Diamond Frank Exploration Inc.

Diamond Frank Exploration Inc.

March 31, 2009 10:34 ET

Diamond Frank Summarizes its 2008 Exploration Work and Reduces the Exercise Price of its Warrants

LAVAL, QUEBEC--(Marketwire - March 31, 2009) - Diamond Frank Exploration Inc. (TSX VENTURE:DOD) announces these 2008 exploration work results completed on the diamondiferous property K6 and on the option (50 %) Destorbelle property.

K6 Property

This property is located in the Mont-Otish area. In 2008, Diamond Frank completed a Till sampling survey downstream anomalies defined previously by Diagnos. The first results following the sieving confirmed the presence of purplish garnets and translucid olivines. All the samples sieved were sent to a laboratory and at the characterization of garnet and olivine grains as well for a complete study. The analysis completed revealed that more than 50 % of the garnet grains are the almandine type as well as some minor grossular and pyrope. It as also showed that the forsterite olivine is near the field of diamond inclusions with a high percentage of nickel (greater than 0.4 %). On the other hand, the Cr2O3 and K2O contents are low. However, the presence of corundum and picroilmenite, minerals commonly present in kimberlite pipes, was observed in the recovered grains from the till sampling survey.

Destorbelle Property

In the Destorbelle showing area, Diamond Frank completed several exploration activities and seven (7) drill holes, in approximately 3.5 km, north-west of the Fayolle Deposit. Four (4) of these holes were completed in the southern part in order to verify a high intensity ovoid magnetic abnormality. The holes drilled revealed the presence of a differentiated intrusion with a composition ranging from gabbo to pyroxenite, in a volcaniclastics environment slightly altered in chlorite, sericite and locally in carbonate. Some pyritised passages were intersected. The DES-08-03 holes revealed anomalous gold values ranging from 122 ppb Au to more than 908 ppb Au on 1 meter.

The other three holes were completed in the actual Destorbelle Showing area in order to confirm the presence of a previously identified gold-bearing mineralization. Drilling completed between 1946 and 1987 revealed grades such as: 8.2 g/t Au on 6.43 meters and 3.4 g/t Au on 2.59 meters. The recent ones confirmed the presence of fresh to altered komatiite, "Fayolle Deposit" type and some porphyry intrusions with veins and veinlets of quartz-ankerite-albite and pyrite. These drill holes were approximately positioned in the showing area because the location of the historical drill holes was approximate. In the DE-08-05 holes, the best gold values obtained range from 105 ppb Au to more than 610 ppb Au on 1 meter. However, despite the low gold values, on short-term the company is confident to define some interesting gold-bearing mineralization. In addition, the structural context shows a high similarity with the Fayolle Deposit (which contained 188,000 ounces of inferred gold resources) since it is located in the Porcupine-Destor deformation corridor.

In other matters, subject to the approval of the TSX Venture Exchange, Diamond Frank proposes to re-price its warrants. The 2,513,459 warrants issued pursuant the financing of December 2007, financing exercisable at a price of $ 0.15 until December 21, 2012, will now be exercisable at a price of $ 0.10 per warrant. Furthermore, 1,352,805 of the 1,385,645 warrants issued in the December 2008, financing exercisable at a price of $ .07 until December 31, 2009 and thereafter, at a price of $ 0.10 until December 31, 2013, will now be exercisable at a price of $ 0.06 until December 31, 2009, and thereafter, at a price of $ 0.10 until December 31, 2013.

The warrants expiring on December 2013 are subject to a forced exercise provision. If the closing price for the company's shares is $ 0,07 or greater for a period of 10 consecutive trading days, then the holders will have 30 days to exercise their warrants, otherwise the warrants will expire on the 31st day.

Mrs. Isabelle D'Amours, ing. (OIQ), Technical Advisor, a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.

The common shares of Diamond Frank Exploration are listed on the TSX Venture Exchange under the symbol "DOD".

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those in these "forward-looking statements".

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

Contact Information

  • Diamond Frank Exploration Inc.
    David Mc Donald
    President and CEO
    450-622-4337 (FAX)