Diamonds North Partners With Indicator Minerals in Pelly Bay Diamond District
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/11 -- Diamonds North Resources Ltd. (TSX VENTURE: DDN) and Indicator Minerals Inc. (TSX VENTURE: IME) have entered into an option agreement whereby Diamonds North may earn a 60% interest in the diamond rights on the Barrow Property('the Property') by spending $2,000,000 over five years. The Barrow Property is contiguous to Diamonds North's Amaruk Property in the Pelly Bay Diamond Region in Nunavut, Canada.
'The high quality, reliable data collected by IME is complimentary to the data collected on Amaruk. This transaction provides access to a larger, prospective geological area to test a new generation of kimberlite targets,' says Mark Kolebaba, President and CEO of Diamonds North.
A total of 25 kimberlites have been discovered on the Amaruk property and 90% of the kimberlites processed for diamonds are proven to be diamondiferous. Hundreds of untested anomalies and numerous kimberlite indicator mineral trains remain unresolved, offering high potential for additional kimberlite discoveries on the properties.
Diamonds North will serve as the operator on the Property during the earn-in period and will remain the operator in the joint venture provided it holds the largest single interest in the property.
Details of the material terms of the Option Agreement.
Diamonds North may earn up to sixty percent (60%) interest in any diamond discovery on the Barrow Property by incurring $2,000,000 in expenditures on the Property over five years. To earn an initial 51% interest, Diamonds North must incur $1,000,000 in expenditures by December 31, 2015, of which $50,000 must be incurred before the end of the current year and a total of $200,000 must be incurred by December 31, 2013. To earn an additional 9% interest (for 60%), Diamonds North must incur an additional $1,000,000 in expenditures (for aggregate of $2,000,000) by December 31, 2016.
Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) will be Diamonds North's qualified persons reviewing this project.
About Diamonds North
Diamonds North Resources is rapidly evolving and committed to building long-term value for shareholders through ongoing discoveries and leveraging business opportunities from our vast land holding.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba, President & CEO
Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Diamonds North Resources Ltd.
Troy Shultz
Manager, Corporate Communications
(604) 689-2010
(604) 484-7143 (FAX)
info@diamondsnorth.com
www.diamondsnorth.com