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Diamonds North Resources Ltd

Targeting Canada's Next Diamond Mine

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Amaruk Shows Improvement With Beluga 3 Kimberlite

posted on Apr 29, 2009 02:03PM

April 29, 2009

Diamonds North Resources Ltd.: Amaruk Shows Improvement With Beluga 3 Kimberlite

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2009) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces diamond results for 7 new kimberlites discovered on its 100% owned Amaruk property in the Pelly Bay Diamond District of Nunavut.

The 7 kimberlites discovered in 2008 were processed for macrodiamonds using dense media separation (DMS) with a 0.50mm screen size cut-off. As a result, diamonds of less than 0.50mm were not recovered. The diamond results for the 7 kimberlites are shown in Table 1 below. It is noteworthy that these samples of approximately 1 tonne each are large enough to sample the microdiamond population, they are relatively small for grade prediction, and any reference to grade is an approximation of each sample not the kimberlite body. The Company uses this information as a tool for prioritizing diamondiferous kimberlite discoveries for further exploration.

Of significance are the results of Beluga 3 sample which returned a grade of 0.2 carats/tonne and which shows the presence of coarse diamonds. Two stones on the 1.18mm and 2 stones on the 0.85mm screens classified as fragments that are less than 40% of their original size suggesting that this kimberlite contains large stones.

The Beluga 3 kimberlite also exhibits a very subtle magnetic signature which is distinctly different than the signatures of the other kimberlites found to date on the Amaruk property. The subtle nature of the geophysical signature opens up the possibility of new discoveries in the project area which will demand much more detailed magnetic data collection particularly in areas of unexplained kimberlite indicator mineral trains. This detailed data collection will be an important part of the 2009 exploration campaign.

"The Beluga results are very encouraging. Each year of exploration at Amaruk the Company has been successful in increasing the stone size distribution and now we are seeing the grade improve. The Beluga kimberlite, which shows higher grade, is a very subtle geophysical target. The 2009 strategy will be to focus on more subtle geophysical targets in areas with good geochemistry," says Mark Kolebaba, President and CEO of Diamonds North.

Table 1: Diamond Results by Dense Media Separation of Individual Kimberlites
----------------------------------------------------------------------------
           Drill
            hole  Weight         0.500   0.600   0.850   1.180
Kimberlite   Dip     (kg)  TOTAL    mm      mm      mm      mm  (i) ct/tonne
----------------------------------------------------------------------------
Beluga 3     -90    1074      32     1      21       8       2         0.201
----------------------------------------------------------------------------
CB-27        -90    1074      12     1       7       2       2         0.093
----------------------------------------------------------------------------
Qavvik-7     -65  1139.5      11     7       3       0       1         0.056
----------------------------------------------------------------------------
Qavvik-8     -75  1149.5       5     0       3       2       0         0.034
----------------------------------------------------------------------------
Tuktu-10     -75  1201.9       0     0       0       0       0           N/A
----------------------------------------------------------------------------
Qavvik-10    -90     879       0     0       0       0       0           N/A
----------------------------------------------------------------------------
Qavvik-9     -90   968.5       0     0       0       0       0           N/A
----------------------------------------------------------------------------
The Qavvik 7 kimberlite sample was collected using conventional diamond
drilling while the remaining kimberlite samples were collected using reverse
circulation drilling.

(i) Grades are only approximate as they are derived from small samples and
are not to be relied upon except as a tool to prioritize discoveries.

As part of an ongoing initiative to develop more effective exploration procedures, Diamonds North is now using DMS as an initial diamond recovery method instead of caustic fusion on its drill cuttings at Amaruk. Amaruk is a proven diamondiferous kimberlite field where numerous discovered kimberlites have contained very high microdiamond counts. This process is over 95% less expensive than caustic fusion and it enables the company to focus in on the kimberlites with larger stone potential more effectively, with the understanding that the liberation of stones above the 0.50mm screen may not be 100% complete and stones below this size will not be recovered.

The CB-27 kimberlite produced a grade of nearly 0.1 carats/tonne, shows coarse stone size distribution and also returned a fragmented stone on the 1.18mm screen which is estimated to be less than 40% of its original size.

Qavvik-7 and Qavvik-8 returned diamonds above the 0.50mm mesh and while the remaining three kimberlites returned no stones above the 0.50mm screen, they cannot be deemed barren at this point.

The drill core and chips were logged in secure facilities at the Amaruk field camp by geoscientists. Samples were sealed with security tags and shipped to either SGS Lakefield Laboratory or Saskatchewan Research Council Laboratory (SRC) for processing.

Only the Qavvik-7 kimberlite sample was processed by DMS by SGS Lakefield and the concentrate sent to SRC for grease table sorting and diamond picking. All other kimberlite samples were sent directly to SRC for complete DMS processing, sorting and picking. The sample material was sorted, weighed and crushed prior to processing where necessary. A diamond concentrate was produced using a 1 tonne per hour Bateman Dense Media Separation plant with a 0.50mm screen size cut-off at SGS Lakefield while the SRC utilized a 5 tonne per hour DRA Dense Media Separation plant with a 0.50mm screen size cut-off. A very small amount of unprocessed kimberlite material is retrieved from the DMS plant during clean-up after each sample. This kimberlite material is then partially digested and picked for diamonds. Any diamonds recovered are reflected in the above table.

SRC is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for specific registered tests. As part of an ongoing Quality Control & Quality Assurance program, Diamonds North will conduct reviews and audits of results.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons reviewing these projects. They are responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results.

Diamonds North Resources is focused on discovering Canada's next diamond mine. The Company is rapidly evolving and committed to building long-term value through ongoing diamond discoveries.

On behalf of Diamonds North Resources Ltd.

Mark Kolebaba, President & CEO

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