Diadem Resources Ltd.
TSX VENTURE : DRL

Diadem Resources Ltd.

May 11, 2006 11:54 ET

Diadem to Commence Drill Program on Duquesne West Gold Project

TORONTO, ONTARIO--(CCNMatthews - May 11, 2006) - Diadem Resources Ltd. (TSX VENTURE:DRL) announced today that it has completed its initial review of all technical data relating to the Duquesne West gold project (the "Project") in the Destor-Porcupine fault zone in Duparquet Township, Quebec, 32 km north of Rouyn-Noranda. Based upon this review, Diadem is proceeding to undertake a 5,000 meter drilling program. Bids are being solicited from drilling contractors to undertake the work, commencing as early as June 2006. While arranging for the drill program, the Company is compiling all of the existing data, including data generated by earlier work on the Project by Kinross Gold Corporation and Queenston Mining Inc.

Under an agreement with Jack Stoch Geoconsultant Services Inc. and Globex Mining Enterprises Inc. Diadem can earn a 50% fully vested interest in the Project (with the right in certain circumstances to increase that interest to 57.5%) by spending $6.0 million over three years on exploration and development, of which the first $1.0 million is to be spent in the period to June 30, 2007. The drill program will be part of the first exploration program.

The Duquesne West claims cover approximately three kms of the Destor Porcupine Fault Zone which represents a major gold-bearing structure with numerous gold deposits scattered along its 240 km strike length. Previous diamond drilling (216 drill holes) has demonstrated that the gold mineralization on the Duquesne West property is structurally and lithologically controlled and related to a period of sulphide mineralization commonly associated with ultramafic and mafics (intermediate) units, and also with quartz-feldspar porphyry intrusives.

Gold mineralization has been interpreted by previous operators as being hosted by five significant semi-continuous zones that all strike roughly east-west and dip from 65 degrees to 90 degrees south. Additional gold mineralization occurs as isolated drill intercepts outside of the interpreted zones and several require additional testing. One such area is the Nip Zone which returned a drill intercept of 9.9 g gold per tonne over 3.5 meters core width.

Of particular note is the Liz Zone which hosts gold mineralization over a strike length of 200 meters and a known depth from -200 meters to -500 meters. The zone is outlined by 8 contiguous drill intercepts above 3.0 g gold per tonne with an average width of 6.4 meters and with values up to 6.9 g gold per tonne over 11.2 meters. The zone remains open along strike to the west and down dip. One hole tested the zone at -750 meters depth and intersected 3.2 g gold per tonne over 4.7 meters.

The Company's current exploration and drilling program intends to build upon the results of the earlier Kinross and Queenston exploration efforts. John P. Thompson, P. Geol. is the Qualified Person who is supervising the exploration program for Diadem on the Duquesne West gold project.

Diadem continues to transition itself from having primarily a diamond and gold exploration focus to an expanded focus which includes production and near-production mining opportunities, especially those related to gold. The acquisition of the option to acquire up to a 57.5% interest in the Duquesne West gold project is a step in that transition. The Company also currently is considering other such opportunities. At the same time, Diadem continues work on its exploration projects, the Franklin diamond project in the Northwest Territories, Canada and the Diokeba, Dalakan, Sinzeni and Tinkeleni gold properties in Mali, West Africa.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained in this news release.

Contact Information