MONTREAL, QUEBEC--(Marketwire - Jan. 19, 2010) - Big Red Diamond Corporation ("Big Red") (TSX VENTURE:DIA) is pleased to announce that it has completed an agreement to enter into a 50% interest purchase and joint venture agreement with Melkior Resources Inc. (TSX VENTURE:MKR) regarding 3 claims (12 units covering 192 hectares) comprising the Bristol property ("Bristol") located in the Bristol Township of West Timmins, Ontario. The agreement is subject to regulatory approval.
The signature of this agreement strategically expands Big Red's current West Timmins property portfolio, giving it substantial further participation in one of Canada's hottest exploration camps. The Company's existing 11 claims (61 units), which are owned outright (100%), are located in the Bristol, Godfrey and Carscallen Townships. The acquisition of the Melkior claims also significantly improves Big Red's coverage of favourable geology.
Bristol is contiguous to Big Red's smaller Bristol claim block and to properties held by West Timmins and San Gold. The property is located 5 km North of Lake Shore Gold's West Timmins deposit (12,900,000 oz Au @ 10.4g/t) and 7 km North-East of Melkior's existing Carscallen property. Melkior's experience in the area will greatly assist Big Red with the planned exploration of the land package.
To purchase a 50% interest in Bristol, Big Red will issue one million treasury shares to Melkior and undertake to complete $400,000 in exploration expenditures over a 48 month period from the signature date of the formal Joint Venture Agreement. Melkior will act as Joint Venture operator on the claims and both parties have agreed to set up a Joint Venture Management Committee which will operate in accordance with standard Joint Venture requirements. Exploration should start soon after the signature of the JV Agreement.
The Company is also pleased to announce the launch of its new corporate web site and encourages shareholders and investors to visit the site at www.bigreddiamond.com
The press release was reviewed by Clint Barr, Director of DIA. Mr. Barr, P. Geo., is a qualified person under National Instrument 43-101
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.