Dianor Resources Inc.

Dianor Resources Inc.

March 03, 2008 12:26 ET

Dianor Resources Inc.: New Quebec Diamond Discovery Contains Rare Purple Diamonds


Dianor Resources Inc. (TSX VENTURE:DOR) in conjunction with its joint venture partners Metalex Ventures Limited (TSX VENTURE:MTX) and Wemindji Exploration Inc. are pleased to announce a new diamond discovery in Quebec. Diamonds have been recovered from surface rock samples on the Joint Venture's Ekomiak V property and on the adjacent Dianor's 100% owned PEM property in the James Bay region of Quebec. Eight hundred and fifty six (856) diamonds including sixteen (16) rare purple diamonds were recovered from twenty six (26) surface rock samples of conglomerates aged between 2.716 and 2.733 billion years. Natural fancy coloured diamonds are very rare and expensive. Purple is one of the rarest and most desirable colours. This makes the Quebec diamond discovery both unique and amongst the oldest diamond bearing occurrence in the world.

Results from thirty one (31) of the one hundred and forty two (142) outcrop samples from the PEM and Ekomiak V properties have been received and twenty six (26) of the conglomerate samples contained diamonds as outlined in the Table below. Four (4) of the samples contained a total of sixteen (16) purple micro diamonds with the largest sitting on a 212 micron screen with dimensions of 335 x 379 x 225 microns. Three (3) of the purple diamond samples were collected on the Ekomiak V property whilst the fourth was collected on the PEM property. All the purple diamond samples are associated with samples having high diamond counts (39 to 224 diamonds per sample).

Summary of Diamonds recovered by sieve size

Weight Bottom Sieve aperture in microns (i) Total
Location Kgs +75 +106 +150 +212 +300 +425 +600 +850 +1180 +1700 Diamonds
PEM 263.23 86 64 36 12 5 4 0 0 0 0 207
V 480.60 135 298 115 75 20 4 1 1 0 0 649
TOTAL 743.83 221 362 151 87 25 8 1 1 0 0 856
(i) 1000 microns = 1 millimetre

(PEM = 8 samples; Ekomiak V = 18 samples)

The largest diamond was a colorless fragment measuring 1.06mm x 0.98mm x
0.56 mm.

During 2006, Dianor identified a number of areas of Quebec having similar geology as its advanced exploration diamond property, the Leadbetter Diamond project, near Wawa, Ontario. The PEM property was the location of the first diamond discovery in the James Bay region in 2001 when Dianor recovered diamonds in lamprophyre dykes and intrusive breccias in a geological situation similar to Wawa. Eight (8) different geographic areas of Quebec were map staked during late 2006 and early 2007 with the last map staking completed in February 2008. Seven hundred and seventy two (772) claims totaling 39,542 hectares were staked on behalf of the Joint Venture partners. During the summer of 2007, a reconnaissance surface rock sampling programme was undertaken on five (5) of the eight (8) JV Ekomiak properties, accessible by road, plus the Company's 100% owned PEM property (186 claims, 8,958 hectares). A total of two hundred and twenty six (226) surface bedrock samples of conglomerate, averaging 30 kilos each, were collected from one hundred and sixteen (116) sample sites on the five (5) properties and the PEM. At each site two samples were taken; one sample for attrition milling to recover indicator minerals plus diamonds and the second sample for caustic fusion to recover only diamonds. Attrition milling samples were sent to the CF Minerals laboratory in Kelowna, British Columbia while the samples for caustic fusion were sent to the Saskatchewan Research Council (SRC) laboratory in Saskatoon, Saskatchewan. Results for the remainder of the samples from the five (5) JV properties and the PEM are awaited and will be released when received from the laboratories.

Attrition milling of twenty nine (29) rock samples resulted in the identification (picking) of eleven thousand two hundred and thirty eight (11,238) indicator minerals and of these, seven hundred and fifty five (755) mineral grains were sent for microprobe analyses. The analyses showed that numerous kimberlite and diamond indicator minerals (DIM's) were present including Olivine, Pyrope (G9) and Eclogitic (G1) garnets, Chromites, Clinopyroxenes and Picroilmenite. Results show that 78% of Olivines and 27% of chromites plot in the diamond stability field with the picroilmenites plotting in the compositional range normally associated with North American kimberlite ilmenites. Microprobe analyses and interpretation by CF Minerals also indicate that certain minerals grew in a diamond environment with large diamonds. The indicator mineral assemblages suggest a diamondiferous primary source and that these source rocks were proximal.

Geological mapping and prospecting indicates that the diamond bearing Ekomiak Conglomerate extends for 15 kilometres along strike and is up to 1 kilometre in width on the PEM and the Ekomiak V properties with individual outcrops measuring 500 metres by 400 metres in size. The discovery outcrop is located in the Company's exploration camp in close proximity to diamond bearing lamprophyre dykes, which are younger than the conglomerates. The source of indicator minerals in the tills and the source of the diamonds in the diamond bearing lamprophyres dykes may be finally explained in that the secondary diamond bearing conglomerates may be the source of these diamonds and minerals in the James Bay region of Quebec. Compared to the Northwest Territories, exploration and evaluation of this new diamond exploration model is cost-effective exploration and five (5) of the eight (8) properties are road accessible - "Tim Horton Exploration", the strategy of Dianor since 2002.

Management are very pleased with these initial results as they confirm Dianor's belief that the Leadbetter Diamond Bearing Conglomerate model is a valid new, low cost exploration model for diamond exploration in Canada and other parts of the world. In particular, since the Otish Mountains diamond bearing Renard kimberlites of the Stornoway Diamond Corporation (SWY: TSX-Venture Exchange) are at the pre-feasibility stage of development, this new diamond discovery by Dianor and its JV partner's opens up a large area of Quebec for new diamond discoveries.

Overall, the data have strong similarities to the diamondiferous Leadbetter Conglomerate near Wawa which is scheduled to undergo a 34,000 tonne bulk sample in 2008. Currently, the final documents for submission to the Ministry of Northern Development and Mines (MNDM) for the Leadbetter bulk sampling program is near completion and is expected that all documentation will be submitted by the end of the month.

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

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. It is a unique diamond deposit that in addition to diamonds it contains gold, sapphires and rubies (press release January 18th 2007).

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.

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