Midex Gold Corp has entered into an agreement with Douglas Lake Minerals to develop the Magembe diamond property in Shinyanga Region of Tanzania.



Midex Gold President Morgan Magella stated: "Under the terms of the agreement, Midex has the right to enter, sample, drill and explore for minerals on the property as defined by the prospecting license granted by the Government of Tanzania under the Mining Act of 1998."



He said Douglas Lake Minerals would have one million shares of Midex and added: "To earn 100% interest in the property, Midex's obligation is to commit $2 million in exploration expenditures prior to the second anniversary of the agreement."



The Magembe property is located near the Williamson (Mwadui) Mine, the world's largest diamond pipe and one of Africa's most prolific diamond producers. The property is part of a 2km buffer zone surrounding Mwadui that was created as part of the original mine development in the 1940s and 50s.



According to Midex Gold, 41 diamonds and diamond cleavages had been recovered from 12 of the 60 samples gathered during the 2008 exploration program.



The company added: "Because of the past local native mining activity, the recent 80 carat diamond discovery, and our 2008 exploration results, management believes there's considerable potential for a commercially profitable diamond mine."