Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

December 01, 2009 16:00 ET

Diamonds North Recovers Larger Diamonds from Beluga-3

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces the recovery of larger stones from the Beluga-3 kimberlite on its 100% owned Amaruk Property located in Nunavut, Canada. A 6.7 tonne sample collected by reverse circulation drilling and processed by dense media separation yielded a total of 126 diamonds above the 0.5 mm mesh including 9 stones on the 1.18 mm mesh and 1 stone on the 1.70 mm mesh.

The diamond recovered from the 1.70 mm mesh measures 2.6 mm x 2.0 mm x 1.0 mm and is a fragment with an estimated 60% loss. In addition, 5 of the 9 diamonds on the 1.18 mm screen are fragments with varying characteristics (4 of the stones show an estimated 60% loss). A high proportion of the diamonds recovered are white, clear octahedrons (see photos at http://www.diamondsnorthresources.com/flickrgallery/).

"The recovery of a diamond fragment on the 1.70 mm screen from a small sample is what we needed to see from Beluga–3. This result not only validates our new targeting strategy of testing kimberlite with a subtle magnetic signature but provides a new kimberlite body requiring a larger bulk sample," says Mark Kolebaba, President & CEO of Diamonds North.

KimberliteWeight (t)TOTAL0.50 mm0.60 mm0.85 mm1.18
mm
1.70 mm
 Beluga 36.712612673791

The sample was designed to test Beluga-3 for larger stones before committing to a more costly bulk sample. The collection cost using the reverse circulation drill was less than $200,000 compared to the use of a core drill which would have cost approximately $1,000,000. The recovery of a diamond on the 1.70mm screen warrants the collection of a larger sample.

The Company has successfully joint funded the development of a low cost, light weight bulk sampling drill that utilizes reverse circulation without percussion to reduce and or eliminate diamond breakage. Plans to mobilize the drill to Amaruk are being considered. Estimated collection cost with this drill rig is $10 per kilogram in contrast with core drilling which is approximately $150 per kilogram.

An 851 kilogram Kanguq kimberlite sample was also processed by dense media separation. No diamonds above the 0.5 mm mesh were recovered. It is important to note that while Kanguq kimberlite does not warrant further work, it represents a new kimberlite cluster on the property.

Drill chips were logged in secure facilities at the Amaruk field camp by geoscientists. Samples were sealed with security tags and shipped to Saskatchewan Research Council Laboratory (SRC) for processing by dense media separation. SRC is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for specific registered tests. As part of an ongoing Quality Control & Quality Assurance program, Diamonds North will conduct reviews and audits of results.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons reviewing these projects. They are responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results.

About Diamonds North
Diamonds North Resources is rapidly evolving and committed to building long-term value for shareholders through ongoing discoveries and leveraging business opportunities from our vast land holding.

On behalf of Diamonds North Resources Ltd.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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