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Diamonds North Resources to Start Beluga-3 Bulk Sample Processing

Diamonds North Resources Ltd. (TSX VENTURE:DDN) announces it has completed a 25 tonne bulk sample of the Beluga-3 kimberlite, located on its 100% owned Amaruk project in Nunavut.

Approximately 50% of the sample is at the Saskatchewan Research Council Laboratory awaiting processing. The remaining portion of the sample is in transport to the lab. Processing using a Dense Media separation plant is expected to start by the beginning of November.

The 2009 mini-bulk sample of Beluga-3 demonstrated larger diamond potential giving the Company confidence to proceed with this bulk sample (see News Release NR09-17, December 1st, 2009). Based on rough reconstructive analysis provided by Saskatchewan Research Council Laboratory, the Company estimates the largest diamond fragment recovered in 2009 to have been a diamond between 0.2 to 0.25 carats (see News Release NR10-05, April 16th, 2010).

Three percussion RC drill holes were drilled outwards from the known Beluga-3 magnetic high to test for the presence of a non-magnetic phase of kimberlite. All three holes intersected non-magnetic material surrounding the magnetic high that was the original Beluga-3 kimberlite expression. This increases the size of the Beluga-3 body to a minimum of 1.0 hectare. These percussion RC cuttings will be processed separately to compare the kimberlite indicator mineral chemistry and microdiamonds with that of previous RC cuttings and the new RC bulk sample material.

Further interest in the Beluga-3 area has developed as a result of a comparison of garnet chemistry from the Beluga-3 kimberlite and surrounding till samples. A high priority garnet population observed in the till was not recovered in the 2009 Beluga-3 kimberlite sample, suggesting an untested phase of kimberlite is present in Beluga-3 and/or additional undiscovered kimberlites in the immediate area.

The Beluga-3 bulk sample was drilled using a low cost, light weight bulk sampling drill that utilizes flood reverse circulation without percussion to reduce and/or eliminate significant diamond breakage.

A total of 25 kimberlites have been discovered on the Amaruk property and 90% of the kimberlites processed for diamonds are proven to be diamondiferous. Hundreds of untested anomalies remain and numerous kimberlite indicator mineral trains remain unresolved offering high potential for additional kimberlite discovery on the property. Diamonds North tested a time domain electromagnetic system on the property this season and will continue refining kimberlite targeting methods.

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 exploration programs and the verification and quality assurance of analytical results.

Source: Diamonds North Resources Ltd.


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