RE: RE NEWS OUT=======================================================================
Diamonds North Signs Letter of Intent with MMG on Amaruk Nickel
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VANCOUVER, March 9th, 2010 - Diamonds North Resources Ltd. (TSX-V: DDN)
announces that it has signed a Letter of Intent with Minerals and
Metals Group ("MMG") whereby MMG may earn 75% of the Nickel and other
base metals on the Amaruk Property in Nunavut, Canada, by spending
C$6,000,000 and completing a pre-feasibility study on any base metal
deposit that might be identified on Amaruk.
The projected budget for 2010 is estimated between C$2 to $2.5 million.
MMG and Diamonds North plan to mobilize crews into the Amaruk camp
mid-March, 2010. Included in this year's exploration plan is;
"Nickel exploration by Diamonds North has demonstrated Amaruk as a
significant early stage nickel discovery with district potential. We
are very excited to continue advancing this extensive project in
partnership with MMG as they bring nickel expertise, financial strength
and a strong commitment to developing mining projects in Nunavut" says
Mark Kolebaba President and CEO of Diamonds North.
MMG is an Australian headquartered major producer of zinc, copper,
lead, gold and silver through its operations in Australia and
South-East Asia. MMG has an international portfolio of exploration and
development opportunities, including the High Lake and Izok Lake
deposits in Nunavut, Canada. MMG has shown interest in the Amaruk
nickel project since the announcement of Tunerq.
Drilling of the Tunerq nickel prospect by Diamonds North intersected
Ni-Cu sulfides yielding 2.49% Ni, 0.56% Cu and 0.05% Co over a 9.1
metre zone within a 34.6 metre zone containing 1.05% Ni, 0.26% Cu and
0.02% Co (see News Release NR08-22, dated June 13th, 2008). In
addition to Tunerq, more than 30 ultramafic and mafic targets have been
identified on the property. The abundance of mafic and ultramafic
intrusive bodies on Amaruk and the nickel grades of Tunerq demonstrate
Amaruk as a prime target area for nickel exploration.
Details of the material terms of the Letter of Intent.
In order for MMG to earn a seventy-five (75%) per cent interest in the
nickel and base metals on the Property, MMG must:
Until earn-in conditions are satisfied, MMG shall have exploration
expense obligations of at least C$750,000 per year for years 5 through
8 and C$1,000,000 during years 9 and 10 on the Property to maintain its
right to earn the MMG Mineral Interest:
At any time during years 5 through 8 MMG shall have the option, at its
sole discretion, to suspend, on a one time basis only, exploration
expenditures for a particular year as long as the minimum expenditures
are met to maintain claims in good standing.
In the event that DDN dilutes to 10% or less, such interest shall
convert to a 2% NSR where half of the NSR may be purchased for $500,000.
MMG and DDN have 45 days to complete a formal agreement.
Bruce Kienlen (P.Geol) and Graham Gill (P. Geo) are Diamonds North's
qualified persons reviewing this project.
About Diamonds North
Diamonds North uniquely maximizes value through innovative & cost
effective exploration methods, plus leveraging commodity and business
opportunities derived from its vast land holdings in Canada's under
explored north.
About MMG
MMG owns and operates a portfolio of base metal mining operations,
development projects and exploration fields. The group is a substantial
producer of zinc, copper, lead, gold and silver with mining operations
located in Australia and Asia and a large portfolio of advanced and
early stage exploration projects through Australia, Asia and North
America. Current mining operations include the Century, Golden Grove
and Rosebery mines in Australia and the Sepon mine in Laos, South-East
Asia.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba
President & CEO
For additional information please contact:
Nancy Curry
VP Corporate Communications
Diamonds North Resources Ltd.
Telephone: (604) 689-2010
Facsimile: (604) 484-7143
Email:
info@diamondsnorth.com
Website:
www.diamondsnorth.com