To: VAUGHN who wrote (349 ) 12/20/2002 9:34:20 AM From: Famularo Read Replies (1) | Respond to of 16206 Diamonds North's Blue Ice sparkles Diamonds North Resources Ltd DDN Shares issued 10,001,033 Dec 19 close $0.71 Thu 19 Dec 2002 News Release Mr. Mark Kolebaba reports DIAMONDS NORTH REPORTS MORE HIGH DIAMOND COUNTS FROM BLUE ICE Diamonds North Resources has recovered more diamonds from the 100-per-cent-owned Blue Ice project, Victoria Island. Samples were collected from Sculptor, Pegasus and Zeta kimberlites along the central portion of the Galaxy structure. The Pegasus lies directly on the Galaxy structure; Sculptor and Zeta are parallel and discrete en-echelon bodies. Sculptor A 208.58-kilogram kimberlite sample collected from several trench sites along a 350-metre section of the Galaxy structure yielded 254 diamonds. Sixty-eight of the stones exceed 0.5 millimetre in at least one dimension and 12 stones exceed one millimetre in at least one dimension. The three largest stones recovered measure: 2.22 millimetre by 2.05 millimetre by 1.10 millimetre; 1.57 millimetre by 1.28 millimetre by 0.92 millimetre; and 1.57 millimetre by 1.54 millimetre by 0.68 millimetre. The Sculptor kimberlite has produced some of the largest stones recovered during the 2002 exploration program. This coarse grained, competent, hypabyssal kimberlite contains abundant olivine macrocrysts and numerous indicator minerals. Sculptor forms part of a large kimberlite dike system of unknown width. It lies parallel and adjacent to the Pegasus kimberlite. Sculptor is located 2.5 kilometres west of the Sand Piper kimberlite, which produced 118 diamonds from a 6.49 kilogram drill core sample. Table I below shows diamond recoveries for Sculptor, Pegasus and Zeta kimberlites. TABLE I DIAMONDS RESULTS Diamonds recovered +0.5 mm Kimberlite Sample Total 1 Axis 2 Axes weight (kg) Sculptor 208.58 254 68 45 Pegasus 336.54 52 7 4 Zeta 234.24 20 2 1 TABLE I DIAMONDS RESULTS Diamonds recovered +1.0 mm Kimberlite Sample Total 1 Axis 2 Axes weight (kg) Sculptor 208.58 254 12 6 Pegasus 336.54 52 1 0 Zeta 234.24 20 0 0 Pegasus From two test pits over the Pegasus kimberlite a total of 336.54 kilograms of kimberlite were collected. The sample contained 52 diamonds, seven of which exceed 0.5 millimetre in one dimension and one stone measuring one millimetre by 0.97 millimetre by 0.67 millimetre. The Pegasus kimberlite is located 100 metres north of Sculptor and is coincident with a 50 to 75 m wide geophysical anomaly that extends for more than 2 kilometres. The sample collected varies from 90% medium grained olivine bearing to 10% very coarse grained olivine rich macrocrystic kimberlite. Pegasus remains a high priority target as the 2002 sample does not determine the diamond content of each phase of kimberlite encountered. The 2003 drill program will be designed to test the diamond potential of each phase. Zeta A total of 234.24 kilograms of kimberlite obtained from a single surface exposure yielded 20 diamonds, two of which are greater than 0.5 millimetre in one dimension and one that is greater than 0.5 millimetre in two dimensions. The Zeta kimberlite is medium grained containing modest amounts of olivine and is a parallel structure located 4.5 kilometres west of the Sand Piper kimberlite. Table II below shows the diamond size distribution according to square mesh sieve analysis provided by SGS Lakefield Research. TABLE II SQUARE MESH SIEVE SIZES Sample 208.58 336.54 234.24 weight Sculptor Pegasus Zeta (kg) Sieve size Diamonds Diamonds Diamonds +1.180 mm 2 - - +0.850 mm 2 - - +0.600 mm 9 1 1 +0.425 mm 21 2 0 +0.300 mm 33 3 1 +0.212 mm 48 7 4 +0.150 mm 69 16 5 +0.100 mm 70 23 9 --------- --------- --------- Total stones 254 52 20 ========= ========= ========= Results from all three kimberlites show that the central part of the 20-kilometre Galaxy structure is diamondiferous. The Sculptor kimberlite in particular illustrates that portions of the central Galaxy structure are highly enriched in diamonds. This area will be a major focus for exploration drilling in 2003. The coarse grained kimberlite material at Pegasus remains a high priority. Kimberlite samples were collected in the field. Sample bags were sealed in solid containers and shipped by air to SGS Lakefield Research in Ontario. SGS Lakefield's standard caustic fusion diamond recovery method was used for all sample results. SGS Lakefield is accredited by the Standards Council of Canada to the ISO/IEC guide 25 standard for specific registered tests.