Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

June 07, 2005 10:41 ET

Diamond Sizes Prompt Diamonds North to Increase Washburn Ownership to 100%

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 7, 2005) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces it has negotiated an increase in its ownership in the Washburn diamond property from 52% to 100%. Ascot Resources Ltd. has exchanged its 48% interest in the property for a 2% gross overriding royalty. The Washburn property is located on Victoria Island in Nunavut, along the southeast boundary of the Blue Ice property.

This acquisition is significant for Diamonds North as it provides the company with full control of the four known kimberlite trends on Victoria Island. Evaluation of historic diamond data for the Washburn property indicates that some of the known kimberlite bodies remain highly prospective and could potentially provide tonnage to the overall Victoria Island diamond project. In addition, several geophysical anomalies remain untested on the property.

The Washburn project had been inactive for several years under the Diamonds North and Ascot partnership. Diamonds North has strategically focused exploration efforts on properties that it owns 100% and this transaction provides Diamonds North with full control of the project to aggressively explore and advance.

To date, a total of seven kimberlites have been discovered on the Washburn property including the Snowy Owl kimberlite pipe, one of the largest known kimberlite bodies on Victoria Island. The historic diamond data for the property shows that the Snowy Owl and Longspur kimberlites have both yielded +1.0 mm diamonds from relatively small drill core samples.

The recovery of +1.0 mm diamonds from small samples from the Snowy Owl and Longspur kimberlites is a strong indication to the company that these kimberlites have potential to carry large diamonds and enriched diamond content. The King Eider kimberlite, which is located on the adjacent Blue Ice property, supports this potential. A +1.0 mm diamond was originally recovered from a small sample from King Eider. This prompted subsequent collection of a larger sample that yielded several large diamonds including a 0.74 carat stone (announced April 21, 2005, NR 05-13). A total of 1.09 carats of diamonds on and above the 0.85mm sieve were recovered from the 678 kilogram King Eider sample (normalizes to 1.6 carats per tonne). Based on the King Eider diamond results, collection of larger samples from the Snowy Owl and Longspur kimberlites are warranted.

Previously, only diamond counts for the Snowy Owl kimberlite were released, and detailed diamond size data had not been reported according to the current CIM standards (presented below). The historic diamond data demonstrates high diamond counts and a robust diamond size distribution indicating the potential for larger diamonds. Snowy Owl kimberlite was processed for diamonds by total dissolution methods at the De Beers laboratory in South Africa and at the SGS Lakefield Laboratory in Ontario. The results from both laboratories are reported separately due to analysis using different sieve sizes.



Snowy Owl Diamond Results from the De Beers' Laboratory
-----------------------------------------------------------------------
Weight (kg) +1 +0.5 +0.3 +0.212 +0.15 +0.104 +0.074 Total
-----------------------------------------------------------------------
154 0 0 1 5 11 27 31 75
-----------------------------------------------------------------------
176 1 2 1 4 7 46 71 132
-----------------------------------------------------------------------
88 0 0 6 34 86 159 178 463
-----------------------------------------------------------------------
-----------------------------------------------------------------------
418 1 2 8 43 104 232 280 670
-----------------------------------------------------------------------


Snowy Owl Diamond Results from SGS Lakefield
-----------------------------------------------------------------------
Weight (kg) +0.85 +0.6 +0.425 +0.3 +0.212 +0.15 +0.1 Total
-----------------------------------------------------------------------
65.8 1 1 0 0 5 18 30 55
-----------------------------------------------------------------------
84.3 0 1 2 1 3 13 28 48
-----------------------------------------------------------------------
36.7 0 0 2 3 1 12 9 27
-----------------------------------------------------------------------
-----------------------------------------------------------------------
186.8 1 2 4 4 9 43 67 130
-----------------------------------------------------------------------


The largest diamond recovered from the Lakefield laboratory measures 1.2mm x 1.08mm x 0.86 mm with a weight of 0.011 carats and the largest stone recovered from the De Beers laboratory is twice the weight, weighing 0.021 carats (no dimensional measurements available).

Further review of the Washburn property data has also identified the Longspur kimberlite dyke as a target for further exploration. Diamond data for Longspur previously released by Major General Resources and Ascot in November 1998 is shown below. The recovery of a +1mm diamond from a relatively small sample highlights Longspur as a significant kimberlite body with potential for large diamonds.



Longspur Diamond Results from De Beers' Laboratory
-----------------------------------------------------------------------
Weight (kg) +1 +0.5 +0.3 +0.212 +0.15 +0.104 +0.074 Total
-----------------------------------------------------------------------
90 1 1 0 3 8 13 12 38
-----------------------------------------------------------------------


Immediately west of Washburn, Diamonds North holds a 100% interest in the 44,300 acre Red Ice property. Red Ice was initially staked based on the presence of kimberlite indicator minerals. In 2004, the property was surveyed with helicopter-borne magnetics which revealed a number of high priority anomalies including a northwest trending magnetic anomaly extending 6 kilometres with widths measuring up to 50 metres. Upon completion of a data review, a comprehensive exploration plan for the Washburn and Red Ice properties will be formulated.

Graham Gill (P. Geo.) is the qualified person reviewing the Victoria Island exploration data.

Diamonds North is a dynamic exploration team focused on strategically advancing diamond opportunities and is determined to discover Canada's next diamond mine.

ON BEHALF OF THE BOARD OF DIRECTORS

Mark Kolebaba, President & CEO

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

Contact Information