Dianor Resources Inc.

Dianor Resources Inc.

November 25, 2008 10:10 ET

Dianor Resources Inc.: Update on Ontario & Quebec Diamond Projects

Version française disponible sur www.dianor.com seulement


Dianor Resources Inc. (TSX VENTURE:DOR) is pleased to update its shareholders on the continuing advancement towards bulk sampling of its Ontario flagship diamond property, the Leadbetter Diamond Project in the Wawa area and on its summer exploration activities on the Quebec diamond properties in the James Bay region.

On the Leadbetter Diamond Project the Dianor team and its consultants in the environmental, mining engineering and mineral processing fields have completed further field studies and public meetings as part of the Company's efforts to finalize two mine closure plans prior to formal submittal to the Director of the Ministry of Northern Development and Mines (MNDM). Interagency meetings with representatives of municipal, provincial and federal agencies involved were held on September 26th followed by Public consultation with the residents of Wawa on October 16th. Consultations with First Nations are planned for the coming weeks.

Technical drilling (9 holes) for hydro geological, crown pillar and geochemical studies for the proposed Northern and Central bulk sample declines commenced and were completed in September. Geological HQ core (47.60mm) drilling totaling 11 holes were drilled on 50 metre centre in the Northern part of the Leadbetter property in the vicinity of the proposed decline and were designed to intersect the diamond bearing Leadbetter Conglomerate to further define its continuity, thickness, diamond content and diamond variability. Leadbetter Conglomerate was intersected in 16 of the 20 drill holes recently completed in this phase of work for a total of 2,394 metres of drilling. The data generated is being compiled and evaluated for incorporation into the final Mine Closure plans. Currently it is anticipated that the two mine closure plans will be finalized by Dianor and its consultants, GENIVAR, Hatch Engineering, Great Lakes Environmental Services and Dickson Management Services by the end of December.

The bulk sampling programme is designed to excavate up to 50,000 tonnes of diamond bearing conglomerate from two underground ramps in the Northern and Central Sectors; to extract the diamonds by on-site DMS processing in order to accumulate parcels of diamonds from the Leadbetter conglomerate to determine diamond grade and pricing that can be used to appraise the feasibility of the project (press release August 21st 2008). The Company anticipates during the programme that up to 50,000 tonnes of diamond bearing conglomerate will be extracted and processed on site to recover 12,000 to 20,000 carats of diamonds. The diamond recovery estimate is based on results from both the mini-bulk sampling of 637.75 tonnes of conglomerate and on diamond results from 6.41 tonnes of NQ conglomerate drill core from 24 drill holes drilled in the North and Central parts of the property. The bulk sampling and the HQ drilling program are based on the recommendations outlined in the 43-101 compliant report "Preliminary Tonnage Estimate for the Diamondiferous Conglomerates of the Leadbetter Diamond Project" dated August 29th 2007 and prepared for Dianor Resources Inc. by Verley, D'Amours and Martel. Mr. Carl Verley, P.Geo will be the independent Qualified Person responsible for all reporting aspects of the bulk sampling and drilling programs.

During the summer, reconnaissance outcrop sampling was conducted by Dianor on behalf of its joint venture partners Metalex Ventures Limited (MTX: TSX Venture Exchange) and Wemindji Exploration Inc. (Wemex) over four (4) of the eight (8) joint venture properties plus the Company's 100% owned PEM property in the James Bay region of Quebec. A total of 120 outcrop samples, each weighing approximately 60 kilos, were collected from five (5) properties including Ekomiak I, VI and VIII which were not previously sampled in 2007. A total of seventy one (71) of the 120 samples, each weighing eight (8) kilos were sent to the SRC diamond laboratory in Saskatoon, Saskatchewan for caustic fusion to recover diamonds. At each sample site an additional 250gram of rock matrix material was taken for whole rock geochemical analysis and shipped to Actlabs in Rouyn-Noranda.

During 2007, ninety two (92) of the one hundred and ninety one (191) reconnaissance surface rock samples of 25 to 30 kilo each taken from six (6) of the nine (9) properties returned diamonds including 121 purple coloured diamonds in eight (8) samples from three (3) properties (Ekomiak V; VII and PEM). Seventy eight percent (78%) of the diamonds recovered and described from the properties were coloured diamonds. They ranged from brown (38%), purple (10%), grey (10%), yellow (10%), green (7%), amber (2%) and pink (1%). In addition, based on SRC descriptions of +0.3mm sized diamonds for the caustically fused samples, only 12% were described as fragments with the remaining 88% described as crystals.

Whole rock geochemical analyses conducted on eighty (80) of the 2007 samples indicated a difference in geochemistry between those samples containing high diamond contents and those with low or no diamonds. Physical differences in inclusion/clast content, matrix colour and type and other physical features appear to correlate with the geochemical differences. These features and the presence 88% of well formed and preserved diamond crystals in the high diamond samples are indicative of a primary source within the sampled PEM and Ekomiak V properties. Further studies, geochemical, mineralogical and petrographic will be undertaken to confirm presence of primary diamond sources on these properties.

In other news, the Company has reduced the exercise price of 6,820,571 common share purchased warrants issued on March 27, 2008 from an exercise price of $0.45 per share to $0.37 per share. The amendment of the exercise price of the warrants has been approved by the TSX Venture Exchange.

The Board of Directors has granted stock options to nine directors and officers in respect of an aggregate of 1,870,000 common shares. At the same time, Dianor granted stock options to employees and a consultant in respect of an aggregate of 130,000 common shares. The options were granted under Dianor's Stock Option Plan.The exercise price of the options is $0.10 per share. The closing price of Dianor's common shares on the TSX Venture Exchange on November 18, 2008, the last trading day prior to the date of grant, was $0.09. The options expire in ten years.

Dianor also issued 80,000 common shares to Eastmain Resources Inc. as final payment with respect to its Abitibi Extension option agreement dated October 2003 (press release October 29th 2003).

Dianor is an innovative exploration company focused on advancing diamond exploration properties in Canada. The Leadbetter Diamond Project is its most advanced project and is located 12 kilometres north east of Wawa in Northern Ontario. Substantial exploration work has been conducted on the property since 2005 and the Company is in the process of permitting up to a 50,000 tonne bulk sampling programme. In addition to diamonds, it contains gold, sapphires and rubies (press release January 18th 2007). New diamond discoveries including rare purple diamonds, by the Company in rocks of similar type, age (Archean) and geological settings (press release March 3rd, April 10th ,& May 13th 2008) in Quebec have added further diamond properties to 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.

Mr. John Ryder, P.Geo is the Qualified Person responsible for the technical contents of this press release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Dianor Resources Inc.
    Mr. John Ryder, P.Geo.
    819-825-7545 (FAX)
    Dianor Resources Inc.
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7545 (FAX)
    S.D.N.L. Financial Communication
    Mr. Sylvain Laberge
    Investor Relations