DIAGNOS Inc. ("DIAGNOS" or the "Corporation"), a leader in the use of knowledge extraction and artificial intelligence ("IA") tools, announces today the grant of a purchase option to Majescor Resources ('Majescor') for 131 mining claims from its Kimberlite-Extension route 169 project.
The 131 claims total 6,875 hectares and comprise 37 kimberlite targets staked through our proprietary Computer Aided Resource Detection System "CARDS" methodology for screening out and prioritizing anomalies. Some of these targets are located directly beside the first Quebec's Diamond Mine (Renard Diamond project) and the 11 new kimberlites discoveries announced by Stornoway May 5, 2016 on their Adamantin project.
CARDS uses powerful pattern recognition algorithms to analyse digitally compiled exploration data and identifies areas (targets) with signatures similar to areas of kimberlites near the mine owned by the Stornoway Diamond Corporation ('Stornoway'). During the months of January 2016 through to March 2016, over 23,912 km2 were subject to evaluation by DIAGNOS in the Northern Quebec region between the 50th and the 55th parallels using a mosaic of two leveled and merged airborne magnetic-spectrometric surveys of the South LG4 and the High Eastmain areas, James Bay. Twelve known kimberlite pipes of the Renard and the Beaver Lake originated from the Sigeom database and from Stornoway where used as positive training data.
Two different models, such as the Kimberlite Similarity algorithm (KSM) and the Positive-Negative algorithm, at a 60m resolution were generated over the South LG4-High Eastmain modeling area. DIAGNOS generated and staked two groups of 9 and 28 Kimberlite Pipe Targets based on two levels of similarity at 95% and 90%.
Under the terms of the executed agreement, Majescor will pay CAD $50,000 in cash and issue 2.5 million common shares to Diagnos. The agreement provides for Majescor to spend a minimum of CAD $150,000 on exploration work on the targets sold by Diagnos in the first year following the signature of the agreement and will spend a total of CAD $300,000, including the first year of exploration work, on the targets sold by Diagnos during the second year following the signature of the agreement. The agreement also provides for a 2% GOR (Gross Overriding Royalty) payable to DIAGNOS in the event of commercial production of a diamond deposit. Majescor may redeem 1% of the GOR royalty at a price of CAD $1 million to be paid in shares or in cash, at Majescor's option.
"In Majescor, we found a partner with a lot of experience in the diamond sector. In addition, Majescor has a large soil geochemistry database covering large areas including the area of the new Stornoway diamond mine." declared Michel Fontaine, Vice-President, Mining division of DIAGNOS.