Diamonds North Resources Ltd.

Diamonds North Resources Ltd.

January 18, 2011 10:14 ET

Diamonds North Identifies 10 Priority Gold Targets on the HI-2 Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces that priority gold targets have been identified on the HI-2 gold prospect on the 100% owned Halket Inlet project located in Nunavut.

Samples collected along a 55 kilometre long iron formation reveal at least 6 areas with multiple gold values over 0.5 g/T gold including values up to 3.24 g/T gold. These areas all occur at or near the intersection of regional structures and lineaments and will be a main focus of further work proposed for 2011. Additionally, 4 other areas with anomalous gold values have been identified and require follow-up prospecting. 

"The HI-2 prospect is part of what we believe to be a new emerging gold district. Gold mineralization occurs along a sedimentary unit that exceeds 55 kilometres in strike length and we are looking forward to focusing on those areas with high gold values in 2011," says Mark Kolebaba, President and CEO of Diamonds North. 

The gold bearing iron formation occurs in a tightly folded sedimentary rock unit that extends for more than 55 kilometres in strike length. The sedimentary unit has a highly magnetic signature that is 500-1000 metres wide based on airborne geophysical surveying. Gossanous zones contained within the unit vary from 1 to 20 metres in width. Increased widths and occurrences of the gossanous zones are attributed to tight folding, faulting and the existence of multiple sedimentary horizons.

Detailed structural analysis at HI-2 is currently underway. Plans for 2011 include additional prospecting, sampling and mapping along with ground geophysical surveying. Regional prospecting of additional gossanous areas located in the surrounding area is also planned.

The HI-2 prospect is located only 5 kilometres from the coast and 25 kilometres from the HI-1 prospect (see News Release NR10-19, November 4, 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. They are responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results. All assay results are provided by ALS Chemex.

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.

For an update on our projects please visit our booths at the 2011 Vancouver Resource Investment Conference & the 2011 Mineral Exploration Roundup.

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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