|DIAMONDS NORTH RESOURCES LTD. : http://www.diamondsnorth.com/ : News Releases 2005|
Wed Jun 1, 2005
Uranium Potential Confirmed on Thelon Diamond Project
|Vancouver, June 1st, 2005 -- Diamonds North Resources Ltd. (DDN -- TSX Venture) reports that Pathfinder Resources Ltd. (TSX-V: PHR) has completed a preliminary review of historic uranium data over the Thelon property in the Northwest Territories. Pathfinder informs Diamonds North that the data review has revealed several occurrences of radioactive boulders within the property including sandstone boulders with elevated uranium values up to 0.13% U3O8. One of the boulder occurrences forms a 3 kilometre wide glacial dispersion train that extends for 20 kilometres. The up-ice source for the boulders has not been determined and based on the known glacial movement and the size and extent of the Thelon property, it is likely that potential bedrock uranium sources occur on the property.
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
For further information, please contact:
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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