Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

March 21, 2007 16:59 ET

Processing of Four "60 Tonne" Bedrock Samples on Schedule and Dianor Options Further Properties in the Wawa Region

VAL-D'OR, CANADA--(CCNMatthews - March 21, 2007) - 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) is pleased to update its shareholders on the progress of the four "60 tonne" conglomerate samples from the Leadbetter Diamond Project that are currently being processed at the Kennecott Canada DMS facility in Thunder Bay (press release January 18th 2007). Primary crushing of the four samples totaling 240 tonnes, to minus two inch sized pieces, was completed last Friday (March 16th). To date ninety (90) tonnes from two samples (MBP 184 and MBP 101) have been fully processed through the DMS circuit and heavy mineral concentrates produced. DMS processing of the four samples is expected to be completed by the end of April. Diamond picking of the concentrates has commenced and is expected to be completed by mid-May. Full and final diamond results are expected shortly thereafter.

The four "60 tonne" samples were collected from the Northern and Central Sectors of the Leadbetter Conglomerate and are replicate samples from selected sites (see table below) where "6 tonne" samples returned commercial sized diamonds as previously reported (Press releases April 28, July 31, August 30, November 29, 2006 and January 16, 2007).



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Dry Wt Total Carats Largest
Pit No. Sector Kg Diamonds Total Diamond
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MBP 101 North 4819 56 1.785 0.667ct
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MBP 136 North 4012 121 3.270 0.306ct
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MBP 184 Central 6001 27 0.980 0.576ct
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MBP 301 North 4903 105 2.009 0.135ct
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MBP(i)401 North 6360 147 3.324 0.347ct
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(i) Resample of MBP 301


All aspects of the processing and diamond recovery at the Kennecott Canada DMS facility in Thunder Bay are overseen by personnel from Hatch, of Montreal who were retained by Dianor to independently verify the operations. Hatch personnel have been involved with the design and operation of the three producing Canadian diamond mines since 1994.

A preliminary geological model and tonnage estimate of the Leadbetter conglomerate, based on the Phase II drilling is expected by mid-April. This geological and resource model will provide the basis for defining further large scale sampling programs in order to recover sufficient diamonds for pricing and to estimate resources and reserves for the Leadbetter Diamond Project (press release February 20th 2007).

The Company has signed an option agreement with a private company to acquire a 100% interest in thirty four (34) contiguous mining claims totaling 5,264 hectares located 30 kilometres north-east of the Leadbetter Diamond Bearing Conglomerate. Mapping by the Ontario Geological Survey (OGS) indicates the presence of an 8 to 10 kilometre long band of intermittent outcropping conglomerates on the claims having characteristics similar to the Leadbetter conglomerate. To earn its 100% interest, Dianor must make cash payment of fifty thousand ($50,000) dollars as reimbursement of staking costs and issue 200,000 common shares of the corporation upon signing. The Company must incur exploration expenditures of $300,000 over a three year period and keep the claims in good standing. A discovery bonus of 250,000 common shares of the corporation is payable to the private company upon the recovery of 10+ commercial sized diamonds from bedrock or overburden. The private company retains a five (5%) percent Gross Overriding Royalty (GOR) for diamonds and a one and one half percent (1.5%) Gross Overriding Royalty (GOR) for all other minerals and metals.

The Company has also renegotiated an option agreement originally signed in November 2005 with a private company for fifty (50) contiguous claims totaling 12,434 hectares whereby its twenty percent (20%) Gross Overriding Royalty (GOR) will be reduced down to a five percent (5%) Gross Overriding Royalty (GOR) for diamonds and a one and one half percent (1.5%) Gross Overriding Royalty (GOR) for all other minerals and metals. To reduce the royalty Dianor will pay one hundred and fifty thousand ($150,000) dollars within fifteen days of signing the amended agreement and issue three hundred thousand (300,000) common shares of Dianor subject to regulatory approval. The Claims will be subject to a discovery bonus of 250,000 common shares of the corporation upon the recovery of 10+ commercial sized diamonds from bedrock or overburden.

With the recent property acquisitions in the Wawa region (press release March 1st 2007) Dianor now controls a large contiguous block of 94 claims totaling 23,680 hectares which contains approximately thirty five (35) kilometers of intermittent outcropping conglomerates. Examination of the conglomerates by Dianor consultants and mapping by the Ontario Geological Survey (OGS) indicates that they have similarities with the Leadbetter diamond bearing conglomerates in Chabanel Township located some 30 kilometers to the south. In addition to the presence of conglomerates on the claims airborne geophysical surveys delineated in excess of 100 circular magnetic features having magnetic similarities to kimberlites. Exploration work in 2006 consisted of the collection and of stream sediment and till samples. A number of kimberlite Indicator Minerals (KIM's) was recovered. An extensive exploration program is planned for 2007.

Carl G. Verley, 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.

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 suuch 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)
    or
    Renmark Financial Communications
    Mr. Jason Roy
    514-939-3989
    514-939-3717 (FAX)
    jroy@renmarkfinancial.com
    www.dianor.com