By GEOFF MATTHEWS
Money Editor

...If all goes according to plan, an Ottawa company hopes to be hauling diamonds out of the ground in western Quebec within the next couple of years.
...The deal is still shrouded in secrecy, but the company, known at this stage only as 3929311 Canada Inc., has begun the slow process of going public to give it the financial clout to explore and develop its sprawling property which stretches from near Fort Coulonge, Quebec almost to Pembroke.
...It is going the reverse takeover route, and has signed a letter of intent with Leitrim Group Inc., a publicly traded capital pool corporation based in Halifax which had been looking for a junior technology partner to make its mark in the world.

Hot Rocks

...Leitrim got hooked up with the numbered Ottawa company almost by accident, said Leitrim co-founder and board chairman Brian Penny.
..."I was introduced to Desmond Burke (the man who heads 3929311 Canada Inc.) by a mutual friend," said Penny. "When I heard it was about

a diamond play, I almost burst out laughing."
...However, after listening to Burke's presentation Penny said he was impressed enough to ask for an independent assessment of the site, which comprises 850 claims and more than 200,000 acres of property.
...That review indicated "all the calssical indicators" of diamonds are present at the site, Penny said, which was enough to convince him and his partners to sign on.

Scratching surface

...There are still regulatory hurdles to climb and sharehold-ers to convince, he said, but that process should be complete by November, at which time the company will ahve a new name and be trading on the TSX Ven-ture Exchange.
...It is expected to issue more than 18 million shares at a unit price of 20 cents.
...Completion of the deal will also clear the way for serious exploration, including test hole drilling in the claim area.
...Burke has been actively seek-ing diamonds in west Quebec since the mid-1980s. He has also prospected in Guyana and Russia.

geoff.matthews@ott.sunpub.com