Issued and Outstanding Shares

Directors and Officers
André Audet – Chairman of the Board
Marc-André Bernier – President and CEO
Marc Carbonneau – CFO and Secretary
Florent Gauthier – Director
Jacques Letendre – Director and Technical Advisor
Issued and Outstanding Shares
TSX Venture Exchange – MAJ
97,752,595 Outstanding Shares
115,515,963 Fully Diluted
Legal Counsel
Pothier Valiquette
Transfer Agent
CIBC Mellon Trust (Montreal)
Auditors
Raymond Chabot Grant Thornton LLP (Ottawa)
Head Office
Administrative Office
1216-1155 University Street
103-5420 Canotek Road
Montreal, Quebec, H3A 3B7
Ottawa, Ontario, K1J 1E9
Telephone: (613) 241-5333
Facsimile: (613) 241-8632
E-Mail: [email protected]
www.majescor.com
Report to Shareholders
On behalf of the Board of Directors, it is my pleasure
to bring you up to date on the achievements and
activities of Majescor Resources Inc. ("Majescor") over
the past year and to present the audited financial
statements for the fiscal year ended February 28, 2007.
The last year marked a significant turning point for
Majescor. In March 2006 the Board of Directors
appointed a new President and CEO with a mandate to
undertake a strategic review of Majescor’s core
business activities and world-wide exploration assets
and to propose a new business development model
designed to reenergize the Company and bring it inline
with the new realities of the commodities market. Over
this last year, the Board, management and technical
team of Majescor have worked aggressively to
implement a series of corporate initiatives which have
led to the successful transition of Majescor from an
exclusively diamond-focused company to a multicommodity explorer.
Going forward in 2007, we believe we can add
significant value for our shareholders by targeting the
development of resources within the uranium,
gold/base metal and diamond projects that Majescor
now holds in its two core regions of operation, Quebec
and Madagascar; by looking for similar projects in
geographic proximity that will allow us to take
advantage of our extensive knowledge base and inhouse technical expertise; by acquiring other historical
resources, like our Besakoa polymetallic prospect in
Madagascar, that can be quickly tested and advanced to
add value; and by continuing to develop synergies with
other exploration companies to reduce risk and share
expertise.
Here are the year's key accomplishments:
♦ In July 2006 Majescor took a decisive step on the
path of becoming a multi-commodity explorer by
entering into an agreement with Calibra Resources
and Engineers Madagascar (“CREM”) for the
acquisition of a 100% interest in four gold and
base metal properties in Madagascar. Key to the
transaction with CREM was the acquisition of the
Besakoa property in southern Madagascar. The
Besakoa property is host to a series of sulphide
occurrences including the Besakoa polymetallic
prospect, Madagascar’s principal copper-zincsilver-gold occurrence. Reconnaissance sampling
conducted by Majescor in September 2006
confirmed the presence of anomalous gold, silver
and copper values over a minimum 700m strike
length at the main Besakoa prospect with surface
sample values of up to 17.5 g/t gold, 9.8 g/t silver,
and 30.4% copper. In January 2007, Majescor
completed its first diamond drilling program on the
Besakoa property targeting the main Besakoa
VMS prospect. The eight-hole, 431m core drilling
program was designed to confirm and upgrade
geological data derived from historical core
drilling dating back to the 1950s. Drill core
enriched in iron oxides and/or copper-zinc-bearing
sulphides was observed in all eight drill holes with
intersections of up to 21.5 m of 0.7% Copper, 0.5
g/t Gold, 1.1% Zinc and 21.4 g/t Silver. On the
Daraina gold property in Northern Madagascar,
reconnaissance surface sampling carried-out in
August 2006 confirmed the presence of economic
grades in surface grab samples with assays of up to
81.7 g/t gold and 21 g/t silver.
♦ In August 2006, Majescor announced the signing
of an agreement with Uranium World Energy Inc.
(“UWE”), a recently incorporated and privately
held mining company, whereby UWE may earn
100% of Majescor’s uranium rights on the De
Beers Exploration of Canada’s (“De Beers”) Baker
Lake property in Nunavut. In the fall of 2006, a
uranium exploration campaign was launched on
the property to follow-up on the conclusions of a
43-101-type report prepared by MPH Consulting
Ltd (“MPH”) of Toronto. Based on a geological
compilation and analysis, MPH identified a series
of seven priority areas to be tested by deeppenetrating airborne geophysical surveying. The
seven blocks were subsequently flown within the
scope of a more extensive airborne geophysical
survey totalling 5,992 line-km. This survey,
covering both diamond and uranium permits, was
completed in October. In April 2007, Merc
International Minerals Inc. (“MERC”) announced
the signing of an agreement with UWE to acquire
all 12 million shares of UWE in exchange for 49%
of MERC shares. Majescor, owner of 25% of
UWE shares before the announcement, will
become a shareholder of 12% of the newly merged
company.
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Majescor Resources 2006 Annual Report
1
♦ In September 2006, Majescor signed a second
multi-commodity option agreement with De Beers,
this time for the Mirabelli property located in the
James Bay territory of Quebec. The vast, 3,246km² property has potential for both diamonds and
gold/base metals and the agreement with De Beers
involves distinct provisions to acquire diamond
interests and metal interests. In November 2006,
the property was surveyed by way of systematic
surficial sediment sampling for kimberlite
indicator minerals (“KIM”). In January 2007, a
high resolution airborne magnetometer survey was
conducted over a 191 km² priority area identified
through geological compilation of historical De
Beers data. The airborne survey identified a series
of prospective targets for kimberlites. Ground
geophysical surveying of selected airborne
anomalies was carried-out in April, in anticipation
of a fall 2007 core drilling program. On the
gold/base metal side, previous deep-penetrating
airborne geophysical surveying by De Beers over a
portion of the Mirabelli property identified 66
electromagnetic (“EM”) conductors, forming 29
“sulphide” targets with potential to host massive
sulphide mineralization. None of the sulphide
targets have been drill-tested. The processing of
2,031 heavy mineral concentrates derived from
KIM surveys carried out by De Beers and
Majescor has resulted in the identification of
several particulate gold anomalies in different parts
of the Mirabelli property, and elsewhere within the
15,000 km² area of interest, which clearly warrant
follow-up.
♦ In November 2006, Majescor reached another
milestone when its Braúna diamond project located
in the State of Bahia, Brazil, a joint-venture with
Vaaldiam Resources (“Vaaldiam”), was advanced
to a first phase of bulk sampling. Braúna became
Majescor’s first diamond exploration project to
reach
the
resource
assessment
phase.
Approximately 100 tonnes of saprolitic kimberlite
were collected and processed from the two largest
pipes, Braúna 3 and Braúna 7. The second set of
partial results released by the Joint Venture in
January 2007 listed 58 commercial-sized diamonds
(total weight: 7.74 carats) recovered from 37.69
dry tonnes of kimberlite processed from the south
lobe of the Braúna 3 pipe, equivalent to a diamond
grade of 20.54 carats per 100 tonnes. On February
15, 2007, Majescor announced the sale to
Vaaldiam of its 40% interest in the Braúna project,
as well as its 100% interest in the Tres Marias
property, located in the State of Minas Gerais, for a
cash payment of $2,250,000 and the issuance of
Vaaldiam shares equivalent to $1,500,000. The
total value of the transaction with Vaaldiam is
$3,750,000.
♦ In January 2007, Majescor and partner Diamonds
North Resources Ltd. (“Diamonds North”)
announced that the airborne geophysical survey
commissioned over the Banks Island diamond
property in 2006 had delineated 65 geophysical
anomalies that may be caused by kimberlite
intrusions. Seven targets are considered moderate
to strong priority, including a target estimated at 12
hectares in surface area. Ground follow-up and a
second airborne geophysical survey to search for
new prospective diamond targets are planned for
this summer. The partners believe that the Banks
Island property, located on the east coast of Banks
Island, in the Northwest Territories, may represent
an entirely new diamond district in northern
Canada.
♦ From January to March 2007, Majescor continued
strengthening its position as a multi-commodity
explorer by signing a series of agreements for
uranium in Quebec. The Company signed two
option agreements with Azimut Exploration Inc.
(“Azimut”), for the South Rae and West Minto
uranium properties. Both properties are located in
the emerging Nunavik region of northern Québec
and host untested regional-scale geochemical
uranium anomalies. The bedrock underlying the
properties, composed of tonalitic and granitic
gneiss with late Archean granitic and pegmatitic
intrusions, has the potential to host uranium
deposits similar to Rössing in Namibia or
Madawaska in Ontario. The target is a hightonnage uranium deposit amenable to open pit
mining. In the Otish Mountains district, Majescor
optioned the uranium rights on its Lac Laparre
project to the Santoy-Melkior JV who will engage
in the search for structurally-controlled deposits.
On its Mistassini property, the Company signed a
new agreement with JV partner Superior
Diamonds Inc. (“Superior Diamonds”) granting
Majescor a 100% interest in the uranium rights. In
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2
Majescor Resources 2006 Annual Report
exchange, Superior Diamonds retains 100%
interest in the diamond rights on the property. The
Mistassini property hosts the Lac Mantouchiche
uranium showing discovered by Majescor and
Superior Diamonds in 2002. The drill core
uranium occurrence, which grades 0.20% U3O8
over 4.50 metres, will be further tested this
summer.
♦ In September 2006, Majescor and partner Forest
Gate Resources Inc. announced the discovery of a
new kimberlite float dispersal train on its Portage
property in northern Quebec. A 54.15-kg sample
of kimberlite from the new float dispersal train
discovered in the vicinity of the Remick dyke was
processed for microdiamonds and yielded a total of
83 diamonds, six times more diamonds per kg than
the original U0340 float occurrence processed in
2004. The Portage property is within 10 kilometres
of the diamondiferous Renard kimberlite cluster
currently being bulk-sampled by Stornoway
Diamonds Corp. (“Stornoway”) - Soquem. New
diamonds results released by Stornoway in May
2007 further indicate that the Otish Mountains
diamond district of Quebec, comprising
Majescor’s Portage property and the adjacent
Foxtrot property, represents one of Canada’s most
prospective regions for economic diamond
deposits.
effectively present our Company and corporate
message.
We are particularly excited about the Company’s new
uranium, gold/base metal and diamond prospects and
we intend to advance these in the upcoming months in
the hope of confirming the value we believe they hold
for our shareholders. In addition, we will continue to
diligently work at increasing shareholder value,
through new acquisitions, strategic partnerships and
exploration programs targeting tangible results. These
actions could lead to multiple discoveries on our
exploration projects.
On behalf of Majescor Resources, I would like to
extend my sincere thanks to our shareholders for their
support over the last year as the Company evolved into
a multi-commodity explorer. I would also like to take
this opportunity to acknowledge the commitment and
co-operation of our partners. Finally, I wish to convey
my personal gratitude to all the members of Majescor’s
technical and administrative staff, the directors,
advisors and consultants, without whose dedication and
enthusiasm the Company’s significant achievements
would not have been possible.
♦ Finally, Majescor successfully raised over $3.9
million during the year enabling the Company to
move forward on property acquisitions and
exploration and build market exposure.
Majescor’s market capitalisation more than
doubled on record volumes of share trades.
“Branding” plays a significant role during the growth
of a successful exploration company. Over the last
year, we have developed an in-house Investor
Relations program. As part of this program, we
presented the company to brokers and Fund Managers
across the country. We set up exhibits at several
industry trade shows and attended several more to talk
to investors and potential partners. We are currently in
the process of releasing a new Website site reflecting
the Company’s new corporate image. In the coming
year, we will focus on increasing Majescor’s presence
in the financial, industry and media markets to more
Marc-André Bernier,M.Sc., P. Geo.
President and Chief Executive Officer
Montreal, Quebec, Canada
June 6, 2007
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Majescor Resources 2006 Annual Report
3
Corporate Strategy Multi-Commodity Approach Focusing on
Uranium, Precious & Base Metals, and Diamonds
2006 was a very successful transformation year for
Majescor. In 2006, the Company implemented a new
business model aimed at expanding the scope of its
operations to include uranium, and gold and base
metals, as well as diamonds. These commodities are
all highly desired around the world and are particularly
sought-after in the countries where the Company is
engaged in mineral exploration.
Today, Majescor Resources is a dynamic and well
funded exploration company with uranium properties
in the Otish mountains, in the Ungava and in the west
Nunavik regions of northern Quebec, as well as a
significant uranium interest in the Thelon Basin of
Nunavut, through its ownership position in Uranium
World Energy.
In addition to uranium, Majescor has the largest
portfolio of diamond properties in Quebec, as well as
diamond projects in the Northwest Territories, in
Nunavut, and in Madagascar.
Majescor has further diversified its property portfolio
by recently acquiring gold and base metal properties in
Quebec and in Madagascar.
Majescor Resources reduces exploration risk through
the development of strategic alliances with:
*Azimut Exploration Inc.
*De Beers Exploration Canada Inc.
*Diamonds North Resources Ltd.
*Santoy Resources Ltd. / Melkior Resources Inc.
*Superior Diamonds Inc.
*Madagascar Mining and Development SARL.
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Majescor Resources 2006 Annual Report
2006 Highlights
•
•
•
•
•
•
•
•
•
•
•
New President and CEO appointed in March 2006
Design and implementation of a new business development model and successful transition of the
Company to a multi-commodity explorer
Land holdings in Madagascar expanded with four new gold/base metal properties; initial core drilling at the
Company’s Besakoa VMS prospects intersects 21.5 m of 0.7% copper, 0.5g/t gold, 1.1% zinc, and 21.4 g/t
silver
Spin-off of Baker Lake Uranium assets in Nunavut to Uranium World Energy
Optioning of diamonds and gold/base metal rights on De Beers’ massive Mirabelli property in northern
Quebec
The Brauna diamond project in Brazil is successfully advanced to the resource evaluation phase leading to
the eventual sale of the Company’s Brazilian diamond assets to Vaaldiam for $3.75 million
Identification of priority geophysical targets on the Banks Island diamond property in the Northwest
Territories, including a target estimated at 12 hectares;
83 diamonds recovered from a sample of kimberlite float from a newly discovered boulder train in the
Remick area of the Portage property in northern Quebec
Strategic expansion into northern Quebec for uranium with 4 new agreements in place (South Rae; West
Minto; Lac Laparre; Mistassini)
Share price more than doubles throughout the year on strong trading volumes
Majescor raises over $3.9 million and is fully funded to advance the development of its exploration
projects
Exploration
Last year, Majescor’s exploration activities spanned a
number of geographic regions throughout the world,
from Madagascar to Brazil and including the
Northwest Territories, Nunavut and Québec in Canada.
Ten (10) projects saw active exploration work over the
last 12 months, namely airborne geophysical surveying
(Banks Island in the Northwest Territories; Baker Lake
in Nunavut; Mirabelli in Québec); ground geophysical
surveying (Mirabelli and Lac Laparre in Québec);
surficial sediment sampling and prospecting (Portage,
Mistassini, and Mirabelli in Quebec; Ankarimbelo in
Madagascar), surface rock sampling (Daraina and
Besakoa in Madagascar), core drilling (Besakoa in
Madagascar, Braúna in Brazil), and bulk sampling and
bulk sample processing (Portage in Québec, Braúna in
Brazil).
Gross exploration expenditures for the period reached
$2,262,734 ($2,353,516 for 2006). The level of
expenditures incurred during the period ended
February 28, 2007 is higher than expenditures incurred
for the same period the prior year, due to the significant
cost of geophysical surveys conducted on the Baker
Lake property, and the acquisition of four properties in
Madagascar during the period.
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Majescor Resources 2006 Annual Report
5
Uranium
SOUTH RAE – Ungava Bay region, Nunavik district,
Quebec
Option to acquire up to 65% from Azimut. Operator:
Majescor.
Model: Rössing-type, large tonnage,
intrusion-related uranium deposit amenable to open
pit mining. The South Rae property covers a strong
regional-scale uranium anomaly in lake-bottom
sediments. The property consists of six claim blocks
totalling 2,090 map-designated cells with a surface
area of 945 km2. The largest claim block on the
property has a 65 km strike length.
On January 31, 2007, Majescor announced the signing
of a Letter of Intent with Azimut Exploration Inc.
(“Azimut”) for the South Rae uranium property,
located in Ungava Bay region of northern Quebec.
The South Rae property is located about 80 km south
of Azimut and Northwestern Mineral Ventures’ North
Rae property, where during the course of the initial
reconnaissance, more than 20 radioactive zones and
related uranium occurrences grading up to 0.59% U3O8
were discovered in an area measuring 32 by 43 km.
Majescor and Azimut believe that South Rae is part of
the same district-scale uranium target as North Rae and
may represent comparable exploration potential. On the
George River property to the southeast of South Rae,
Freewest Resources Canada reported finding four new
uranium zones, including the Stewart Lake trend where
grades up to 0.45% U3O8 were recorded in surface
samples. The George River property lies on-trend with
the district-scale lake bottom sediment uranium
anomaly on South Rae.
The partners believe that the bedrock underlying the
South Rae property, composed of tonalitic and granitic
gneiss with late Archean granitic and pegmatitic
intrusions, has the potential to host uranium deposits
similar to Rössing in Namibia or Madawaska in
Ontario. The target is a high-tonnage uranium deposit
amenable to open pit mining.
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6
Majescor Resources 2006 Annual Report
The South Rae uranium property consists of six claim
blocks totalling 2,090 map-designated cells (“CDC”)
covering a surface area of 945 km2. This includes 219
CDC that were recently designated and for which
confirmation is pending from the Ministère des
Ressources naturelles et de la Faune du Québec
(“MNRF”). The largest claim block on the property has
a strike extension of 65 km.
Majescor may earn a 50% interest by investing $4.6
million in exploration work over a period of 5 years,
and may acquire an additional 15% interest upon
delivery of a bankable feasibility study. A first cash
payment of $100,000 was paid on signing, then another
of $83,000 on the first anniversary, and finally of
$50,000 on the next three anniversaries, for a total of
$330,000. Majescor issued 710,000 common shares on
signing, and an additional 710,000 common shares will
be issued on the first anniversary (these shares are
subject to a 4-month hold period).
Majescor will initially be project operator for uranium
and as such, intends to conduct an airborne geophysical
survey (radiometric, magnetic, electromagnetic), as
well as lake-bottom sediment sampling and ground
prospecting on the property during the summer of
2007. The property consists of six claim blocks
totalling 2,090 map-designated cells with a surface area
of 945 km2. The largest claim block on the property
has a 65 km strike length.
WEST MINTO – West-central Nunavik district,
Quebec
Option to acquire up to 65% from Azimut. Operator:
Majescor. Model: Rössing-type, uranium deposit.
The West Minto property covers a 36 km-long
anomaly containing values in excess of 100 ppm U in
lake bottom sediments. The property consists of two
claim blocks totalling 918 map designated cells with a
total surface area of 416 km2.
along the coast of Hudson Bay. The property covers a
strong regional-scale uranium anomaly in lake-bottom
sediments, which extends for 60 km. The main feature
of the property is a sharply defined geochemical
anomaly, some 36 km long, with values in excess of
100 ppm U. The West Minto property lies along a
major basement flexure marked by a magnetic
signature that is clearly correlated with the districtscale uranium anomaly. The area is underlain by late
Archean intrusive rocks as well as felsic volcanic rocks
and sedimentary rocks of probable Proterozoic age.
The target is a high-tonnage intrusion-related uranium
deposit amenable to open pit mining.
The West Minto property consists of two claim blocks
totalling 918 CDC and covering a surface area of 416
km2. This includes 88 cells that were recently
designated and for which confirmation is pending from
the Quebec MNRF.
The agreement with Azimut stipulates that Majescor
may earn a 50% interest in the property by investing
$3.8 million in exploration work over a period of 5
years, including $500,000 in year 1. The Company
may also acquire an additional 15% interest upon
delivery of a bankable feasibility study. A first cash
payment of $100,000 was due on signing, followed by
four annual payments of $50,000 each, for a total of
$300,000. Majescor issued 270,000 common shares on
signing and an additional 270,000 common shares will
be issued on the first anniversary of the agreement
(these shares are subject to a 4-month hold period).
Majescor will initially be project operator for uranium
and as such, intends to conduct an airborne geophysical
survey (radiometric, magnetic) as well as lake-bottom
sediment sampling on the property during the summer
of 2007.
On March 27, 2007, Majescor announced the signing
of a second Letter of Intent with Azimut for the West
Minto uranium property, located in west-central
Nunavik district, northern Quebec.
The West Minto uranium property is located about 150
km east-southeast of the town and airport of Inukjuak,
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Majescor Resources 2006 Annual Report
7
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8
Majescor Resources 2006 Annual Report
MISTASSINI – Otish Mountains region, Quebec
100% owned. Majescor to follow-up this summer on
its Lac Mantouchiche uranium showing in drill core
(0.20% U3O8 over 4.5m). Target: Vein-type uranium
deposits associated with shear zones in off-basin
position basement rocks. Majescor has significantly
augmented its land position around the Lac
Mantouchiche uranium showing by staking an
additional 33,000 hectares since February. The
property consists of 730 map-designated cells, with a
surface area of of 391 km2.
On March 5, 2007, Majescor announced the signing of
a new agreement with joint venture partner Superior
Diamonds Inc. (“Superior Diamonds”) on the
Mistassini property located in the southwest part of the
Otish Mountains. The agreement grants Majescor a
100% interest in the uranium rights. In exchange,
Superior Diamonds retains 100% interest in the
diamond rights on the property, as well as a 2% Yellow
Cake Royalty for uranium. Majescor retains a 2%
royalty for diamonds.
Subsequent to the agreement, the joint venture partners
considerably increased their land holdings by staking
an additional 33,000 hectares around the Lac
Mantouchiche uranium showing. The property now
comprises 730 map-designated cells, with a surface
area of 391 km². This includes 221 cells that were
recently designated and for which confirmation is
pending from the Quebec MRNF.
The Mistassini property hosts the Lac Mantouchiche
uranium showing one of the rare uranium occurrences
discovered in the Otish Mountains since the end of the
Uranium boom days of the 1980s. The drill core
occurrence discovered by Majescor and Superior
Diamonds in 2002 while testing a diamond target
grades 0.20% U3O8 over 4.50 m. It has never been
followed-up.
Historically, the main thrust of the uranium exploration
in northern Quebec has focused on the Otish
Mountains Paleoproterozoic sedimentary basin in the
search for unconformity-related uranium deposits, as
this basin showed geological similarity to the prolific
Athabasca Mesoproterozoic sedimentary basin in
Saskatchewan. Advances in uranium deposit geology
together with significant results recently obtained by
Strateco Resources on the nearby Matoush property,
where one of the best reported drill intersections to
date has been 2.13% U3O8 over 15.2 m (Strateco news
release dated February 20, 2007), have highlighted the
potential in the Otish Mountains district for economicgrade, vein-type uranium mineralization associated
with shear zones.
The Mistassini property is strategically located in a
proximal off-basin position, to host shear zone-related
uranium deposits. The property rests on basement
rocks, immediately north of the Papaskwasati
sedimentary basin, a north-trending spur of the Lake
Mistassini basin, itself an equivalent of the Otish
Mountains basin located 100 km to the northeast.
The 2007 exploration program at Mistassini calls for
drilling the extensions of the Lac Mantouchiche
showing, as well as a targeted program of geological
compilation, airborne geophysics and ground follow-up
to better define structure and grade controls on
mineralization and to search for new uranium
occurrences.
LAC LAPARRE – Otish Mountains region, Quebec
100% owned. Santoy-Melkior JV can earn-in up to
66.6% of the uranium rights. Target: Vein-type
uranium deposits associated with post-emplacement
faults that cross-cuts sedimentary sequences. The
property consists of 317 map-designated cells, with a
surface area of 147 km2. Majescor retains 100% of
the diamond rights.
On February 19, 2007, Majescor announced the
signing of a Letter of Intent to option up to a 66 2/3%
interest in the uranium rights on the Lac Laparre
property to a 50/50 joint venture formed by Santoy
Resources Inc. and Melkior Resources Inc. Majescor
will retain exclusive rights for diamonds.
The Lac Laparre property consists of 317 mapdesignated cells covering 147 km² of ground
prospective for uranium, strategically located within
the Otish Mountains Paleoproterozoic sedimentary
basin which hosts many uranium showings typical of
unconformity-related uranium deposits.
The
geological setting of the Lac Laparre property is
________________________________________________________________
Majescor Resources 2006 Annual Report
9
analogous to Strateco’s Matoush property, located
25 km southwest. The Lac Laparre property is also
located 16 km to the northeast and on trend with
Santoy-Melkior’s Marc-André uranium occurrence
which is currently being drill-tested.
The option agreement with the Santoy/Melkior joint
venture calls for a work commitment of $2.5 million in
exploration over five years (including a minimum of
$300,000 in year 1), an upfront cash payment of
$50,000, the issuance of 200,000 shares of Melkior and
60,000 shares of Santoy in tranches over a one-year
period, and a 1.5% Net Smelter Return (NSR) royalty,
half of which can be bought back at any time prior to
commercial production for $1 million.
The Santoy-Melkior Joint Venture will be the initial
operator of the Lac Laparre project and will conduct an
lake sediment geochemical sampling program on the
property in the spring of 2007.
BAKER LAKE – Thelon Basin region, Nunavut
Uranium & Diamonds – Target: Kiggavik-style
uranium deposit associated with fault zones in offbasin position basement rocks. Majescor spun-out its
uranium rights on De Beers’ Baker Lake property to
Uranium World Energy (“UWE”) in exchange for 3
million shares. UWE subsequently announced its
intentions to merge with Merc International
Minerals. Majescor will become a shareholder of
12% of the merged company. The Baker Lake
property consists of 19 uranium prospecting permits
covering 3,270 km².
The terms of the transaction with UWE stipulate that
Majescor agrees to sell and transfer its uranium rights
to the property in exchange for the receipt of three
million common shares of UWE and a commitment by
UWE to spend $640,000 in exploration on the property
before December 31st, 2008. At this point, UWE will
be deemed to have earned an 80% interest in the
property from De Beers. By May of 2007, UWE had
met all of the above conditions.
In the fall 2006, a uranium exploration campaign was
launched on the Baker Lake property to follow-up on
the conclusions of a 43-101-type report filed by MPH
Consulting Ltd (“MPH”) of Toronto. Based on a
geological compilation and analysis, MPH identified
priority target areas on the property and selected seven
specific areas to be tested by deep-penetrating airborne
geophysical surveys. The seven blocks were
subsequently flown within the scope of a more
extensive airborne geophysical survey totalling 5,992
line km. This survey, covering both diamond and
uranium permits, was completed in October.
In November 2006, UWE replaced Majescor as
technical operator of the uranium project. The final
results of the airborne geophysical survey identified a
series of uranium targets for ground follow-up during
the summer of 2007.
On April 18, 2007, Merc International Minerals Inc.
(“MERC”) announced the signing of an agreement
with UWE to acquire all 12 million shares of UWE in
exchange for 49% of MERC shares. Majescor, owner
of 25% of UWE shares before the announcement, will
become a shareholder of 12% of the merged
companies.
In August 2006, Majescor announced the signing of an
agreement with Uranium World Energy Inc. (“UWE”),
a recently incorporated privately held exploration
company, whereby UWE may earn 100% of
Majescor’s uranium rights on the Baker Lake property.
Majescor had optioned the uranium rights previously
from De Beers Exploration Canada Inc. (“De Beers”).
The property consists of 19 prospecting permits
covering 3,270 km², in two contiguous blocks
approximately 50 km apart. The property is located
20-40 km south of the Kiggavik group of uranium
deposits held by Areva Resources Canada Inc.
________________________________________________________________
10
Majescor Resources 2006 Annual Report
Baker Lake, Nunavut
Diamonds
PORTAGE - Otish Mountains region, Quebec
100% owned. Target: kimberlite pipe or dyke-hosted
diamond deposit. The Portage property is host to the
Remick kimberlite dyke discovered by drilling in
2005, as well as three occurrences of diamondbearing float. The property consists of 2,642 CDC
covering 1,365 km². Portage is within 10 km of the
diamondiferous Renard kimberlite cluster currently
being bulk-sampled by Stornoway Diamonds and
SOQUEM.
The Portage property is located in the Otish Mountains
region of northern Quebec, 125 km southeast of the
LG-4 hydroelectric complex and 320 km northnortheast of Chibougamau. The property is host to the
Remick kimberlite dyke discovered by drilling in 2005,
as well as three occurrences of diamond-bearing float
discovered by the Company during previous
exploration campaigns.
The fall 2006 exploration program at Portage focused
on eight priority areas identified as a result of new
compilation work and utilised a combination of glacial
sediment sampling for geochemistry and kimberlite
indicator minerals (“KIM”), geological mapping and
prospecting. Boulder prospecting conducted in the
vicinity of the Remick dyke led to the discovery of a
new kimberlite float dispersal train 250 m long by 50
m wide. A 54.15-kg sample of coarser kimberlite from
the new float occurrence (U0341-110) was processed
for microdiamonds by the Saskatchewan Research
Council, yielding a total of 83 diamonds, i.e. six times
more diamonds per kg than the original U0340 float
discovered in 2004. The largest stone found weighs
________________________________________________________________
Majescor Resources 2006 Annual Report
11
0.079 mg (0.46 x 0.42 x 0.26 mm) and is described as
an uncoloured, clear octahedron.
Analysis of the final KIM results from the 415 glacial
sediment samples collected at Portage led to the
identification of 15 prospective diamond targets, at
least 6 of which have a geochemical signature
favourable to the presence of kimberlite.
Majescor is considering various follow-up scenarios
for 2007, among which a property-wide systematic
geochemical sampling program to locate new
kimberlitic signatures in the overburden; supplemental
glacial sediment surveys for KIM in areas up-ice of the
six KIM targets with favourable geochemical
signatures; additional ground geophysical surveying at
the head of selected float and KIM dispersal trains; and
additional float prospecting
On May 17 2007, Stornoway-SOQUEM released new
preliminary bulk sampling diamond results diamond
for the Renard kimberlite cluster, which included the
highest diamond grades and largest stones ever
recorded in Quebec, providing further indication that
the Otish Mountains diamond district, comprising
Majescor’s Portage property and the adjacent Foxtrot
property, represents one of Canada’s most prospective
regions for economic diamond deposits.
MIRABELLI – Western James Bay territory, Quebec
Diamonds, Gold and Base Metals - Option to acquire
49% of the diamond rights from De Beers. Target:
kimberlite pipe or dyke-hosted diamond deposit. The
Mirabelli property displays favourable mineral
chemistry and it may represent an entirely new
diamond district in Quebec. Exploration carried out
in the fall of 2006 led to the identification and
targeted glacial sediment sampling of a 191 km²
priority area within the vast 3,246 km2 property. A
follow-up high resolution airborne magnetomer
survey over the priority area has identified a series of
prospective targets for kimberlite which will be tested
this summer. The Option Agreement with De Beers
includes a separate provision for gold/base metals.
In September 2006, Majescor signed an Option
Agreement with De Beers to earn an interest in the
Mirabelli property. The vast, 3,246-km² property is
located in the western James Bay territory, about 80
km south of the village of Eastmain. Under the terms
of the agreement, De Beers and Majescor will form a
51:49 Joint Venture upon Majescor spending $3.0
million on diamond exploration. At the onset Majescor
will be the operator of the diamond project.
Previous exploration by De Beers at Mirabelli included
systematic surficial sediment sampling for KIMs,
regional-scale and targeted airborne geophysical
surveying, and drilling. A total of 867 out of the
original 1,958 samples collected by De Beers tested
positive for KIMs, including several counts of 20 or
more. Probe-confirmed KIMs include G9 and G10
garnets with chemistries inside the diamond stability
field, as well as ilmenites, spinels, chrome-diopsides
and olivines. A 34,569 line-kilometre high resolution
airborne geophysical survey flown on the property
between 2004 and 2005 generated 143 anomalies
prospective for kimberlite, 25 of which were tested by
reverse circulation or core drilling.
In October of 2006, Majescor completed a reassessment of the De Beers data from the Mirabelli
property and identified a 191 km² area of interest
within the massive 3,246 km² property. In November,
the Company completed a targeted glacial sediment
sampling program and Quaternary investigation in the
priority area. A total of 251 glacial sediment samples
were collected in the search for KIMs and kimberlite
pebbles. In January 2007, Majescor commissioned a
helicopter high-resolution magnetometer survey over
the 191 km² area of interest. The airborne geophysical
survey delineated a series of prospective magnetic
targets for kimberlites, 19 of which were subsequently
tested by ground geophysical surveying.
In June, Majescor received the final ground
geophysical data from Geosig Inc. of Québec-city.
Final KIM data received from the laboratories of
Overburden Drilling Management Ltd (“ODM”) of
Ottawa in March will be used to categorize prospective
ground geophysical targets for kimberlites, in
preparation for follow-up ground testing during the
summer of 2007, including a first round of core
drilling.
The agreement with De Beers for the Mirabelli
property includes a separate provision to acquire gold
________________________________________________________________
12
Majescor Resources 2006 Annual Report
and base metal interests. Under the terms of the
agreement, Majescor can earn an 80% interest in gold
and base metals rights by spending $1.9 million in
exploration by March 2009. At the onset, Majescor
will be the operator of the gold and base metals project.
In January 2007, Majescor received final particulate
gold data from the processing by ODM of 2,031 heavy
mineral concentrates derived from KIM surveys carried
out by De Beers and by Majescor. This survey is one
of the largest of its kind ever conducted in northern
Quebec as it covers a total sampling area of nearly
15,000 km² centered on the Mirabelli property. Several
gold anomalies were outlined in different parts of the
Mirabelli property and elsewhere within the project
area of interest. Majescor also received results from
prospecting work for gold and base metals conducted
on the property during the fall of 2006. Of interest, is
an anomalous 1 km-long segment of greenstone terrain
where a number of bedrock grab samples grading
between 0.1 to 0.5 g/ton gold were recorded.
Starting in 2007 Majescor launched a claim renewal
and abandonment process on the Mirabelli property.
By June the total surface area of the property had been
reduced from 3,246 km² (6,093 CDC) to 702 km²
(1,314 CDC).
BANKS ISLAND
Territories
–
Artic
region,
Northwest
50/50 Joint Venture with Diamonds North Resources
(operator). Target: Ekati or Diavik-type kimberlitehosted diamond deposit. The Banks Island property
covers 4,749 km². In 2004 and 2005, high-interest
kimberlite indicator minerals were isolated in stream
sediment samples collected from the headwaters of
several drainages. Airborne geophysical surveying
carried out over a priority area on the property in
2006 delineated 65 geophysical anomalies prospective
for kimberlite, including one target estimated at 12
hectares in size. The Banks Island property may
represent an entirely new diamond district in
Northern Canada. De Beers is actively exploring
several million acres in the region.
Diamonds North Ltd (“Diamonds North”). As a result
of regional reconnaissance, an initial 600,000-acre
(2,428 km2) permit application was filed in 2003 and
stream sediment sampling programs were conducted
over four drainage basins in the project area in 2004
and 2005. Several samples yielded kimberlite indicator
minerals, some of which exhibit primary textures
indicating a proximal source. The presence of indicator
minerals with delicate primary surface features, along
with G10 and eclogitic garnets with diamond inclusion
suggest the property may host an entirely new
kimberlite district. The Banks Island property is
located on the east coast of Banks Island, in the
Northwest Territories. The property covers 4,749 km².
In July 2006, Majescor and Diamonds North Resources
completed an airborne geophysical survey totalling
4,700 line-km over a priority target area on the Banks
Island property. The survey delineated 65 geophysical
anomalies that may be caused by kimberlite intrusions
located close to the surface. Seven of the anomalies are
considered moderate to strong priority, including one
target estimated at 12 hectares in size (300 x 400 m).
The 12-hectare target is characterized by an obvious
circular shape and a weak, well constrained magnetic
signature.
The 2007 exploration program at Banks Islands calls
for ground mapping and prospecting of high priority
geophysical targets. The partners are also considering
flying a second airborne geophysical survey on the
property to search for new prospective diamond
targets. To date, only 10% of the property has been
surveyed with airborne geophysics.
The Banks Island diamond project was initiated in
2003 as a 50/50 joint venture between Majescor and
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Majescor Resources 2006 Annual Report
13
Baker Lake – Thelon Basin region, Nunavut
Option to earn 50% interest from De Beers.
Target: kimberlite pipe or dike-hosted diamond
deposit. The Baker Lake property lies at the East
margin of the Thelon basin, in the Kivalliq region
of Nunavut.. The Baker Lake property may
represent a new diamond district in Churchill
geological province which is also host to Shear
Minerals-Stornoway’s
Churchill
project
kimberlite field, located 200 km to the East.. The
property consists of 18 exploration permits in two
contiguous blocks with a total surface area of
3,108 km².
De Beers’ Baker Lake diamond property is located
some 50 km west of the town of Baker Lake, in the
Kivalliq region of Nunavut. Majescor has an
option to acquire a 50% interest in the property by
solely funded $1,240,000 in exploration by
December 31st, 2008. The Baker Lake property
has both diamond and uranium potential and the
agreement with De Beers provides for a separate
option for uranium. De Beers is the operator of the
diamond project.
The land package originally under option to
Majescor in 2005 consisted of 51 mineral permits
covering approximately 21,000 km². From this
number, a majority of the permits have been
allowed to lapse and a number have been set aside
for uranium exploration. The Baker Lake diamond
property currently consists of 18 exploration
permits in two contiguous blocks with a total
surface area of 3,108 km².
The Baker Lake property lies at the East margin of
the Thelon basin, in western Churchill geological
province. Prior to 2006, De Beers had identified
six target areas for follow-up on the basis of
regional surficial sediment sampling, five of which
were subsequently they investigated through more
detailed sampling and airborne geophysics. The
most promising of the five target areas, based on
KIM results, was then surveyed using a fixed-wing
airborne magnetometer system using 200 m
spacing-lines. The geophysical survey outlined a
number of new priority anomalies.
The remaining diamond exploration targets
identified by De Beers in 2004-2005 were flown in
the fall of 2006 by Majescor, as part of a larger
survey for both uranium and diamonds. The
helicopter-borne magnetic/EM/radiometric survey
totalling 6,032 line-km, 1,995 km of which were
for diamond. Once again, a number of priority
diamond targets were identified.
The 2007 Baker Lake diamond exploration
program calls for a regional airborne
magnetometer survey to cover the remainder of the
area of interest for diamonds, to be followed by
high-resolution surveying of the highest priority
anomalies identified through previous work on the
property. Staking and test-drilling of the best
targets is slated for the fall.
BRAÚNA - Bahia state, Brazil
TRES MARIAS – Minas Gerais state, Brazil
Target: Kimberlite-hosted diamond deposit amenable
to open-pit mining. In February 2007, Majescor sold
its 40% interest in the Braúna property together with
its 100% interest in the Tres Marias property to
partner Vaaldiam for a cash payment of $2,250,000
and the issuance of Vaaldiam shares equivalent to
$1,500,000. The total value of the transaction with
Vaaldiam is $3,750,000.
The Braúna project consists of three exploration
concessions which encompass four diamondiferous
kimberlite pipes or blows that are associated with a
system of kimberlite dykes that has been traced over a
distance of approximately 15 km.
The Braúna
kimberlites were originally discovered by De Beers
Brazil Ltda. in the early 1990s during a large scale
reconnaissance sampling program over a portion of the
Sao Francisco Craton in Bahia State. Majescor
purchased the property from De Beers in 2004. In
August 2005, a Joint Venture was established with
Vaaldiam Resources Ltd (“Vaaldiam”), whereby
Vaaldiam acquired a 60% interest in the project in
return for a cash payment and the issue of shares to
Majescor.
Starting in the fall of 2005, Majescor and Vaaldiam
established a comprehensive exploration program on
the Braúna property. The program, which comprised
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14
Majescor Resources 2006 Annual Report
ground geophysical surveying, geological mapping,
surficial sampling and core drilling was designed to
characterise the geometry and extensions of known
kimberlite bodies at surface and at depth, and to search
for new occurrences. By the summer of 2006, four
new kimberlites had been found on the property and
sufficient geological information had been gathered on
known kimberlites and to support a decision to advance
the project to a first phase of bulk sampling. Braúna
thus became Majescor’s first diamond exploration
project to reach the resource assessment phase.
3 pipe, equivalent to a diamond grade of 20.54 carats
per 100 tonnes.
Approximately 100 tonnes of saprolitic kimberlite was
collected and processed from the two largest pipes,
Braúna 3 and Braúna 7. The second set of partial
results released by the Joint Venture in January 2007
listed 58 commercial-sized diamonds (total weight:
7.74 carats) recovered from 37.69 dry tonnes of
kimberlite processed from the south lobe of the Braúna
The Tres Marias project was acquired from De Beers
Brazil in March 2006. The project consisted of 47
claims totalling 700 km² and covering higher priority
KIMs and diamond targets, as well as an extensive data
set covering an area of interest of 6,600 km². The Tres
Marias project covers the lower reaches of the Abaeté
River which has a long history of diamond production,
On February 15, 2007, Majescor announced the sale to
Vaaldiam of its 40% interest in the Braúna project, as
well as its 100% interest in the Tres Marias property
located in the State of Minas Gerais for a cash payment
of $2,250,000 and the issuance of Vaaldiam shares
equivalent to $1,500,000. The total estimated value of
the transaction with Vaaldiam is $3,750,000.
________________________________________________________________
Majescor Resources 2006 Annual Report
15
as well as a reputation for producing large fancy
stones.
Madagascar
Acquisition of four CREM properties
In April 2007, Majescor renewed the 81 mining cells
that form four mining properties acquired from Calibra
Resources and Engineers Madagascar SARL
(“CREM”) in 2006. Majescor also finalized the transfer
of the latter to Daraina SARL, its Malagasy
subsidiary.Daraina SARL now holds a 100% interest in
the Besakoa (gold, silver, base metals); Daraina (gold,
silver); Analalava (base metals); Ankaramy (gold, base
metals); and Antsakabary (diamonds) properties.
Gold and Base Metals
BESAKOA – Tulear Province
100% owned. Target: Bisha-type, greenstone belthosted, volcanogenic massive sulphide (VMS) deposit.
The property hosts the Besakoa VMS prospect, a
historical copper-zinc-silver-gold showing in drill
core, and the principal polymetallic occurrence in the
country. In January 2007, Majescor completed its
first core drilling program on the Besakoa prospect.
Iron oxide and/or copper-zinc-bearing sulphides were
observed in all eight drill holes drilled, with
intersections grading of up to 21.5 m of 0.7% copper,
0.5 g/t gold, 1.1% zinc and 21.4 g/t silver. The
Besakoa property and surrounding area contains a
series of untested sulphide occurrences, and represent
a potential new Neoproterozoic VMS district in
Africa.
The Besakoa property, located in Tulear province,
southern Madagascar, is host to a historical copperzinc-silver-gold occurrence set in a volcanosedimentary unit. Drill core data from the 1950’s,
obtained from the Bureau de Recherches Géologiques
et Minières (“BRGM”) show the prospect consists of a
polymetallic sulphide lens containing massive to semimassive chalcopyrite, pyrite, pyrrhotite, sphalerite,
molybdenite and galena. Disseminated sulphides are
encountered throughout the core outside of the main
sulphide zone. The sulphide lens averages up to 10 m
in thickness over a minimum 500 m strike length, and
is open at depth. Only limited sections of core were
tested for gold and silver, returning values of up to 65
g/t Ag and 2 g/t Au.
The Besakoa region shows a prospective geological
setting for volcanic massive sulphide (“VMS”) type
mineralization and the main Besakoa polymetallic
prospect is compositionally similar to the Bisha ore
deposit in Eritrea, held by Nevsun Resources Ltd.
Majescor completed its first core drilling program on
the main Besakoa prospect in January 2007. The
purpose of the drilling was to confirm and upgrade
geological data derived from historical core drilling
dating back to the 1950s. Eight holes were drilled and
core was recovered to a maximum depth of 78 metres.
Iron oxide and/or copper-zinc-bearing sulphides were
observed in all eight drill holes drilled, with
intersections grading of up to 21.5 m of 0.7% copper,
0.5 g/t gold, 1.1% zinc and 21.4 g/t silver.
•
•
•
•
•
•
•
•
•
•
•
Drillhole BSK-06-01: 15.3 m grading 0.6% Cu,
0.7 g/t Au, 0.2% Zn, and 11.5 g/t Ag;
Drillhole BSK-06-02: 21.4 m grading 0.7% Cu,
0.3 g/t Au, 0.4% Zn, and 11.4 g/t Ag;
Drillhole BSK-06-03: 21.5 m grading 0.7% Cu,
0.5 g/t Au, 1.1% Zn, and 21.4 g/t Ag;
Including 0.7 m grading 8.1 % Cu, 1.1 g/t Au,
3.0% Zn, and 166 g/t Ag;
And another 5.0 m interval grading 1.1 g/t Au
and 7.0 g/t Ag;
Drillhole BSK-06-04: 7.5 m grading 0.6% Cu,
0.7 g/t Au, 0.5% Zn, and 5.6 g/t Ag;
Drillhole BSK-06-05: 12.5 m grading 0.6% Cu,
0.9 g/t Au, 1.6% Zn, and 32.2 g/t Ag;
Including 2.8 m grading 1.3% Cu, 2.0 g/t Au,
0.7% Zn, and 86.4 g/t Ag;
Drillhole BSK-06-06: 7.5 m grading 0.3% Cu,
0.5 g/t Au, 0.2% Zn, and 6.6 g/t Ag;
Drillhole BSK-06-07: 7.8 m grading 0.5% Cu,
0.4 g/t Au, 0.7% Zn, and 11.5 g/t Ag;
Drillhole BSK-06-08: 9.2 m grading 0.3% Cu,
0.2 g/t Au, 1.2% Zn, and 8.1 g/t Ag.
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16
Majescor Resources 2006 Annual Report
The Besakoa property contains a series of other
untested sulphide occurrences. In addition to the
sulphide showings, the Besakoa property also contains
surficial copper and zinc geochemical anomalies with
signatures similar to the main Besakoa prospect. These
anomalies were delineated following a compilation of
recent geochemistry data and historical core drilling
data acquired by Majescor in late 2006.
Majescor believes the Besakoa property and
surrounding area represent a potential new
Neoproterozoic VMS district in Africa.
The 2007 exploration program for the Besakoa
property calls for a deep-penetrating airborne
geophysical survey in the search for new polymetallic
targets; geological mapping; systematic sampling of
surficial deposits and gossan zones; prospecting; and
additional diamond drilling.
DARAINA - Antsiranana province
100% owned. Target: Mesothermal/epithermal shear
zone-hosted gold deposit in Proterozoic/Archean
basement rocks. The property is located 30 km from
the Andavakoera-Betsiaka gold district, the second
gold producer of Madagascar.
The Daraina property is located in Antsiranana
province, northeastern Madagascar. The property is
underlain
principally
by
Neoproterozoic-aged
metavolcanic rocks of the Bemarivo Series. The rocks
are described as ranging in composition from basalt to
rhyolite.
The Daraina property area contains numerous copper
anomalies, both in stream sediments and in bedrock,
outlined during regional geochemical (Cu-Mo-Sn-W)
surveying by the Service Géologique de Madagascar in
the early 1970’s. The area was subject to a small gold
rush episode in the early 1990’s, during which
numerous alluvial gold occurrences were identified by
local miners. Artisinal gold mining activity is ongoing on the property.
gold and 21 g/t silver were obtained in surface grab
samples.
The property comprises 53 map-designated claims with
a surface area of 331 km².
ANALALAVA and ANKARAMY- Antsiranana
province
100% owned. Target: Mesothermal/epithermal shear
zone-hosted gold deposit; Sedex or layered intrusive
type polymetallic deposit.
The Analalava property is located in Antsiranana
province, northeastern Madagascar. The property
comprises of 6 map-designated claims with a
surface area of 38 km².
The property is host to a series of historical nickelcopper showings associated with a Cretaceous
mafic intrusive body, the Analalava gabbrotroctolite massif.
Copper mineralization is
reported to occur along a 200 m to 400 m-wide
and 3 km-long corridor within the Analalava
massif.
BHP-Billiton is currently exploring the Analalava
area for Ni-Cu and Platinum group metals. Since
2004, BHP-Billiton has extended its land position
in the area and completely surrounds the property.
The Ankaramy property, also located in
Antsiranana province, consists of 15 mapdesignated claims covering 94 km². The property,
lies along the contact of the Precambrian basement
with the overlying Paleozoic sedimentary cover
and shows potential for epithermal gold and
SEDEX-type Pb-Zn mineralization. Ankaramy is
located 20 km northeast of the AndavokoeraBetsiaka gold district.
In August 2006, Majescor announced the results of a
reconnaissance surface sampling program conducted
on the property. Anomalous grades reaching 81.7 g/t
Diamonds
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Majescor Resources 2006 Annual Report
17
ANKARIMBELO – Fianarantsoa province
50-50 Joint Venture with Madagascar Mining
and Development SARL (“MMD”). Target:
Kimberlite-hosted diamond deposit amenable to
open-pit mining. The property hosts the only two
known kimberlite occurrences in the country,
discovered by Majescor and MMD in 2005. Pan
African Mining Corp. is actively exploring for
diamonds on ground adjacent to Ankarimbelo.
100% owned. Target: Kimberlite-hosted diamond
deposit amenable to open-pit mining. The property
straddles the Betsimisaraka suture, a major
Archaean/ Palaeoproterozoic structural zone which
marks the closure of the Mozambique ocean. The
property consists of 137 map-designated claims
covering 856 km².
The Ankarimbelo property is located in
Fianarantsoa
province
of
southeastern
Madagascar. The property comprises 238 mapdesignated claims with a surface of 1,487 km².
The Antsakabary property consists of 137 mapdesignated claims, covering 856 km² of
Precambrian ground prospective for diamonds
located in the Mahajanga Province of northern
Madagascar.
The property was staked by
Majescor in February 2007.
The property hosts the only two known kimberlite
occurrences in the country, discovered by
Majescor and MMD in 2005, subsequent to a
targeted program of regional and follow-up stream
sediment sampling for kimberlite indicator
minerals.
The Antsakabary property straddles the
Betsimisaraka suture, a major Archaean/
Palaeoproterozoic structural zone which marks the
closure of the Mozambique ocean as Gondwana
formed. The suture zone has been interpreted to
extend all the way north to India.
In September 2006, the Joint Venture conducted a
brief stream sediment sampling program on the
Ankarimbelo property. A bulk sample was
collected near the location where the Bureau de
Recherches Géologiques et Minières de la France
(“BRGM”) reported the discovery of a “diamond”type stone. A second sample totalling 4.6 m3 of
stream sediments was collected 10 km upstream
from the first sample, and was processed onsite
using a small prospecting jig.
The property’s diamond potential will be assessed
in 2007 through systematic bulk sampling of
stream sediments in search for diamonds and
kimberlite indicator minerals.
In April 2007, Pan African Mining Corp. of
Vancouver announced the presence of a series of
aeromagnetic targets with diamond potential on its
permits located adjacent to the Ankarimbelo
property.
ANTSAKABARY – Mahajanga province
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Majescor Resources 2006 Annual Report
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Majescor Resources 2006 Annual Report
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