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Diamonds North Intersects 16 G/T Gold over 0.25 M from Halkett Inlet Project in Nunavut

Diamonds North Resources Ltd. (TSX VENTURE:DDN) reports gold values of 7.92 g/T Au over a 4.25 metre chip sample including a 16 g/T Au assay over 0.25 metres on its 100% owned HI-1 Gold Prospect located on the Halkett Inlet project, Nunavut.

This contiguous chip sample confirms the 2009 results of 9.4 g/T Au over 3 metres and a grab sample of quartz feldspar porphyry (QFP) dyke containing 24.3 g/T Au (see News Release NR09-15, October 19th, 2009).

The combined 2009 and 2010 results have now increased the length of the anomalous gold bearing zone, where exposed, from 45 metres sampled in 2009, to at least 165 metres. This gold zone is located within a 450 metre long, 100 meter wide oxidized and QFP dyke-swarmed area that remains open along strike to the east and west. The gold zone is also located adjacent to a younger felsic intrusion and is associated with a prominent northwest trending structure.

"This years program has confirmed the high grade gold results from 2009 and has not only increased the strike length significantly it has identified two possible controlling structures that could lead to further increase in the size of the gold zone at HI-1," says Mark Kolebaba, President and CEO of Diamonds North.

HI-1 is hosted by deformed Archaen felsic and mafic rocks adjacent to a younger, undeformed, felsic intrusion. The gold bearing unit is intruded by a swarm of QFP dykes that have also returned values of up to 1.81 g/T Au from grab samples. The significance of the gold bearing QFP should not be overlooked as many Archean gold deposits have associated QFP bodies, which are directly related to gold mineralization.

Additional high gold values were returned from previously untested oxidized meta-sedimentary gossan zones which include 4.75 g/T Au and 3.2 g/T Au from chip samples over 1.0 metre and 2.2 metres respectively. Grab samples also returned values of up to 3.59, 3.52, 2.12 and 1.23 g/T Au. An additional 9 samples collected from the oxidized meta-sedimentary unit also returned values between 0.25 g/T Au to 0.91 g/T Au.

The 3.59 g/T Au and 2.12 g/T Au results described above were collected from the western most area of the gold zone which is intersected by a +2 kilometre long northwest trending structure likely related to the 150 kilometre long Halkett Inlet fault zone. This structure as well the contact zone is important as they could potentially be conduits for mineralizing fluids. These structures totalling at least 4 kilometres of strike now represent further potential for gold mineralization at HI-1 and are considered prime areas for follow-up in 2011. The prospect is located less than 8 kilometres from the coast.

Future work plans for this prospect include immediate detailed structural analysis prior to additional rock and soil sampling, prospecting and geophysical surveying to define drill targets in anticipation of a drill program to be initiated in 2011. Exploration will focus on the areas along the Northwest trending structure and the contact zone of the younger felsic intrusion which is parallel to the strike of the known gold mineralization. These target areas extend in the Northwest-Southeast and East-West directions for at least two kilometres each.

Graham Gill (P. Geo) is Diamonds North's qualified person as defined by National Instrument 43-101, reviewing this project. He is responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results. All assay results are provided by ALS Chemex.

Source:

Diamonds North Resources Ltd.

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