Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

February 03, 2011 10:15 ET

Diamonds North and MMG Defining Targets-Confirm Budget for Nickel Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2011) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) and Minerals and Metals Group ("MMG") announce the identification of 22 target areas for nickel mineralization and the continuation of the MMG funded nickel exploration program on the Amaruk property in Nunavut with an approved budget of $1.65 million for 2011.

The 2011 exploration program will commence with a geophysical survey utilizing the airborne electromagnetic AeroTEM system (EM). Areas with mafic-ultramafic intrusions and/or anomalous nickel and copper in till will be targeted with the AeroTEM survey. Targets identified by prospecting during the 2010 field program, and any new targets identified in 2011 programs will be followed-up and, if warranted, drill tested. A core drill is situated on the property for future drill testing.

"Amaruk is a new district scale nickel prospect and MMG's investment in the project allows for the continued advancement towards our objective of drilling at no cost to our shareholders," says Mark Kolebaba, President and CEO of Diamonds North.

In 2010, MMG funded a $2.25 million exploration program that led to the identification of an additional 26 mafic-ultramafic intrusions (for a total of 50) in the project area. These represent priority targets for nickel sulfide mineralization. In addition, MMG analyzed over 3800 geochemical till samples across the property resulting in the identification of several new areas that require follow-up exploration.

MMG, the project operator, is currently earning a 75% interest in nickel and other base metals on the Amaruk property, by spending C$6,000,000 and completing a pre-feasibility study on any base metal deposit that might be identified. These terms were defined in a letter agreement signed by the Company and MMG in March 2010 (See News Release 10-04, March 9, 2010).

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 holdings.

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.

Contact Information