DIAMONDS NORTH RESOURCES LTD. : http://www.diamondsnorth.com/ : Ualliq Project

Ualliq Project

Location: Nunavut
Est. Size: 1,000,000 Acres
Ownership: 100% Diamonds North
30% option agreement with International Samuel Exploration Corp.
Opportunity: Discovery of a new diamondiferous kimberlite field within the Pelly Bay Diamond District


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.

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).

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.
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This page was created on Sat Oct 21, 2006 at 2:42:23 PM Pacific Time.