|DIAMONDS NORTH RESOURCES LTD. : http://www.diamondsnorth.com/ : News Releases 2005
Tue Jul 26, 2005
Diamonds North Identifies New Uranium Opportunities on Diamond Claims
|Vancouver, July 26, 2005 -- Diamonds North Resources Ltd. (DDN -- TSX Venture) reports that it has identified two areas with high uranium potential within the Hornby Bay Basin on its Hepburn Diamond project in Northwest Territories. Diamonds North is reviewing possible JV proposals and invites parties interested in uranium partnerships to contact the company.
A preliminary review of historic data recovered from the assessment files from the region indicate the presence of at least seven known uranium showings on the property with U3O8 values of interest ranging from 0.5% to about 1% (11 to 22lbs per ton) and grab samples as high as 2.72% U3O8 (60 lb per ton). These showings are located in and around sandstone related to the Hornby Bay Basin.
The Hornby Bay Basin is geologically similar to the uranium rich Athabasca Basin in northern Saskatchewan. It hosts a number of unconformity and sub-unconformity related uranium prospects. Due to its more remote location, it has not yet been explored with the same intensity or modern methods used to explore the Athabasca Basin.
While the objective of Diamonds North is to discover Canada's next diamond mine, the company recognizes that its large land positions have the potential of hosting other commodities (Uranium, Gold and Base Metals). To maximize the exploration potential of the company's 27 million acre land position for its shareholders, Diamonds North continues to pursue avenues to capture opportunities for other commodities through partnerships while remaining focused on rapidly advancing its diamonds projects.
Diamonds North has successfully captured uranium potential on its 2.5 million acre Thelon diamond project in the Northwest Territories through an option agreement with Pathfinder Resources Ltd. Under the terms of the agreement, Pathfinder has made an initial cash payment of $100,000 and has issued 1,000,000 shares and may earn an 80% interest in the uranium rights on the project by issuing an additional 1,000,000 shares and completing $4 million in exploration expenditures over 3 years. 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 is funding a $400,000 exploration program which is currently underway. The 2005 exploration program will include extensive regional till and soil sampling to identify areas of higher priority to be flown with geo-physical surveys. Cameco Corporation recently announced they are actively exploring in the Thelon Basin.
B. Kienlen (P. Geol) is one of Diamonds North's qualified person reviewing data for the Hepburn project.
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
For further information, please contact: Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release
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