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Exploration
Geology
Mineral Rights
Diamonds in Canada’s North |   Ownership of Diamond and Other Mineral Rights Sanatana owns the diamond and other mineral rights, excluding uranium rights, to the prospecting permits that comprise the Mackenzie Diamond Project (shown above). Prospecting permits allow the holder the exclusive right to locate mineral claims within the permit area. North of 68 degrees north latitude, prospecting permits may be held for a period of 5 years. South of 68 degrees north latitude, prospecting permits may be held for a period of 3 years. The Mackenzie Diamond Project is comprised of 60 prospecting permits located north of 68 degrees north latitude, and 322 prospecting permits located south of 68 degrees north latitude. Assessment and Bonding Requirements In order to maintain a prospecting permit in good standing, the holder must post a bond at the start of each applicable work period and complete prescribed levels of exploration work within the permit area during each applicable work period. North of 68 degrees north latitude, the required bond and exploration work is 10 cents per acre during an initial two-year work period, 20 cents per acre during a second two-year work period and 40 cents per acre during a final one-year work period. South of 68 degrees north latitude, the required bond and exploration work is 10 cents per acre during an initial one-year work period, 20 cents per acre during a second one-year work period and 40 cents per acre during a final one-year work period. Provided the required exploration work is completed within the applicable work period, the bond is returned to the holder after submission of a report of the work completed. In the third term (year 5 for north of 68 degrees north latitude, and year 3 for south of 68 degrees north latitude), the landholder may elect to convert land within the permit area to unpatented claims by staking. Excess work from previous prospecting permits may be transferred to new claims. Prospecting permits south of 68 degrees north latitude that were acquired by Sanatana in 2004 have entered the third work term, and thus physical staking is required to retain any land of merit. Pursuant to Canadian mining legislation, land not staked in the third term will revert to the Crown on February 1, 2007 and Sanatana will be prevented from reacquiring mineral rights to this land for a period of one year. Sanatana also has rights in 52 unpatented mining claims which were staked on Sanatana's behalf in Spring 2005. The landholder can hold an unpatented claim for 10 years from the date the claim is recorded if the landholder completes work valued at $4 per acre in the first 2 year term, then work valued at $2 an acre each subsequent year until year 10, when the claim must be taken to lease. | ||
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