Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.
Uranium North Resources Corp.
TSX VENTURE : UNR

Uranium North Resources Corp.

October 18, 2012 10:05 ET

Diamonds North and Uranium North Report High Gold and Silver Values at Empire Creek Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2012) - Uranium North Resource Corp. (TSX VENTURE:UNR) and Diamonds North Resources Ltd. (TSX VENTURE:DDN) ("the "Companies") announce that their U.S. Subsidiary Minerals North LLC has completed an initial exploration program on the Empire Creek gold project in Ferry County Washington State. Numerous high grade gold and silver values from grab samples including 21.1 g/t gold and 474 g/t silver have been obtained in association with north-south and east-west structures identified by magnetic surveying.

Prior to the 2012 Empire Creek field program comprehensive data compilation for the property was completed. Historic results from surface samples and drill core highlight high gold and silver values, however the results appeared to be random with no apparent mineralizing control.

Detailed property wide sampling, magnetic surveying and prospecting was initiated to determine controls on gold and silver mineralization. Interpretation of the magnetic data has identified two key associations on the property:

  1. Prominent north-south structures denoted by magnetic lows indicating possible silica alteration/magnetite destruction

  2. A series of parallel east-west structures cross cutting the property

At least 95% of the samples yielding 1 g/t gold or more, fall on or are within, 50 metres of an east-west or north-south structure. The majority of samples greater than 5 g/t gold lie within two north-south trending corridors associated with magnetic lows that extend for more than 700 metres.

"Our systematic approach has rapidly advanced the Empire Creek project. We have highlighted high gold/silver concentrations along major structures. This property is only 20 kilometres from the Kettle River Mill facility and 7 kilometres from the Kinross K2 deposit," says Mark Kolebaba, President and CEO of the Companies.

Gold and silver values from grab samples on or near the structures are shown in the table below.

Sample Gold g/t Silver g/t Sample Gold g/t Silver g/t
1 21.1 112.0 8 2.0 8.9
2 19.2 42.3 9 1.9 19.8
3 11.7 241.0 10 1.9 6.6
4 10.8 474.0 11 1.5 23.1
5 3.6 12.2 12 1.2 4.4
6 2.7 8.0 13 1.0 25.7
7 2.3 15.8 14 1.0 12.7

As there appears to be a strong association between high gold/silver values and high sulfide content, a VLF-EM survey has been conducted over part of the property to identify conductive zones along structures for possible future drill testing. Interpretation of the VLF data is underway.

Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining a low cost. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.

Graham Gill P.Geo, and Bruce Kienlen P.Geol are the Qualified Persons as defined by National Instrument 43-101 reviewing the data collected and overseeing the project. All the Minerals North samples were analyzed by ALS Canada Ltd using ICP-MS. The historical work is from private historic reports and 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.

On behalf of the Board of Directors,

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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