recently acquired within the Moosehead Gold Belt in central Newfoundland. The Moosehead North and Moosehead Sound Claim Blocks clover ground that is contiguous and are within the gold belt to the north and south of the Sokoman Iron Corp. [SIC-TSXV] gold discovery. RJK has also acquired the Rolling Pond claim block which is in the gold belt further to the south and contains a former Altius Minerals exploration target which it said is drill ready.
In a press release on October 30, 2018, RJK said two significant geochemical anomalies have been identified approximately 4.5 km south, southeast of the main Rolling Pond sinter zone. RJK recently mobilized geophysical crews to the project to perform high resolution ground magnetometer surveys as well as induced polarization surveys over the anomalous areas. The company has said additional soil sampling would be performed if geophysical anomalies are identified in the area.