Diamonds North Resources Ltd
Targeting Canada's Next Diamond Mine
Message: Diamonds North and Uranium North Acquire Gold Property in Washington State,
Exploration is Underway
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2012) -
Uranium North Resources Corp. (TSX VENTURE:UNR) and Diamonds North Resources Ltd. (TSX VENTURE:DDN) ("the "Companies") announce the acquisition of the Pierre Creek Gold property in Stevens County, Washington State. Exploration work on the property is already underway.
The exploration target at Pierre Creek is a high grade gold-silver skarn deposit similar to the Buckhorn Deposit which is located 70 kilometres to the west. The Buckhorn Mine is a high grade, one million ounce underground gold mine owned by Kinross. It is currently the third highest grade gold deposit in production in the United States.
The Companies have observed several similarities between the Pierre Creek Property and the Buckhorn Deposit area. Both areas occur in comparable geology with rocks of the same approximate age, and both are proximal to gold bearing iron ore skarn deposits grading up 3 to 4.5 g/t gold. The three historic gold bearing iron ore skarn mines that are within the vicinity of Pierre Creek lie along major lineaments. The property also covers the extension of three major lineaments, numerous mineralized showings and a broad alteration zone associated with skarn deposits.
"The similarities to the Buckhorn Mine area and its location, only 82 kilometres by existing road to the Kinross Mill, combine to make Pierre Creek a very exciting property," says Mark Kolebaba, President and CEO of the companies.
Initial stages of exploration will consist of mapping, sampling and magnetic surveys. Reports of geological and geophysical work, including 5 drill holes were completed between 1990 and 1994 by Homestake, Chevron and Pathfinder. Results for this work are not available.
The Pierre Creek property has a 0.25% royalty payable to a consulting geologist. The royalty may be purchased at any time for the value of 300 ounces of gold. The 2437 acre property is comprised of 1797 acres of federal land and 640 acres state lease. The 640 acre state lease is subject to the terms of the state mineral prospecting lease as prescribed by the State of Washington.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral deposits in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining low exploration costs. The Companies are actively seeking joint venture partners for their northern Canadian projects as they represent significant opportunities.
Graham Gill P.Geo and Bruce Kienlen P. Geol will be the Qualified Persons as defined by National Instrument 43-101 reviewing the data collected and overseeing the project.
On behalf of the Board of Directors,
Mark Kolebaba, President & CEO
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. Grams per tonne are noted as g/t. All dollar amounts are expressed in Canadian dollars, unless otherwise specified.
FOR FURTHER INFORMATION PLEASE CONTACT: Troy Shultz
Diamonds North Resources Ltd.
Manager, Corporate Communications
(604) 484-7143 (FAX)
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