Diamonds North Capitalizes on Commodity Opportunities
Vancouver, BC, April 14, 2005 - Diamonds North Resources Ltd. (TSX-V: DDN) reports it has signed a memorandum of understanding (MOU) with Pathfinder Resources Ltd. (TSX-V: PHR), whereby Pathfinder can earn an 80% interest in uranium rights in Diamond North's Thelon exploration permits which cover more than 3.5 million acres of land within and peripheral to the southeastern Thelon Basin located approximately 500 kilometres east of Yellowknife, Northwest Territories, Canada.
Under the terms of the MOU, Pathfinder is requires to make a cash payment of $100,000, staged issuance of 2 million shares, and exploration expenditures of $4 million over 3 years to earn an 80% interest in the uranium rights. Diamonds North will retain a 20% interest which is carried to completion of a bankable feasibility study on any uranium deposits found on the property. Pathfinder will operate the uranium exploration programs.
Diamonds North remains committed to and focused on exploring the diamond potential of all 27 million acres of prospective ground it currently holds. The Company also recognizes that this large land position offers other exploration opportunities in the form of other commodities that may benefit its shareholders. This transaction with Pathfinder demonstrates how Diamonds North can maximize the potential value of other commodities on its land while maintaining its focus on discovering Canada's next diamond mine.
The Thelon Basin is geologically similar to the prolific Athabasca Basin located about 300 kilometres to the south. The Athabasca Basin hosts a number of world-class unconformity-type very high-grade uranium deposits, which have been discovered at depths to 800 metres. The Thelon Basin has a number of unconformity-related uranium prospects, however, due to its more remote location; it has not received the intensity of exploration accorded to the Athabasca Basin. Major uranium mining companies actively exploring in the Thelon Basin include Cameco and Cogema.
The 2005 exploration program will comprise extensive regional till and soil sampling; several size fractions of the samples will be analyzed using multi-elements ICP in order to identify areas of higher priority to be flown with physical surveys.
"The Thelon Basin is today at the stage of exploration that the Athabasca Basin was in the early 1970's when peripheral basement-hosted deposits had been known but the importance of the sub-sandstone unconformity-type uranium deposit had not been recognized. Given the close geologic similarities of the Thelon and Athabasca Basins, I believe the Thelon Basin has been vastly under explored and potential for McArthur River and Cigar Lake scale deposits exists," states Vic Tanaka, President of Pathfinder Resources. Mr. Tanaka was exploration manager of Asamera Minerals Ltd., one of the partners in the properties that covered the McArthur River, Cigar Lake and Dawn Lake deposits. The McArthur River and Cigar Lake uranium deposits are among the largest unconformity uranium deposits ever discovered.
Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.
ON BEHALF OF THE BOARD OF DIRECTORS
Mark Kolebaba
President & CEO
For further information, please contact:
Diamonds North Resources Ltd.
Corporate Communications: Nancy Curry
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Website: diamondsnorthresources.com
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