Diamonds North Resources Ltd.
TSX VENTURE : DDN

Diamonds North Resources Ltd.

January 23, 2012 09:15 ET

RETRANSMISSION: Diamonds North Identifies IOCG Targets at Hepburn Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 23, 2012) - Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces that it has delineated two large scale Iron Oxide Copper Gold (IOCG) targets on the Hepburn Property located in the Northwest Territories.

The south IOCG target is over 2.5 kilometres long and up to 200 metres wide. The target is defined by a strong and continuous east-west trending Induced Polarization (IP) chargeability anomaly that extends over this target is open to the west and southeast (See copper and silver maps on our website www.diamondsnorth.com).

The IP anomaly is associated with several other features commonly associated with known IOCG deposits, this includes:

  1. A regional magnetic anomaly
  2. A regional radiometric anomaly
  3. Extensive zones of brecciation
  4. Strong magnetite, potassic, hematite, chlorite and sericite alteration
  5. Zones of anomalous to high grade copper, silver, gold, bismuth and uranium mineralization
  6. Proterozoic intrusive rocks
  7. Large, deep-seated faults and graben structures

"IOCG orebodies range from 10 million to 4 billion tonnes and can have grades between 0.2 to 5% copper. They commonly produce important by-products such as gold, silver, uranium and bismuth. At this stage, Hepburn is demonstrating many of these qualities as it is a large scale target with key IOCG alteration, structure and mineralization characteristics. An initial drill program could significantly advance this project," says Mark Kolebaba, President and CEO of Diamonds North.

In 2011, 24 line kilometres of IP were surveyed and 61 samples were collected from the property. Table 1 shows a compilation of selected samples highlighting the south target. The geochemistry shows high copper (up to 19.8%), silver (up to 123 g/T) and uranium (up to 4340 ppm) assays associated with elevated gold (up to 0.275 g/T) and bismuth (up to 0.17%) assays.

Table 1: South Zone
Sample Copper % Silver (g/T ) Gold (g/T ) Uranium (ppm ) Bismuth %
1 19.8 72 0.072 0.169
2 7.6 32.5 0.216 0.124
3 5.8 31.1 0.15 0.0356
4 4.1 123 0.258 264 0.028
5* 2.49 13.3
6* 1.44 19.4 0.019
7 1.07 8.9
8 0.91 3.3 0.0252
9 0.653 3.2
10 0.616 10.5
11 0.526 3.4
12 0.467 5.6
13 0.376 3.4
14* 0.232 3.4 0.275 0.0173
15 0.126 7.2 2010
16 0.0379 0.1 4340
* All grab samples with the exception of samples 5, 6 & 14 are chip samples over 0.5, 0.4 & 0.55 metres respectively. Samples were collected from 2006 through 2011.

A second large target, 500 metres to the north, is outlined by a 2 kilometre long, 500 metre wide IOCG style alteration zone which includes magnetite, hematite, sericite and chlorite. This zone contains high copper (up to 40.2%) silver (up to 1129 g/T), uranium (up to 3099 ppm) and gold up to (0.635 g/T) values. The IP over this target forms a narrower east-west trending anomaly that extends for at least 600 metres and is open at either end due to lack of surveying. The geochemical values and alteration patterns show this to be a target worthy of further follow-up work.

Table 2: North Zone
Sample Copper % Silver (g/T ) Gold (g/T ) Uranium (ppm )
1 40.2 197 0.635
2 30.9 133 0.151
3 23.4 116 0.202
4 15.5 70 0.136
5 9.22 41 0.044
6 5.08 35.2
7 3.29 1129 0.052 215
8 2.97 156 0.06
9 2.57 18.6
10 2.07 46 608
11 1.65 729 3099
12 1.18 77.6 0.196
13 1.09 5.2
14 1.09 10.3
15 1.04 3.8
16 0.79 3
17 0.671 2.6
Grab samples were collected from 2006 through 2011.

Further interpretation and modeling of the IP data to better define drill targets is underway. Currently a 2500 metre program is recommended for Hepburn.

The Hepburn target lies within the Great Bear Magmatic Zone which is considered one of Canada's most prospective IOCG terrains. The NICO and Sue-Dianne deposits are local examples of IOCG deposits within the Great Bear Magmatic Zone. Other world examples include Olympic Dam, Ernest Henry, Candelaria and Manto Verde deposits (see our website www.diamondsnorth.com for estimated size and grades of these IOCG deposits).

Graham Gill (P. Geo) is Diamonds North's qualified persons as defined by National Instrument 43-101, reviewing this project.

All samples collected in 2011 were shipped in sealed containers and processed at the Saskatchewan Research Council (SRC) Geoanalytical Laboratories, which is an ISO/IEC 17025 accredited laboratory for mineral analysis testing. Samples were analyzed using SRC's Uranium Exploration ICP Package, which includes uranium by total digestion ICP-OES analyses and uranium by partial digestion ICP-OES analyses. All samples having more than 1,000 ppm uranium were assayed using a uranium assay dissolution procedure. SRC 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.

Diamonds North will be exhibiting (Booth #1034) at the Vancouver Resources Investment Conference January 22-23rd 2012 held at the Vancouver Convention Centre West. For more information and to pre-register go to www.cambridgehouse.com. Diamonds North will also be exhibiting (Booth #B20) at the AMEBC Mineral Exploration Round Up January 25-26th held at the Westin Bayshore Hotel. For more information go to www.amebc.ca.

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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