Diamonds North and International Samuel to Explore the Ualliq property
VANCOUVER, August 2, 2006 - Diamonds North Resources Ltd. (TSX-V: DDN) and International Samuel Exploration Corp. (TSX-V: SAZ), announce that the companies have entered into an agreement on the western portion of the Amaruk Property which is located in the Pelly Bay Diamond District of Nunavut. International Samuel has an option to earn a 30 % interest in the newly named Ualliq project covering more than 1 million acres predominantly within the western portion of the Amaruk property.
Kimberlite indicator minerals on the property define several anomalous regions including a discrete 60 kilometre long area prospective for multiple kimberlite intrusions. A strong cut-off associated with several kimberlite indicator mineral clusters supports the possibility of multiple kimberlites on the Ualliq property. Based on the mineral chemistry of the garnets from the area and the proximity to the Amaruk property any kimberlites discovered in the area have potential to contain diamonds. The 2006 exploration program is underway and will include the first detailed airborne geophysical survey plus detailed sampling. After analysis of the data from the current program and time permitting, the companies may drill any resulting priority targets this year (using the drill that is currently located on the central block of Diamonds North's 100% owned Amaruk property).
Under the terms of the option agreement, International Samuel may earn a 30% interest in the property by issuing 2,000,000 shares to Diamonds North and incurring $3,000,000 in expenditures on the property over the next four years. In addition, for each of the first four kimberlite bodies discovered on the Property, International Samuel shall issue 250,000 common shares to Diamonds North. Diamonds North will operate the project.
The Pelly Bay region of Nunavut has emerged as Canada's newest diamond district. Recent kimberlite discoveries on the Amaruk project have yielded very encouraging diamond counts and excellent diamond characteristics (see News Release NR06-13, May 9th, 2006). More recent kimberlite discoveries in the region (Darby Project) confirm the existence of larger kimberlite bodies and the presence of multiple kimberlite fields.
This agreement is subject to approval by TSX Venture Exchange. Graham Gill (P.Geo) is the qualified person under NI 43-101 for this news release.
Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.
International Samuel is a junior resource exploration company focused on diamond exploration in northern Canada.
ON BEHALF OF THE BOARDS OF DIRECTORS
Mark Kolebaba
President & CEO
Diamonds North Resources Ltd.
Conrad Swanson
President & CEO
International Samuel Exploration Ltd.
For further information, please contact:
Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.
Telephone:
Facsimile:
Website: www.diamondsnorth.com
Email:
Investor Relations : Doug Kerr,
International Samuel Exploration Corp.
Telephone:
Toll Free: 1-
Facsimile:
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.