Uranium Potential Confirmed on Thelon Diamond Project
One of Diamonds North's key assets is its 27 million acres of land. An inherent advantage to controlling large land positions in under-explored regions is the potential for discovery of multiple commodities. The Thelon diamond project is a clear example of Diamonds North's ability to add value by identifying and pursuing other commodity opportunities through partnerships with no financial risk to Diamonds North.
Mark Kolebaba, President of Diamonds North adds "We will remain focused on our core business of diamond exploration, while benefiting from the potential up-side of a uranium discovery."
Diamonds North is pleased with Pathfinder's initial efforts in gathering and reviewing historic data for the Thelon Basin. The identification of uranium enriched sandstone boulders over the property confirms the uranium potential of the Thelon property and provides focus for the uranium portion of the 2005 exploration program. Pathfinder's management has been involved in the discovery of several uranium deposits in Saskatchewan's Athabasca Basin, including Cigar Lake, which is one of the world's largest high-grade uranium deposits.
The Thelon property covers approximately 2.5 million acres of exploration permits prospective for diamond and uranium. Diamonds North is actively exploring the property for diamonds and has granted Pathfinder an option to earn 80% of any uranium deposits discovered on the property. As prescribed by the agreement, Pathfinder has issued Diamonds North 1,000,000 common shares and completed a cash payment of $100,000. Diamonds North retains a 100% interest in diamonds and a 20% carried interest in any uranium deposits discovered. The Pathfinder shares are subject to a hold period and may not be traded until September 25, 2005.
Exploration plans for 2005 are currently underway and will include an extensive regional till and soil sampling program designed to evaluate the diamond and uranium potential of the property. The objective for 2005 is to identify high priority areas for geophysical surveys. Several of the newly identified uranium enriched boulder occurrences will be further explored in an attempt to establish a glacial cut-off and ultimately trace the boulders back to a bedrock source.
The qualified person reviewing uranium data for the project is John Peters (P. Geo.). The qualified person responsible for diamond exploration is Bruce Kienlen (P. Geol.)
Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and determined to discover Canada's next diamond mine.
ON BEHALF OF THE BOARD OF DIRECTORS
Mark Kolebaba
President
For further information, please contact:
Corporate Communications:
Nancy Curry
Diamonds North Resources Ltd.
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Website: diamondsnorthresources.com
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