Dianor, Metalex find 5,216 diamonds at Mori JV
2008-06-25 16:55 ET - News Release
See News Release (C-DOR) Dianor Resources Inc
Mr. John Ryder reports
DIANOR INC.: ORANGE, PURPLE AND OTHER COLOURED DIAMONDS PREDOMINATE IN DRILL CORES FROM MORI JOINT VENTURE PROPERTY IN ONTARIO
Dianor Resources Inc., in conjunction with its joint venture partners, Metalex Ventures Ltd. and Mori Diamonds Inc., has received complete results for 13 drill holes drilled on the Mori joint venture properties located three kilometres northeast and northwest of the Leadbetter diamond property in the Wawa area of Ontario. (Refer to Dianor's news release in Stockwatch on Jan. 14, 2008, for initial drill results.) Greater than 50 per cent (52.4 per cent) of the 5,216 diamonds recovered were coloured diamonds. The coloured diamonds range from brown (26.8 per cent), grey (14.0 per cent), yellow (5.5 per cent), green (5.1 per cent), orange (0.8 per cent), purple (0.1 per cent), amber (0.1 per cent) and black (0.1 per cent). One pink diamond was also recovered. The 10 largest diamonds recovered were commercial-sized (plus 0.85 millimetre) coloured stones (eight brown, one yellow and one grey) that range in weight from 1.0583 to 2.6327 milligrams. Natural fancy coloured diamonds are very rare and expensive, with orange and purple amongst the rarest and most desirable colours. The main host rocks are conglomerates of Archean age, 2.697 billion years old (see the company's news release in Stockwatch on April 4, 2007), unique and amongst the oldest diamond-bearing occurrences in the world. The NQ drill cores were processed by autogenous (attrition) milling at the CF Minerals Research Ltd. laboratory in Kelowna, B.C., to recover indicator minerals followed by caustic fusion to recover diamonds.
The coloured diamonds recovered ranged in size from 0.075 to 1.32 millimetres and were present on all screen sieve sizes from plus 75 to plus 850 microns.
LARGEST INDIVIDUAL COLOURED DIAMONDS MEASURED
(XYZ axes (microns (i)))
Colour Sieve size (mm) X Y Z
Brown 0.850 1,122 1,212 803
Grey 0.850 1,013 886 815
Yellow 0.850 1,323 1,189 371
Green 0.600 840 1,114 537
Orange 0.425 666 567 420
Purple 0.150 132 270 227
Amber 0.300 526 526 249
Black 0.425 510 428 463
Pink 0.300 425 441 407
(i) One thousand microns equals one millimetre.
Furthermore, the colour characteristics of the diamonds recovered from the drill core on the Mori East block consist of 47.6 per cent white stones and 52.4 per cent coloured diamonds. The percentage of white to coloured diamonds was consistent in each of the drill holes, with little variation between the holes. Minor variations occurred between the percentages of each colour type in different drill holes, but over all, the following order of abundance was found brown greater than grey greater than yellow greater than green greater than other colours (orange, purple, amber, black and pink). (Photos will be posted on Dianor's website by end of day.)
The results, in general, demonstrate the persistence of the diamondiferous conglomerate in the area and more specifically indicate the highly diamondiferous nature of the conglomerate on the Mori East block of claims and suggests proximity to source for the 5,079 diamonds recovered from 6,209.47 kilograms of drill core generated by the drilling. The three-kilometre-long, diamond-bearing conglomerate band on the Mori East block is situated on the east side of the Mildred Lake fault and is the faulted eastern continuation of the main diamond-bearing Leadbetter conglomerate, located approximately 3.5 kilometres to the south. Exposures of the conglomerate attain thicknesses on surface of up to 180 metres and dips steeply to the north-northwest. Drilling results indicate that the true thickness of the diamond-bearing conglomerate ranges from 87.6 to 121 metres.
Diamond indicator minerals were recovered through the autogenous (attrition) milling of the drill cores and outcrop samples of conglomerate at C.F. Minerals Research in Kelowna. The diamond indicator minerals are comparable with those recovered from the Leadbetter conglomerate 3.5 kilometres to the south. They include group I eclogitic garnets, chromites, chrome diopsides and olivines with compositions similar to those minerals found associated with diamond-bearing kimberlites. The abundance of olivines and diopsides suggests a proximal source for these minerals.
Results for further three drill holes drilled in the Mori East block by Mori Diamonds have not been received as of the date of this news release.
Processing of core from the three holes drilled on the Mori West block recovered 137 diamonds from 975.41 kilograms of core, suggesting that conglomerate of the Mori West block is more distal to diamond source. The indicator mineral suite from this area also confirms the notion that the conglomerates were deposited farther from the diamond source rocks.
Management is very pleased and pleasantly surprised with the abundance of coloured stones, variety and size recovered from NQ drill cores. The drilling results to date are promising, with diamond counts continuing to average a promising one diamond per kilogram in a continuous diamondiferous conglomerate. The presence of rare coloured diamonds is believed to be the first such occurrence in Ontario and, in conjunction with the company's recent discovery of rare coloured diamonds in a similar geological setting in Quebec, marks a new geological target for coloured diamonds.
Carl Verley, PGeo, is the qualified person responsible for the technical contents of this news release.
Amendment to financing terms
Due to market conditions, Dianor and Northern Securities Inc. have decided to amend the terms of the previously announced financing (see Dianor's news release in Stockwatch on June 11, 2008), consisting of a best-efforts private placement of up to $7.8-million in units at a price of 30 cents per unit and of up to $5.2-million in flow-through units at a price of 35 cents per flow-through unit, for total gross proceeds to Dianor of $13-million. The terms of the financing have been amended such that the issue price of the units is now 25 cents per unit and the issue price of the flow-through units is now 30 cents per unit.
Each unit will consist of one common share and one common share purchase warrant. Each of the warrants under the units will entitle the holder to purchase one additional common share of Dianor at a price of 30 cents for 24 months from the closing date.
Each flow-through unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Dianor at a price of 32 cents for 24 months from the closing date.
Furthermore, the consideration payable to Northern has been amended such that Dianor has now agreed to pay Northern a cash commission of 8 per cent of the total proceeds from the private placement, payable upon closing, and issue compensation options equal in number to 10 per cent of the total number of units and flow-through units sold, which will entitle Northern to purchase, at an exercise price equal to 25 cents, one common share and one common share purchase warrant. The warrants in the compensation options may be exercised at any time and from time to time for a period of 24 months following the closing of the proposed private placement at an exercise price of 30 cents
