joint venture agreement with Snowfield DeveloNew Shoshoni Ventures Ltd NSV
Shares issued 5,385,308 Aug 9 2002 close $ 0.32
Monday August 12 2002 News Release
Also Snowfield Development Corp (SNO) News Release
Mr. George Erskine of New Shoshoni reports
New Shoshoni Ventures has entered into a joint venture agreement with Snowfield Development whereby Snowfield can earn a 50-per-cent interest in the Fate mineral claim. This claim is located on NTS Jennejohn Lake Map Sheet 85 I/5, in the South mining district of the Northwest Territories. The Fate property is located approximately 48 kilometres east-southeast of Yellowknife and 16 kilometres northeast of the Drybones Bay diamondiferous kimberlite currently held under option by New Shoshoni. The Fate claims cover an area of approximately 2,480 acres. The terms of the joint venture agreement are as follows.
Snowfield can earn a 50-per-cent interest in the property by:
paying New Shoshoni a total of $20,000;
issuing to New Shoshoni a total of 200,000 shares of Snowfield stock; and
expending a total of $100,000 on exploration and development, including 500 metres of diamond drilling, on the property by Dec. 31, 2003.
New Shoshoni retains a 5-per-cent overriding royalty on any diamond production with the provision that Snowfield can purchase up to 60-per-cent (a cumulative 3-per-cent) of the 5-per-cent for a total cost of $3-million.
This area was originally staked by New Shoshoni to cover a number of discrete magnetic anomalies located within Defeat Lake itself. These targets consist of a series of distinct bull's eye magnetic anomalies typical of kimberlite pipes. The Defeat Lake area was also included in the recent helicopter-borne multifrequency electromagnetic (EM) survey carried out by Snowfield in the general Drybones area. These data are currently being interpreted; a preliminary analysis of these detailed data (50-metre line spacing) appears to indicate that the magnetic targets at Defeat Lake also show an EM response. Further work planned for the area by Snowfield will include till sampling and exploratory drilling.
Snowfield is systematically increasing its land position in this portion of the Slave Craton and is therefore very encouraged by this recent joint venture agreement. The existence of such magnetic targets approximately 16 kilometres from the Drybones kimberlite pipe is very encouraging and significantly increases the potential size of this prospective area.
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