Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

June 16, 2008 08:00 ET

Diamonds North Intersects 9 Metre Zone Grading 2.49% Nickel at Tunerq Nickel Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2008) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces drill results with high nickel values received from the Company's Tunerq nickel prospect located on the 100% owned Amaruk project located in Nunavut. Four drill holes have intersected substantial nickel grades. Assay results increase with depth in step out holes.

Highlights

- Hole 1 intersected 1.20% Ni, 0.26% Cu and 0.03% Co over 12.2 metres within a 22.9 metre zone containing 0.83% Ni and 0.19% Cu.

- Hole 2 intersected 2.49% Ni, 0.56% Cu and 0.05% Co over 9.1 metres within a 34.8 metre zone containing 1.05% Ni and 0.26% Cu.

- Hole 4 intersected 1.86% Ni, 0.36% Cu and 0.04% Co over 5.8 metres within a 7.3 metre zone containing 1.50% Ni and 0.29% Cu.

- Preliminary mapping extends the gabbro - ultramafic complex over 400 to 500 metres.



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From To Interval
Hole # (m) (m) (m) Ni% Cu% Co%
-----------------------------------------------------------
08TUR001 0.9 23.8 22.9 0.83 0.19 0.02
-----------------------------------------------------------
including 0.9 13.1 12.2 1.20 0.26 0.03
-----------------------------------------------------------
08TUR002 1.8 36.6 34.8 1.05 0.26 0.02
-----------------------------------------------------------
including 1.8 6.1 4.3 1.46 0.4 0.03
-----------------------------------------------------------
including(i) 24.4 33.5 9.1 2.49 0.56 0.05
-----------------------------------------------------------
08TUR004 0.0 7.3 7.3 1.50 0.29 0.03
-----------------------------------------------------------
including 0.0 5.8 5.8 1.86 0.36 0.04
-----------------------------------------------------------
08TUR005 0.0 22.6 22.6 0.44 0.14 0.01
-----------------------------------------------------------
including 1.2 5.8 4.6 0.72 0.25 0.02
-----------------------------------------------------------
including 10.7 14.9 4.2 0.84 0.17 0.02
-----------------------------------------------------------
(i) Includes nickel values of 3.95%, 3.0%, 2.67%, 2.35% each
over 1.5m

- True thicknesses are unknown.

- Ni and Cu tenors were calculated where Sulfur% was greater
than 5. Ni tenor range from 8.39 wt% Ni to 16.35 wt%
(avg 11.83). Cu tenor range from 1.44 wt% Cu to 3.10 wt% Cu
(avg 2.29).

- Tenor is calculated by dividing the Ni ppm and Cu ppm by the
mass fraction of sulfur (S% by partial extraction analysis
divided by the presumed total sulfur possible in a massive
sulphide (36.5%)) and dividing by 10000.


This first series of drill holes into the Tunerq nickel prospect were located according to the only known outcrop exposure with little assistance from geophysics. The program was designed to gain geological information such as depth extent of sulphide mineralization below the outcrop exposure, to obtain fresh unaltered samples for analysis and to develop a better understanding of the orientation and extent of the mafic - ultramafic body that hosts the sulphide minerals. Mafic - ultramafic rocks and more felsic components of the intrusion appear to be undeformed and are interpreted to be much younger than the surrounding granodiorite country rock.

The extent of the host rock appears open; recent surface mapping has revealed that it extends at least 400 to 500 metres from the discovery outcrop. The nickel sulphide zones have been tested over about 70 metres in a north-south direction and 75 metres in an east-west direction. The mineralization is open along strike and down dip. In hole 08TUR002, samples over 1.52 metres exceed 2% Ni and are as high as 3.95%. Sulphides range from disseminated to net-textured and semi-massive. True thickness of nickel sulphide mineralized zones is not known.

"This is one of the best series of early stage drill holes that I have seen in nickel exploration," states Bernard Kahlert, Director of Diamonds North. "The fact that a relatively thin sequence of mafic rocks is so strongly mineralized infers that it has been injected from a nearby larger differentiated gabbroic body which will be the future target of exploration at Tunerq."

Additional geophysical surveying will be conducted. Electrical geophysical methods suitable for targeting nickel sulphides are being considered and a survey is expected to start shortly. Upon completion of the geophysical survey, additional drilling using a core drill is being planned for later this summer. Plans include testing mineralization down dip and along strike. Deeper holes may also be drilled to test for multiple zones of mineralization.

Initial mapping was conducted in May with extensive snow cover which hinders visibility of outcrop exposures. Additional mapping is planned to begin shortly now that the snow has melted.

Detailed geological descriptions of the reverse circulation drill cuttings collected from Tunerq are provided below.

08TUR001 was drilled vertically at the centre of the Tunerq discovery outcrop. This hole was intended to test the depth extent of the Ni-Cu mineralization observed at surface and obtain fresh unaltered samples for assay. The hole collared in pyrrhotite-chalcopyrite mineralized gabbro and ultramafic continuing to a depth of 24 metres. Mineralization varies from a few percent to 20-25% pyrrhotite with accessory chalcopyrite. The overall interval grades around 8-10% pyrrhotite and 1% chalcopyrite. Pyrrhotite occurs as fine grained disseminations within the phlogophitic gabbro and as more abundant net-textured interpyroxene/olivine zones over short distances. Chalcopyrite occurs within the gabbro, and plagioclase-rich segregations in the gabbro and late crosscutting granitic rock. The gabbro and ultramafic rocks are interlayered. The ultramafic rocks are more strongly mineralized. Granodiorite was encountered 24 metres and continued to EOH at 66 metres.

08TUR002 was drilled at a dip of -60 degrees to the east approximately 12 metres east of 08TUR001. It was intended to test the eastern extent of the Ni-Cu mineralization observed at surface. The hole collared in pyrrhotite-chalcopyrite mineralized gabbro and ultramafic which continued intermittently to a depth of 35 metres. Mineralization varies from a few percent to 50-70% pyrrhotite and 5-8% chalcopyrite. The best intersections occur between 27 and 34 metres and contain visual estimates up to 50% pyrrhotite and 3-5% chalcopyrite. Individual chips can contain as much as 75% pyrrhotite and chalcopyrite. Pyrrhotite occurs as fine grained disseminations within the phlogophitic gabbro and as more abundant net-textured interpyroxene/olivine zones over short distances. Chalcopyrite occurs within the gabbro as well as late crosscutting granitic rock. The gabbro and ultramafic are interlayered. The ultramafic rocks are more strongly mineralized. Granodiorite was encountered 59 metres and continued to EOH at 70 metres.

08TUR003 was drilled toward the south at a dip of -60 degrees approximately 17 metres from 08TUR001 with the intention of testing the southern extent of the Cu-Ni mineralization identified at surface and in RC hole 08TUR001. The hole collared in mixed granodiorite-granite followed by an intersection of gabbro and ultramafic rocks (7-28 metres). No significant mineralization was encountered. Granodiorite began at 93 feet and continued to EOH at 34 metres.

08TUR004 was drilled at a dip of -60 degrees to the west approximately 12 metres west of 08TUR001. It was intended to test the western extent of the Ni-Cu mineralization observed at surface and in hole 08TUR001. The hole collared in pyrrhotite-chalcopyrite mineralized gabbro and ultramafic rocks which continued to a depth of 5.8 metres averaging 25% pyrrhotite & 1% chalcopyrite. Weak disseminated pyrrhotite-chalcopyrite continues to 11.3 metres followed by granodiorite to EOH at 19.5 metres.

08TUR005 was drilled at a dip of -60 degrees to the north approximately 19 metres north of 08TUR001. It was intended to test the northern extent of the Ni-Cu mineralization observed at surface and in hole 08TUR001. The hole collared in pyrrhotite-chalcopyrite mineralized gabbro and ultramafic which continued to a depth of 18 metres averaging 8-10% pyrrhotite & 0.5-1% chalcopyrite. Weakly mineralized gabbro occurs between 18-30.8 metres. The best mineralization occurs between 10-15.5 metres consisting of 15-25% pyrrhotite and 2-3% chalcopyrite. Granodiorite was encountered at 30.8 metres and continued to EOH at 34.8 metres.

Two additional holes were drilled to test a magnetic high feature. Relative to drill hole 08TUR001 both holes 08TUR006 and 08TUR007 were drilled approximately 100 metres northeast and 50 metres north, respectively at -45 degrees dip to the west. A drill thickness of the ultramafic body at this location is 46 metres. Disseminated sulphides are present in the hole, however, no significant concentration were intersected in these two holes.

The samples were collected using a reverse circulation drill. Each 1.52 metre drill intercept was collected in 20 litre containers, homogenized and poured onto a table along a straight line. The sample was split and quartered. One quarter of the sample was submitted for analysis. A duplicate sample was submitted every 5 samples. Drill cuttings were logged in a secure on-site facility.

All samples were analyzed at ALS Chemex (ALS Laboratory Group-Mineral Division) in North Vancouver, BC. ALS Chemex is accredited by the QMI Quality Registrars to ISO 9001:2000, and by the Standards Council of Canada to ISO 17025. A standard aqua-regia digestion and ICP-AES package was used on all samples. Ore grade assays were analyzed by Atomic Absorption.

Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons reviewing this project. They are responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results.

Diamonds North Resources is rapidly evolving and committed to building long-term value for shareholder 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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