VANCOUVER, March 6 /CNW/ - Pebble Creek Mining Ltd. (the "Company") holds
100 per cent interest in a reconnaissance permit on 2,190 square kilometers in
southwestern Uttar Pradesh. Late in 2006 the Company and De Beers India Pvt.
Ltd. executed a Consulting Services Agreement that grants De Beers the right
to earn 85 per cent equity interest in a Prospecting Licence at Banda by
performing all exploration and taking the project through to a feasibility
study. De Beers would also earn the right to market any diamonds mined from
Banda. If De Beers elects to continue, the 85 per cent interest would be
established by forming a new company before May, 2009, when, under Indian law,
the Reconnaissance Permit must be surrendered or converted to a Prospecting
The Banda prospect is located 30 kilometers northeast of the Panna
district in the neighboring state of Madhya Pradesh. There are several diamond
districts in India, both alluvial and bedrock, which are mined by irregular,
local miners. The kimberlite pipes near Panna constitute the only diamond
mining district in India that has been mined systematically in recent years by
a company, National Mineral Development Corporation, an Indian government
undertaking. The diamonds at Panna occur in kimberlite pipes as well as
alluvium and unconsolidated overburden.
West of Panna another 15 kimberlite pipes have been discovered recently
by Rio Tinto according to public statements by Biplob Chatterjee, Exploration
Manager - India for Rio Tinto. Drilling is in progress at present.
East of Panna, and south of Banda, diamonds have been found and mined
from a "fossil" placer deposit in Proterozoic conglomerate, the Vindhyan
formation. For many years it has been a common assumption that the Vindhyan
diamonds were derived from the bedrock pipes of Panna. This assumption has
been challenged by recent scientific work.
Geological Survey of India geologist, Dr. T.K. Rao, presented a paper in
2006 concluding that diamonds found in the Vindhyan are quite different from
the Panna and Hinota diamonds and came from a different source or provenance.
Dr. Rao concluded on geologic grounds that this provenance could only be the
Banda area to the north.
The Banda area is nearly all concealed by the thin south edge of alluvium
in the Ganges and Yamuna river floodplains where the Ken, Ranj and Baghain
rivers flow north into the floodplain. Dr. Rao suggests an integrated
exploration program in the Banda area.
De Beers recently informed the Company that it had started ground
reconnaissance on the Banda area and was planning an airborne magnetic survey
as the next step in exploration.
The Company has specialized in India during the last 12 years and holds a
variety of mineral rights and applications there.
Forward-Looking Statements. This news release contains forward-looking
statements, which address future events and conditions, which are subject to
various risks and uncertainties. The Company's actual results, programs and
financial position could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of which may
be beyond the Company's control. These factors include: the availability of
funds; the timing and content of work programs; results of exploration
activities and development of mineral properties; the interpretation of
drilling results and other geological data, the uncertainties of resource and
reserve estimations, receipt and security of mineral property titles; project
cost overruns or unanticipated costs and expenses, fluctuations in metal
prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such under reliance
should not be placed on forward-looking statements.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For further information:
For further information: Andrew Nevin, President & CEO of the Company at