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Diamonds North Resources Discovers Priority Gold Targets at Halket Inlet Project in Nunavut

Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces that priority gold targets have been identified on the HI-2 gold prospect on the 100% owned Halket Inlet project located in Nunavut.

Samples collected along a 55 kilometre long iron formation reveal at least 6 areas with multiple gold values over 0.5 g/T gold including values up to 3.24 g/T gold. These areas all occur at or near the intersection of regional structures and lineaments and will be a main focus of further work proposed for 2011. Additionally, 4 other areas with anomalous gold values have been identified and require follow-up prospecting.

"The HI-2 prospect is part of what we believe to be a new emerging gold district. Gold mineralization occurs along a sedimentary unit that exceeds 55 kilometres in strike length and we are looking forward to focusing on those areas with high gold values in 2011," says Mark Kolebaba, President and CEO of Diamonds North.

The gold bearing iron formation occurs in a tightly folded sedimentary rock unit that extends for more than 55 kilometres in strike length. The sedimentary unit has a highly magnetic signature that is 500-1000 metres wide based on airborne geophysical surveying. Gossanous zones contained within the unit vary from 1 to 20 metres in width. Increased widths and occurrences of the gossanous zones are attributed to tight folding, faulting and the existence of multiple sedimentary horizons.

Detailed structural analysis at HI-2 is currently underway. Plans for 2011 include additional prospecting, sampling and mapping along with ground geophysical surveying. Regional prospecting of additional gossanous areas located in the surrounding area is also planned.

The HI-2 prospect is located only 5 kilometres from the coast and 25 kilometres from the HI-1 prospect.

Bruce Kienlen (P. Geol) and Graham Gill (P. Geo) are Diamonds North's qualified persons as defined by National Instrument 43-101, reviewing this project. They are 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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