Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

June 25, 2008 16:30 ET

Dianor Inc.: Orange, Purple and Other Coloured Diamonds Predominate in Drill Cores From Mori Joint Venture Property in Ontario

VAL-D'OR, CANADA--(Marketwire - June 25, 2008) - This news release is not for distribution to United States newswire services or for dissemination in the United States.

Dianor Resources Inc. (TSX VENTURE:DOR) in conjunction with its joint venture partners Metalex Ventures Limited (TSX VENTURE:MTX) and Mori Diamonds Inc. is pleased to inform shareholders that we have received complete results for 13 drill holes drilled on the Mori joint venture properties located 3 kilometres north east and north west of the Leadbetter Diamond Property in the Wawa area of Ontario. (Refer to press release of January 14, 2008 for initial drill results). Greater than fifty percent (52.4%) of the 5,216 diamonds recovered were coloured diamonds. The coloured diamonds range from brown (26.8%), grey (14.0%), yellow (5.5%), green (5.1%), orange (0.8%), purple (0.1%), amber (0.1%) and black (0.1%) . One pink diamond was also recovered. The ten largest diamonds recovered were commercial sized (+0.85mm) coloured stones (8 brown, 1 yellow and 1 grey) that range in weight from 1.0583 to 2.6327 milligrams. Natural fancy coloured diamonds are very rare and expensive with orange and purple amongst the rarest and most desirable colours. The main host rocks are conglomerates of Archean age, 2.697 billion years old (press release of April 4, 2007), unique and amongst the oldest diamond bearing occurrences in the world. The NQ drill cores were processed by autogenous (attrition) milling at the CF Minerals Research Limited laboratory in Kelowna, British Columbia to recover indicator minerals followed by caustic fusion to recover diamonds.

The coloured diamonds recovered ranged in size from 0.075 to 1.32mm and were present on all screen sieve sizes from +75 to +850 microns. The largest diamonds for each colour are outlined in the Table below:



Table I:
Largest Individual Coloured Diamonds
measured XYZ axes (microns(i))


Sieve
Colour Size (mm) x y z
-----------------------------------------------
-----------------------------------------------
Brown 0.850 1122 1212 803
-----------------------------------------------
Grey 0.850 1013 886 815
-----------------------------------------------
Yellow 0.850 1323 1189 371
-----------------------------------------------
Green 0.600 840 1114 537
-----------------------------------------------
Orange 0.425 666 567 420
-----------------------------------------------
Purple 0.150 132 270 227
-----------------------------------------------
Amber 0.300 526 526 249
-----------------------------------------------
Black 0.425 510 428 463
-----------------------------------------------
Pink 0.300 425 441 407
-----------------------------------------------
(i) 1000 microns = 1 millimetre;


Furthermore, the colour characteristics of the diamonds recovered from the drill core on the Mori East block consist of 47.6% white stones and 52.4% coloured diamonds. The percentage of white to coloured diamonds was consistent in each of the drill holes with little variation between the holes. Minor variations occurred between the percentages of each colour type in different drill holes but overall the following order of abundance was found brown greater than grey greater than yellow greater than green greater than other colours (orange, purple, amber, black, pink). (Photos to be posted on Dianor website at www.dianor.com by end of day).

A summary of Diamond Recoveries from Drill Core MORI EAST BLOCK is available at the following address:

http://media3.marketwire.com/docs/diamond.pdf

The results, in general, demonstrate the persistence of the diamondiferous conglomerate in the area and more specifically indicate the highly diamondiferous nature of the conglomerate on the Mori East block of claims and suggests proximity to source for the 5,079 diamonds recovered from 6,209.47 kilograms of drill core generated by the drilling. The three (3) kilometre long diamond bearing conglomerate band on the Mori East block is situated on the east side of the Mildred Lake Fault and is the faulted eastern continuation of the main diamond bearing Leadbetter Conglomerate located approximately 3.5 kilometres to the south. Exposures of the conglomerate attain thicknesses on surface of up to 180 metres and dips steeply to the north- northwest. Drilling results indicate that the true thickness of the diamond bearing conglomerate ranges from 87.6 to 121 metres.

Diamond indicator minerals were recovered through the autogenous (attrition) milling of the drill cores and outcrop samples of conglomerate at C.F. Minerals Research in Kelowna. The diamond indicator minerals are comparable to those recovered from the Leadbetter Conglomerate 3.5 kms to the south. They include group I eclogitic garnets, chromites, chrome diopsides and olivines with compositions similar to those minerals found associated with diamond bearing kimberlites. The abundance of olivines and diopsides suggests a proximal source for these minerals.

Results for further 3 drill holes drilled in the Mori East block by Mori Diamonds Inc. have not been received as of the date of this press release.

Processing of core from the three holes drilled on the Mori West Block recovered 137 diamonds from 975.41 kilograms of core, suggesting that conglomerate of the Mori West block is more distal to diamond source. The indicator mineral suite from this area also confirms the notion that the conglomerates were deposited farther from the diamond source rocks.

A summary of Diamond Recoveries from Drill Core MORI WEST BLOCK is available at the following address:

http://media3.marketwire.com/docs/diamond2.pdf

Management is very pleased and pleasantly surprised with the abundance of coloured stones, variety and size recovered from NQ drill cores. The drilling results to date are promising with diamond counts continuing to average a promising one diamond per kilogram in a continuous diamondiferous conglomerate. The presence of rare coloured diamonds is believed to be the first such occurrence in Ontario and in conjunction with our recent discovery of rare coloured diamonds in a similar geological setting in Quebec marks a new geological target for coloured diamonds.

Mr. Carl Verley, P.Geo is the Qualified Person responsible for the technical contents of this press release.

Amendment to Financing Terms

Dianor also announces that, due to market conditions, Dianor and Northern Securities Inc. have decided to amend the terms of the previously-announced financing (see press release dated June 11, 2008) consisting of a best efforts private placement of up to $7.8 million in units at a price of $0.30 per unit, and of up to $5.2 million in "flow-through" units at a price of $0.35 per "flow-through" unit, for aggregate gross proceeds to Dianor of $13 million. The terms of the financing have been amended such that the issue price of the units is now $0.25 per unit, and the issue price of the "flow-through" units is now $0.30 per unit.

Each unit will consist of one common share and one common share purchase warrant. Each warrant comprised in the units will entitle the holder to purchase one additional common share of Dianor at a price of $0.30 for twenty-four months from the closing date.

Each "flow-through" unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant comprised in the "flow-through" units will entitle the holder to purchase one additional common share of Dianor at a price of $0.32 for twenty-four months from the closing date.

Furthermore, the consideration payable to Northern has been amended such that Dianor has now agreed to pay Northern a cash commission of eight percent of the total proceeds from the private placement, payable upon closing, and issue compensation options equal in number to ten percent of the aggregate number of units and "flow-through" units sold, which will entitle Northern to purchase, at an exercise price equal to $0.25, one common share and one common share purchase warrant. The warrants comprised in the compensation options may be exercised at any time and from time to time for a period of twenty-four months following the closing of the proposed private placement at an exercise price of $0.30.

Dianor is an innovative exploration company focused on advancing diamond exploration properties in Canada. The Leadbetter Diamond Project is its most advanced project and is located 12 kilometres north east of Wawa in Northern Ontario. Substantial exploration work has been conducted on the property and the Company is about to undertake a 6,000 metre drilling programme and is permitting a 34,000 tonne bulk sampling programme in 2008. In addition to diamonds, it contains gold, sapphires and rubies (press release January 18th 2007). New diamond discoveries by the Company in rocks of similar type, age (Archean) and geological settings (press release March 3rd 2008) in Quebec have added further diamond properties to our portfolio of low cost, accessible exploration targets. These diamond discoveries (Ontario and Quebec) are both unique and amongst the oldest diamond bearing occurrences in the world.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Dianor Resources Inc
    Mr. John Ryder, P.Geo.
    President
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    or
    Dianor Resources Inc
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    or
    S.D.N.L. Financial Communication
    Mr. Sylvain Laberge
    Investor Relations
    514-380-5610
    slaberge@sdnlfinancial.com