Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

October 01, 2009 15:27 ET

Dianor Receives Updated NI 43-101 Technical Report on the Leadbetter Diamond Project

VAL-D'OR, CANADA--(Marketwire - Oct. 1, 2009) - Dianor Resources Inc. (TSX VENTURE:DOR) announces that it has received an updated National Instrument 43-101 technical report, effective September 28, 2009, by C. G. Verley, P.Geo., on Dianor's Leadbetter Diamond Project. This technical report, commissioned by Dianor, will be filed on SEDAR and posted on the Dianor website within the next 10 days. The NI 43-101 report summarizes: all diamond results from the caustically-fused drill core samples from 24 drill holes; DMS processing of test pit samples; indicator mineral data; rubies and sapphire data; gold data; geochemical results of drill cores and surface rock samples; and drilling and ground-penetrating radar studies of the unconsolidated "alluvial" sediments.

The salient points of the updated NI 43-101 report are:

Drilling: Exploration since April 2005 by Dianor consisted of three phases of diamond drilling totalling 157 holes for 47,532.51 metres (108 NQ holes totalling 42,684.68 metres, 38 BQ holes totalling 3,038.83 metres and 11 HQ holes totalling 1,809.00 metres). Diamond-bearing conglomerate was intersected in 17 of the 24 drill holes and based on 7.6 tonnes of split conglomerate core that was fused, the average diamond content (greater than 0.85mm) of the main conglomerate unit was 38 cpht (carats per hundred tonnes). Overall, continuous samples of NQ diamond drill core have returned significant variations in diamond contents, which suggest that high-grade zones in excess of 100 cpht are possible in the conglomerate. Estimated true thicknesses of the high-grade intervals tested to date range from 15.80 to 32.95 metres and average 23.98 metres with diamond content ranging from 113.7 to 281.8 cpht.

A preliminary tonnage was estimated from the drill results with a tonnage of 566 more or less 17 million tonnes for all of the diamondiferous conglomerates (press release July 24th 2007).

Test Pit Sampling: 2005 test pitting of representative surface exposures across the width and breadth of the conglomerate outcrop was undertaken at 105 sites where 94 pits were in conglomerate. The samples, weighing on average 5 tonnes, were processed in 2006 to recover diamonds through a dense media separation ("DMS") plant at SGS Lakefield Research in Lakefield, Ontario. A total of 349 tonnes were extracted and processed, yielding 3,603 diamonds weighing 82.7 carats (press release January 16th 2007). In 2006, four of the original test pits were resampled, but with 70 to 80 tonnes collected at each site. These samples were processed in 2007 by DMS at the Kennecott Exploration Canada Inc. facility in Thunder Bay, Ontario. The 298 tonnes of material processed in Thunder Bay yielded 3,265 diamonds weighing in total 89.47 carats. The largest diamonds recovered were 1.522 and 1.011 carats in size (press release June 11th 2007). Sample grades (including stones recovered in audit of tailings) for the larger samples of conglomerate processed at the Kennecott facility range from 11.69 to 42.53 cpht.

Potential By-Products: Gold values have been reported from all three conglomerate units with 6 samples having values greater than 1,000 ppb Au. The highest analysis was fire assayed and returned a value of 9.01 grams per tonne gold. Gem-quality rubies and sapphires were recovered from DMS concentrates and tails arising from the 2005 test pit samples. These commodities could be significant by-products should a commercial mining operation be established.

Alluvial Diamonds (Recent): Results of a Ground Penetrating Radar (GPR) survey undertaken over an area of approximately 58 hectares of the alluvial plain extending south and west from the exposures of the Leadbetter diamondiferous conglomerate indicate that the maximum thickness of unconsolidated alluvial overburden in the surveyed area is 18 to 19 metres. Confirmation of the nature and thickness of the alluvial sand and gravel was provided by 3 of the 4 hydrogeological drill holes that tested sites within the surveyed area. The survey was successful in imaging several trap sites that are inferred to occur along paleostream drainages. The trap sites have potential for collecting heavy minerals such as diamonds and warrant further testing. It is management's intention to sample the trap sites during the first stage of the upcoming exploration program.

Recommendations:

A staged program is recommended in order to continue the evaluation of the conglomerates. The first phase is processing of drill core from the North Sector with further infill HQ core drilling in order to better define diamond variations in the conglomerates in the North Sector.

The extensive size of the diamond-bearing Leadbetter conglomerate will necessitate taking a number of bulk samples at differing levels throughout the deposit in order to firmly establish a mineral resource/reserve estimate. Underground declines are recommended to reach these zones and acquire bulk samples. The proposed bulk sampling is of sufficient size (50,000 tonnes) to justify the purchase and construction of a Dense Media Separation plant (DMS) on site, in order to expedite result reporting and timely development of the project.

Further metallurgical testing is also recommended in order to determine if cost-effective methods for upgrading the diamondiferous conglomerate can be achieved. Permits are in place to proceed with the 50,000 tonnes bulk sampling.

Expanded testing of the alluvial deposits that flank the conglomerate to the south and west is recommended in order to test the diamond (plus rubies and sapphires) potential of this material.

The estimated cost of the first-phase program is $23 million; second-phase work is estimated to cost $9 million, for a total program cost of $32 million.

Mr. Carl G. Verley, P.Geo is the Qualified Person responsible for the technical contents of this press release.

About Dianor

Dianor is an innovative exploration company focused on advancing diamond exploration properties in the Superior Craton of Canada. The Leadbetter Diamond Project is its most advanced project and is geographically well situated and easily accessible, some 12 kilometres north east of Wawa in Northern Ontario. Substantial exploration work has been conducted on the project since 2005 and in May 2009 the Company received government approval to proceed with a 50,000 tonne bulk sampling programme of the 2.697 Ma old Archean Conglomerate. A preliminary tonnage estimate for this conglomerate is in the range of 549 million to 583 million tonnes (press release July 24th 2007). In addition to diamonds, the conglomerate contains gold, sapphires and rubies (press release January 18th 2007). In 2008 additional diamond discoveries including rare purple diamonds were made by the Company in rocks of similar type, age (Archean) and geological settings (press release March 3rd, April 10th, & May 13th 2008) in Quebec. The Quebec diamond properties have increased our portfolio of low cost, accessible exploration targets. These diamond discoveries (Ontario and Quebec) are both unique and amongst the oldest diamond bearing occurrences in the world.

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