|DIAMONDS NORTH RESOURCES LTD. : http://www.diamondsnorth.com/ : News Releases 2006|
Thu Mar 2, 2006
Diamonds North Increases Northern Uranium Potential
|VANCOUVER, March 2, 2006 - Diamonds North Resources Ltd. (TSX-V: DDN) reports that it has been informed by Pathfinder Resources Ltd, the Thelon Uranium Project operator, that a ground geophysical survey will be conducted later this month to better delineate a six kilometre-long basement conductor located in the northeastern part of the property.
The Thelon Uranium Project is located on the Thelon Basin approximately 500 kilometres east of Yellowknife in the Northwest Territories and is part of Diamonds North's Thelon permits and claims. The Thelon Uranium Project with Pathfinder covers over 1.2 million acres of the 3.0 million acres of land with uranium interests that Diamonds North controls in northern Canada.
Pathfinder's data review indicates that the target conductor was first identified in 1981 by Hudson's Bay Oil & Gas Ltd. (HBOG) during a small (195 line kilometre) airborne electromagnetic survey. HBOG calculated the depth of the conductor source to be approximately 100 metres, which is estimated by Pathfinder to be the depth to the unconformity, the target area for uranium mineralization. According to historical assessment reports, this conductor has never been followed-up.
The HBOG geophysical report on the surveys also noted that the conductor trend may be associated with a fault zone. Both fault structures and related basement conductors are key elements associated with unconformity uranium deposits such as Cameco Corporation's McArthur River and Cigar Lake mines in the Athabasca Basin.
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. The Thelon Basin has a number of unconformity-related uranium prospects, however, due to its more northern location and a 20 year slump in uranium prices; it has not received the same intensity of exploration accorded to the Athabasca Basin.
Pathfinder plans a 7,000 line-kilometre MEGATEM II airborne survey over the majority of the property in June.
Under the terms of the Memorandum of Understanding with Pathfinder (see NR05-11, April 14, 2005), Pathfinder is required to make 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 its projects. Diamonds North also recognizes that this large land position offers exploration opportunities in commodities that may benefit its shareholders. Diamonds North will continue to maximize the potential value of other commodities on its land while maintaining its focus on discovering Canada's next diamond mine.
Diamonds North is a dynamic successful exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.
On behalf of Diamonds North Resources Ltd.
President & CEO
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 or accuracy of this release. 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.
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