Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

May 05, 2011 10:05 ET

Diamonds North Acquires Gold Properties with Historic Gold Values up to 709.7 g/T

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces the acquisition of several gold properties in Southern Nunavut through permitting and claim staking. The projects cover historic high grade gold occurrences that the Company believes are under-explored. Over the next few weeks, the Company intends on providing a brief description of the more significant properties along with preliminary 2011 plans. The property descriptions will be initiated with the KL Property where assays are as high as 709.7 g/T gold.

The KL Gold Property covers at least six historic gold occurrences in iron formation and quartz veins that were identified as a result of geophysical targeting in the late 1980s. The most impressive showing is the VG showing, where a total of 69 rock samples of quartz vein adjacent to an iron formation horizon yielded 39 samples with more than 100 ppb of which 12 samples returned values between 1.39 to 23 g/T gold. An additional 7 samples returned values between 33.8 to 709.7 g/T (20.7 opt) gold. Historic drill testing has only intersected relatively thin gold bearing zones.

"There are some extremely high grade gold values on this under-explored property and we think a fresh systematic approach to exploration may provide a great opportunity for Diamonds North. We will look beyond geophysics and focus on the most prospective geological units," says Mark Kolebaba President and CEO of Diamonds North.

Review of historic data suggests that the KL property is under-explored and targeting was strongly biased by geophysical interpretation. Since a high proportion of gold deposits have little to no magnetic or electromagnetic expression another approach may be required to thoroughly evaluate the property. In 2011, Diamonds North plans to verify selected occurrences and focus on geological prospecting rather than targeting with geophysical data.

The historical work has not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality. Bruce Kienlen (P. Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons as defined by National Instrument 43-101, reviewing this project.

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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