GGL Resources Corp. (TSX VENTURE:GGL) reports that Rio Tinto Exploration Canada Inc. ("RIO") has notified GGL that it is planning to budget approximately $650,000 for diamond exploration on the CH Project claims.
The CH Project Area ("Property") is located some 250 kilometers north of Yellowknife in the Northwest Territories (NT) of Canada. The Property lies within an area measuring 60 km east-west by 80 km north-south, and begins 30 km west of the Diavik Diamond Mine.
The 2011 programme will focus on geophysical targets located by ground gravity surveys that were conducted last year and will consist primarily of drilling of a number of these targets. Kimberlite indicator mineral trains helped to focus the areas for the 2010 ground gravity surveys. The drilling is expected to begin this March/April.
In February 2009, GGL and RIO signed an Exploration and Option Agreement which gave RIO the sole and exclusive right and option to acquire, subject to Royalties, a 100% interest in the Property, by incurring expenditures of $10,000,000 on or before December 31, 2016, of which $900,000 is a commitment to be spent on or before December 31, 2011. This commitment will be exceeded with the completion of the planned 2011 program. In order to exercise the option RIO must provide GGL additional yearly payments beginning in 2013, to total $1,000,000 on or before December 31, 2016.
Source: GGL Resources Corp.