The five Kyle Kimberlite properties are located north and south of the Attawapiskat River in the James Bay Lowlands area of northern Ontario, approximately 130 kilometres west of the De Beers Victor Mine, and consist of diamondiferous kimberlites.
The Debut Diamonds Inc. (“Debut”) interest in this joint venture project is estimated at 22.5%. Debut assumed the KWG Resources Inc. (“KWG”) interest in the July 21, 2006 KWG, Spider Resources Inc. (“Spider’) and Renforth Resources Inc. (“Renforth”) three year option agreement whereby Renforth could earn a 55% interest in the five Kyle kimberlite properties and also became operator of the project.
On October 18, 2010, Renforth earned its 55% interest in the Kyle kimberlites project by completing the transfer of 39 adjacent claims and having incurred a total of $6 million of exploration expenditures. Spider was acquired by Cliffs Natural Resources Inc. in 2010 and was subsequently renamed Cliffs Chromite Far North Inc. (“Cliffs”). Debut’s interests have therefore been reduced to 22.5% and may be further reduced to 15% by Cliffs incurring exploration expenditures equal to the prior investment in the joint venture by Debut.
Debut would like to review, with its joint venture partners, its various options with regard to these properties. Debut will inform its shareholders further as more information becomes available.
The recent discovery of macro and micro diamonds announced by Metalex Ventures Inc. in their ‘T1 and U2’ Kyle Lake kimberlites is also highly encouraging for Debut’s interest in the previously discovered Kyle Kimberlites.
It is hoped that the value of Debut may soon be utilized to pursue its Kyle Kimberlite opportunities further.