Canadian diamond explorer Stornoway Diamond Corp (TSX: SWY) said Wednesday that it has launched a formal joint venture with two other mining companies on its newly acquired LG-4 diamond exploration project in the James Bay region of Quebec, in which Stornoway hold a 25% stake.
The formal joint venture agreement, which includes Stornoway, Virginia Mines and Soquem, a subsidiary of SGF and Aurizon mines, will see each partner contribute equally to ongoing exploration expenses for the project. Virginia will be the manager of the joint venture.
The project consists of a total of 236 claims on 27 blocks, covering prospective geophysical targets, which were recently identified following a modeling exercise completed by the Mineral Exploration Research Consortium.
Stornoway said that field work already completed during the 2010 summer field season has included prospecting and till sampling over the entire block of claims, under a total budget of $300,000.
Sample processing for kimberlitic indicator minerals will be completed in the coming months, in an effort to help prioritize targets for potential drill testing.
Stornoway is involved in the discovery of over 200 kimberlites in seven Canadian diamond districts.