Diamonds North and Arctic Star to Explore in Canada's Newest Kimberlite District
Indicator and Teck Cominco recently reported the discovery of five kimberlite bodies on the Darby project, with one estimated to be as large as 11 hectares in size. The Arctic Star option agreement applies to claims surrounding the Darby property on three sides. Till samples collected from the property by Diamonds North have yielded indicator minerals indicating that the Darby kimberlite field may extends onto the property. An airborne magnetic survey over the claims has been initiated for drill target delineation.
Under the terms of the agreement, Arctic Star can earn a 50% interest in the property by:
1) Funding bonds on the claims.
2) Issuing Diamonds North 1.5 million shares of Arctic Star.
3) Spending 2.5 million dollars on exploration over 3 years with the first year's expenditures at $700,000.
4) Issuing an additional 100,000 shares for each of the first five kimberlites discovered on the property.
Arctic Star has paid $763,420 in bonds on the claims and will reimburse Diamonds North an additional $238,886 in February 2007 for bonds originally posted by Diamonds North. All bonds are refundable to Arctic Star upon filing of sufficient assessment work on the claims.
This area is Canada's newest kimberlite district. It offers potential for large kimberlites associated with encouraging indicator minerals. The property requires funds for bonding making it an ideal candidate for partnership. By providing the bonding Arctic Star acquired entry into this new kimberlite district giving Diamonds North the capability to continue exploration on the Siku property through the partnership, while focusing its financial efforts on the Amaruk property in the Pelly Bay Diamond District.
Diamonds North recently drilled five kimberlites on the Amaruk project in the Pelly Bay Diamond District (see news release NR06-29) and are awaiting diamond results. The Siku property is located in the Franklin District which is southwest of the Pelly Bay Diamond District. Diamonds North is the dominant land holder in the region.
Diamonds North will operate the project. The agreement is subject to regulatory approval.
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 BOARDS OF DIRECTORS
Mark Kolebaba
President & CEO
Diamonds North Resources Ltd.
Patrick Powers
President & CEO
Arctic Star Diamond Corp
For further information, please contact:
Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.
Telephone:
Facsimile:
Website: www.diamondsnorth.com
Email:
Investor Relations : Tom Yingling
Arctic Star Diamond Corp.
Telephone:
Facsimile:
Website: www.arcticstardiamond.com
Email:
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.