Diamonds North Resources Ltd
Targeting Canada's Next Diamond Mine
Diamonds North Resources Ltd. Vancouver, BC., TXS.V : DNN is an exploration stage company engaged in he acquisition and exploration of diamond mineral properties in Canada.
Established in 2002, Diamonds North has since evaluated over 300 million acres of prospective land in the Northwest Territories and Nunavut. The Company has narrowed its focus on 7 million promising acres, comprising one of the largest portfolios of diamond prospective terrain in Canada.
The principal properties are ocated in orthern Canada throughout Nunavut (“NU”) and the Northwest Territories (“NWT”).
Discovered 17 new kimberlites
Advanced 8 kimberlites to core drill sampling
Innovative exploration process proven effective.
Discovered a Nickel-Copper-Cobalt prospect
Drill tested 57 targets
Over the past year Diamonds North Resources' Amaruk project advanced the Company closer to its goal of discovering an Ekati or Diavik size diamond deposit. In the past, we excelled at project generation and land acquisition; in 2007, we successfully redirected that same energy and enthusiasm into target generation, discovery and evaluation. The numerous accomplishments made on our Amaruk project have differentiated Diamonds North from its peers. Our innovative and relentless approach to exploration, we believe, positions us one step closer to our goal. A few accomplishments that come to mind include:
Bulk Samples – Results Pending
Tuktu Complex – 20 tonnes
Qavvik Cluster - 15 tonnes
7 new kimberlites – Results Pending
29 kimberlites in total
Tunerq Nickel prospect
Initial program indicates grade potential 35 m of 1.05% NI including 9 m of 2.49%
For 2009, management has prepared a $2 million dollar exploration budget, a significant decrease from the current year’s $16 million exploration programs. The budget will be funded by with remaining flow-through expenditure obligations from this summer financing. Final budget amounts and specifics for work to be undertaken will be determined in the spring of 2009.
• Senior employees and a consultant of the Company agreed to defer 10% of their salaries or fees. This amount will accrue as a debt owing by the Company and shall not bear interest. At the Company’s election, this debt can be satisfied in cash and/or common shares.
• During the quarter, the Company reduced land positions on the following projects Arnaq 15,000 acres, Kidme 27,0000 acres, Siku 129,000 acres, Ualliq 47,000 acres and Ualliq 50/50 134,000 acres.
The Amaruk Project is situated in the heart of the Pelly Bay Diamond District of Eastern Nunavut, where Diamonds North Resources is the dominant landholder. The Company is focused on more than 3 million acres of ground in the region based on the presence of abundant indicator mineral dispersions and kimberlite float occurrences within a central core block spanning an area of about 80 kilometers.
For spring 2009, the Company has proposed a 40 kilometre ground geophysical survey surrounding the Tuktu and Qavvik kimberlites. A final program will be prepared, once all the 2008 data has been reviewed
Hepburn - 100% Owned
The Hepburn property is located along the western margin of the Slave Province in the Northwest Territories; the most prolific diamond terrain in North and South America. Within this region are two producing diamond mines, the Ekati and Diavik Diamond Mines, with another two in development.
Airborne geophysical surveys conducted over the property have led to the identification of over 200 kimberlite targets, ranging from 1 to 8 hectares in size.
Location, compelling mineral chemistry and the presence of numerous high-priority targets position Hepburn as a leading Canadian diamond exploration property.
Banks Island - 100% Owned
Banks Island has developed from a grassroots exploration project, to becoming one of the company's key properties, in a relatively short amount of time. It has emerged with the potential to become one of Canada's principle diamond discoveries.
Limited stream samples taken from the property have yielded kimberlite indicator minerals, including a high proportion of G10 garnets suggesting the potential for diamondiferous kimberlite.
Airborne geophysics conducted over the property has led to the identification of over 65 anomalies. One significant target has been identified that could be as large as 12 to 30 hectares in size and may be the source of the G10 garnets.
In 2008, the Company conducted a program detailed ground geophysics and prospecting to delineate targets for drill testing. The proposed budget was under $1 million.