Diamonds North provides Thelon Uranium Project Update
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VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 20, 2006) - Diamonds
North Resources Ltd. (TSX VENTURE:DDN) provides an update on the Thelon
Uranium project in the Northwest Territories. The Company has been
informed that Pathfinder Resources Ltd (TSX VENTURE:PHR) and Bayswater
Venture Corp (TSX VENTURE:BVE) have entered into a letter agreement to
merge (announced April 19th, 2006 by Pathfinder). Pathfinder has an
Agreement with Diamonds North to explore for uranium on the Company's
Thelon project which currently covers approximately 1.2 million acres on
the Thelon Basin in the Northwest Territories. Diamonds North believes
that the Thelon Uranium project is a significant asset for Pathfinder as
it represents over 50% of their land interests and will be a key project
for the proposed merged company (MergeCo).
Currently under the terms of the Agreement (see News Release NR05-11)
Pathfinder can earn an 80% interest in the uranium rights of Diamonds
North's Northwest Territories Thelon permits by making a cash payment of
$100,000 (completed), issuing 2 million shares of Pathfinder in 3 stages
(1 million shares have been issued), and completing exploration
expenditures of $4 million over 3 years. Diamonds North will retain a 20%
interest which is carried to completion of a bankable feasibility study
on any uranium deposits found on the property plus 100% of all other
mineral rights including diamond. The terms of the agreement will remain
the same for MergeCo and MergeCo will become the operator for the uranium
exploration programs.
2006 EXPLORATION PLANS FOR THELON URANIUM PROJECT
Diamonds North has been informed by Pathfinder that starting in June a
more than 7000 line-kilometre deep penetrating, electromagnetic (EM)
survey will be conducted on the Thelon Uranium Project. Diamonds North
estimates that the preliminary budget for the program is approximately
C$1.5 million and will be funded by Pathfinder. The objective of the
survey is to identify conductive graphitic sediments that maybe spatially
associated with geologic structures and uranium mineralization, as
observed in the Athabasca Basin.
The Thelon Basin is geologically similar to the prolific Athabasca Basin
located about 300 kilometres to the south. The Thelon Basin has a number
of unconformity-related uranium prospects that have not received the
intensity of exploration accorded to the Athabasca Basin. Major uranium
mining companies actively exploring in the Thelon Basin include Cameco
Corporation and Cogema Resources Inc.
URANIUM NORTH RESOURCES CORP.
On March 16, 2006, Diamonds North announced a proposal to form a separate
company to explore for uranium. The new company, Uranium North Resources
Corp., will acquire from Diamonds North one of Canada's largest
prospective uranium land packages (more than 3.7 million acres, including
the Thelon Uranium project). This transaction is in line with Diamonds
North's business strategy of maximizing value, while maintaining its
focus on diamond exploration.
Under the terms of the proposed arrangement, Diamonds North's shares will
be restructured into New Common Shares and Reorganization Shares on the
basis that for each six common shares held on the completion date, six
New Common Shares and one Reorganization Share will be issued to the
shareholder. By a tax free share exchange, the holders of Diamonds
North's Reorganization Shares will receive shares in Uranium North on the
basis that one share of Uranium North will be issued to the shareholder
for each Reorganization Share exchanged. Shareholders will vote on this
proposal at the Company's Annual General Meeting to be held May 10th,
2006.
Bruce Kienlen (P.Geol) and Graham Gill (P.Geo) are Diamonds North's
qualified persons reviewing the data for these projects.
Diamonds North is a dynamic successful exploration team focused on
strategically advancing diamond opportunities and is determined to
discover Canada's next diamond mine.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Diamonds North Resources Ltd.
Nancy Curry
Corporate Communications
(604) 689-2010
(604) 484-7143 (FAX)
info@diamondsnorth.com
www.diamondsnorth.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
