Diadem Resources Ltd. is attempting to put the taint of its association with Bre-X Minerals Ltd. behind it with a new president and a new focus on exploring in Nicaragua and California.
Diadem was partnered with Bre-X affiliate Bresea Resources Ltd. on four projects in Indonesia. Diadem's (DIR/ME) shares, which traded above $8 last year, have crashed as low as 30¢. They closed yesterday at 72¢, up 12¢.
"We're tainted a little bit and we know that's because of our association there, so that's why we want to get rid of that address," said Daniel Farrell, appointed Diadem president in December.
Diadem has assigned its right to earn a 60% interest in a Tewah, Indonesia, gold property to Waseco Resources Inc. At the end of the transaction, Diadem will own 6.8 million common shares of Waseco representing a 46% interest. Diadem intends to dispose of one million shares and lend the proceeds to Waseco for working capital.
"It's like starting all over again," said Farrell, a geologist. "We're hopefully going to make the right decisions here and get this company up and running again."
Diadem's main focus is now in Nicaragua, where Diadem consultants estimate the Mestiza property contains 1.44 million ounces of gold in 4.96 million tons grading 0.29 ounces per ton. Diadem expects a 50-ton pilot mill will be installed soon.
Diadem's other major interest is its Leek Springs diamond property in northern California. Target drilling has recovered a total of 247 diamonds, ranging in size from 0.06 millimetres to 0.68 mm.
Diadem is also reviewing the technical merits of its diamond exploration property at Lac de Gras in the Northwest Territories and is drilling at its Pekan River, Sarah Lake and Mercury properties in northern Quebec and Labrador.
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