b4atf
12 years ago
News - Friday, May 24, 2013
Adamera Advances the Poland-China Gold Project in Washington State
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Vancouver, BC, May 24, 2013 - Adamera Minerals Corp. (TSX V: ADZ) announces that it has completed detailed mapping and sampling of the historic accessible mine workings on the 100% owned Poland China gold project in Washington State. The data from the geological mapping considerably modifies and advances the company's exploration model for the property. During the program two additional historic workings have been identified suggesting that gold mineralization is more widespread. Assay results are pending.
This new mapping information provides a geological relationship between the 2012 trench results and the historic mine 55 metres to the northeast. Trenching in 2012 uncovered a zone assaying 5 g/t gold over 10 metres including a 1.5 metre sample that assayed 20 g/t gold. In addition to mapping, work progress includes:
1.More than 60 rock samples collected and submitted for assay and multi-element analysis;
2.More than 650 surface sediment "soil" samples collected, analysis underway
3.Detailed VLF-EM survey has been initiated and is currently underway
"The work recently completed by our geological team provides considerable insight to the structural and stratigraphic controls of gold mineralization on the property and as a result the size potential increases significantly. This refined geological model now provides clear targets for drilling," says Mark Kolebaba, President and CEO of Adamera Minerals Corp.
Field crews have identified additional historic mine workings in two locations on the property not previously known to the company. The workings at a site nearly 2 kilometres north of the Poland China Mine are the most extensive on the property with the exception of the Poland China Mine and include at least 30 metres of tunnels into graphitic argillite similar to rocks at the Poland China Mine. An adit located 500 metres west along strike of the Poland China mine has also been identified. Samples from these old exploration adits and mine workings will provide valuable information and will be assayed for gold.
Adamera Minerals
Adamera's strategy is to delineate a high-grade gold deposit near the Kinross Kettle River gold mill, located only 80 km from the property. The mill is currently operating at half capacity with ore shipped 70 kilometres from their 1.3 million ounce Buckhorn mine. Average grade of the Buckhorn mine is 11.3 g/t gold and production costs are reported to be between $400 and $500 per ounce. With the Buckhorn mine having only 3-4 years mine life remaining, Adamera is determined to discover a high grade gold deposit close to the Kinross infrastructure.
Poland China Mine
The Historic Poland China Gold Mine is located approximately 10 kilometres from the Kinross Buckhorn gold mine and less than 80 kilometres, by existing road, to the Kinross Kettle River mill. Poland China is considered to be a sedimentary hosted gold deposit.
The vein mined at Poland China is hosted within brecciated graphitic argillite and has a reported grade of 8.2 g/t to 12.7g/t gold over an average mining width of 2.1 metres. Graphite is considered important at Poland China as it may have formed a reducing chemical environment causing gold to precipitate.
A VLF-EM survey carried out by Adamera identified numerous conductors that appear to be related to graphite rich beds. Trenching across a VLF-EM anomaly with a coincident gold anomaly in soil exposed a graphite rich zone with quartz veining and pyrite. Within this zone, gold assayed 5 g/t over 10 metres including a 1.5 metres sample that assayed 20 g/t gold*. Old workings in the Poland China mine with similar north-south orientations suggest further evidence for north-south oriented mineralization possibly related to the graphite beds.
The 2013 program is designed to assess the company's current geological model as well as identify and test targets to demonstrate size potential for the property.
*The excavator could not reach bedrock over a 1.5 metre zone adjacent to the 20 g/t sample. This un-sampled portion was arbitrarily assigned a gold value of zero as it could not be assayed.
Graham Gill P.Geo and Bruce Kienlen P.Geol are the Qualified Persons as defined by National Instrument 43-101 and are responsible for overseeing exploration activity and reviewing data collected on the project. The historical data is from private reports and has not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
Please join us May 26-27 at the World Resource Investment Conference and also follow us on twitter @ADZ_Adamera for updates and information.
On behalf of the Board of Directors,
Mark Kolebaba
President & CEO
b4atf
12 years ago
Vancouver, BC, May 06, 2013 -- Adamera Minerals Corp. (TSX V: ADZ) has begun the spring exploration program on its 100% owned Poland China gold property in Washington State. The program will focus on further refining targets in preparation for a trenching and drilling program. Poland China is a historical high-grade gold producer.
"Using a new geological model, we have identified several targets that demonstrate potential for a sizable high-grade gold system. Our goal is to further refine these targets to minimize exploration risk. On completion of this current groundwork program preliminary drilling using light weight equipment is being considered. This equipment is capable of testing the targets for a fraction of the cost of conventional drilling which is appropriate in the current market," says Mark Kolebaba, President and CEO of Adamera Minerals Corp.
The Adamera exploration team is currently conducting geological mapping and detailed sampling of the accessible mine workings to refine our geological model for the property. Specifically the data will be used to better define the structural and stratigraphic controls on the known high-grade gold mineralization. Determining the extent of mineralization at surface by collecting additional soil samples along a high priority geochemical/geophysical corridor identified in 2012 is a priority. Further VLF-EM and other geophysical methods may be employed. The majority of this work is expected to be completed by the end of June.
About Poland China
The Historic Poland China Gold Mine is located approximately 10 kilometres from the Kinross Buckhorn gold mine and less than 80 kilometres, by existing road, to the Kinross Kettle River mill. Poland China is considered to be a sedimentary hosted vein gold deposit.
The vein mined at Poland China is hosted within brecciated graphitic argillite and has a reported grade of 8.2 g/t to 12.7g/t gold over an average mining width of 2.1 metres. Graphitic sediments are considered important at Poland China as they appear to be associated with gold mineralization.
A VLF-EM survey carried out by the company identified numerous north-south trending conductors that appear to be related to graphite rich beds. Trenching across a VLF-EM anomaly with a coincident gold anomaly in soil exposed a graphite rich zone with quartz veining and pyrite. Within this zone, gold assayed 5 g/t gold over 10 metres including 20 g/t gold over 1.5 metre. Old workings in the Poland China mine with similar north-south orientations suggest further evidence for north- south oriented mineralization related to the graphite beds.
The 2013 program is designed to assess the company's current geological model, identify and test targets to demonstrate size potential for the property.
Adamera's strategy is to delineate a high-grade gold deposit near the Kinross Kettle River gold mill, located only 80 km from the property. The mill is currently operating at half capacity with ore shipped 70 km from their 1.3 million ounce Buckhorn mine. Average grade of the Buckhorn mine is 11.3 g/t gold and production costs are reported to be between $400 and $500 per ounce. With the Buckhorn mine having only 3-4 years mine life remaining, Adamera is determined to discover a high grade gold deposit close to the Kinross infrastructure.
Graham Gill P.Geo and Bruce Kienlen P.Geol are the Qualified Persons as defined by National Instrument 43-101 and are responsible for overseeing exploration activity and reviewing data collected on the project. The historical data is from private reports and has not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
On behalf of the Board of Directors,
b4atf
12 years ago
Diamonds North and Uranium North Announce Trenching Commences on the Poland China Gold Project
Vancouver, BC, October 11, 2012 -- Diamonds North Resources Corp. (TSX-V: DDN) and Uranium North Resources Corp (TSX-V: UNR) ("the Companies") announce that their U.S subsidiary, Minerals North LLC has completed the initial evaluation period on the Poland China property and has elected to initiate its right and option to acquire 100 percent interest in the project by making the first lease payment of $15,000.
Prior to making this election, work on the property was limited to non-disturbance surface work such as mapping, prospecting, soil sampling and magnetic surveying including a recent VLF-EM survey. To follow up on encouraging results near the historic mine, an excavator has been deployed to trench specific targets.
"Our initial exploration program has significantly advanced this property. Trenching will provide us with an effective low cost glimpse of the bedrock directly below the overburden in an attempt to identify and sample bedrock sources that may be causing the various anomalies," says Mark Kolebaba, President and CEO of the Companies.
Several previously announced targets have been selected for trenching including:
1.A NE trending soil anomaly with gold values as high as 2.47 g/t gold.
2.A soil anomaly adjacent to a historical 14 g/t gold rock sample near an intense rusty altered zone.
3.A 26.8 g/t gold rock sample 55 metres south of the historic gold mine.
VLF-EM surveying has been completed in the southern part of the property and interpretation is underway, additional targets for trenching may be identified from this survey.
Recent results from soil samples in the northern part of the property have delineated several geochemical anomalies, VLF-EM surveying is being considered for the area.
The Poland China property is 10 kilometres west of the Kinross Buckhorn Mine and lies within the same geological formation. The main vein on the Poland China property is the Kismet vein which is reported to extend for more than 750 metres. Historically only about 100 metres of the vein has been mined at shallow depth. The Kismet vein averages 2 metres in width and is as wide as 4.5 metres. Mine grades of 8.22 g/t to 12.7 g/t gold and 13.7 g/t silver have been recorded. Other mineralized veins reportedly exist on the property, one of which was 2.6 metres wide and traceable for 1500 metres.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining low cost exploration. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.
Graham Gill P.Geo, and Bruce Kienlen P.Geol are the Qualified Persons as defined by National Instrument 43-101 reviewing the data collected and overseeing the project. All the Minerals North samples were analyzed by ALS Canada Ltd using ICP -MS. Gold values were determined on both 0.5 and 25 gram aliquots from each sample. The historical work is from private historic reports and has not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
On behalf of the Board of Directors,
Mark Kolebaba
President & CEO
b4atf
12 years ago
Vancouver, BC, October 4, 2012 - Diamonds North Resources Ltd. (TSX-V: DDN) and Uranium North Resources Corp. (TSX-V: UNR) ("the Companies") announce that their U.S subsidiary Minerals North LLC has completed the first phase of the 2012 exploration program on the Poland China gold property in Okanogan county, Washington State and that several target areas have been identified.
A follow up exploration program to better define targets for drill testing has been initiated. Work plans include mechanical trenching, VLF-EM surveying, additional prospecting and soil sampling which should be completed by November.
"Our systematic exploration approach has served well at the Poland China Mine project. We have identified significant targets in direct proximity of the mine and other areas on the property that do not appear to have been tested previously," says Mark Kolebaba, President and CEO of the Companies.
Initial exploration on Poland China included mapping, magnetic surveying and soil sampling. As a result, at least five bedrock mineralized zones including historical workings and dumpsites and excluding the main mine workings have been identified with gold values over 1 g/t gold and as high as 26.8 g/t gold.
Eight gold anomalies in soil have been outlined on parts of the property, three of which occur in proximity to the known mine, representing possible mineralized extensions of the Poland China Kismit vein system. A prominent 400 metre geochemical anomaly with soil samples yielding up to 2.47 g/t gold is a high priority target.
Mapping has delineated a prominent volcanic/sedimentary contact adjacent to the Poland China Mine that extends 3 kilometres across the property. Soil samples collected along parts of the contact show elevated to anomalous gold over more than 600 metres (anomalous soil values range from 0.01g/t gold to 2.47 g/t gold).
Historic data recently interpreted, reveals high gold values up to 287 g/t gold from exploration pits and shafts over an extensive area on the property. Some of the site locations have been confirmed, however, many have not yet been located.
The Poland China property is 10 kilometres east of the Kinross Buckhorn gold mine and lies within the same geological formation. The main vein on the Poland China property is the Kismet vein which is reported to extend for more than 750 metres. Historically only about 100 metres of the vein has been mined. The Kismet vein averages 2 metres in width and is as wide as 4.5 metres. Mine grades of 8.22 g/t to 12.7 g/t gold and 13.7 g/t silver have been recorded. Other mineralized veins reportedly exist on the property, one of which was 2.6 metres wide and traceable for 1500 metres.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining low cost exploration. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.
Graham Gill P.Geo. and Bruce Kienlen P.Geol are the Qualified Persons as defined by National Instrument 43-101 reviewing the data collected and overseeing the project. All the Minerals North samples were assayed by ALS Canada Ltd. The soil sample that assayed 2.47 ppm Au is a 0.5 gram aliquot analyzed by Mass Spectrometer. The historical work is from private historic reports and has not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
b4atf
12 years ago
News Release
September 18, 2012
DDN - TSX.V
Diamonds North And Uranium North To Evaluate Gold Potential Of The Alder Mine In Washington State
Vancouver, BC, September 18, 2012 - Diamonds North Resources (TSX-V: DDN) and Uranium North Resources Corp. (TSX-V: UNR) ("the Companies") announce that their wholly owned U.S. subsidiary Minerals North LLC has signed a lease agreement on the privately owned Alder Mine project in Okanogan County, Washington State. In addition to the lease agreement, 13 unpatented lode claims have been staked on surrounding federal land.
An initial exploration program is underway and will include detailed mapping, geophysical surveying and prospecting. Detailed mapping of the open pit exposures will attempt to identify any zones of high grade gold within the known deposit, geophysical surveying to test the limits of the known deposit and prospecting the property surrounding the mine to identify other zones of mineralization.
The Alder Mine, currently inactive, is a base metal deposit with strong gold and silver credits that was mined from the late 1930's to the 1950's. During a preliminary property investigation by Minerals North, eight random grab samples were collected from the surface of an open pit. Several high gold values were obtained
"Historically, the bulk of the value mined at the Alder deposit was attributed to the base metal content with significant precious metal credits. Our preliminary sampling returned high gold/silver values and with today's precious metal prices, we think Alder has potential as a stand-alone gold deposit. Our initial program will focus on the open pit exposures in an attempt to identify any significantly wide zones and structures with high gold/silver content," says Mark Kolebaba, President and CEO of Uranium North and Diamonds North Resources.
Historic shipping records for 62,700 tonnes of ore from the Alder Mine produced an average of 6.85 g/t gold, 5.49 g/t silver, and 0.78% copper. Records from an additional 15,800 tonnes of ore yielded on average 2.64 g/t gold, 15.43 g/t silver, 1.87% zinc and 0.11% lead. This provides information on average grades of various metals within the deposit and indicates the presence of at least two types of ore; a high gold/copper ore and a low gold/copper ore with high zinc, silver and minor lead.
The terms of the lease agreement include payments of $10,000 for the first year, $15,000 for the second year, $20,000 for the third and fourth years and $25,000 for all years beyond until the agreement terminates or Minerals North LLC purchases the surface rights on the land.
The surface rights on the property may be purchased for 200% of the fair market value excluding any value attributed to mineral content on the property. A 3% royalty on the property and a 0.5% royalty on any unpatented claims staked within an 805 metre radius will be reserved for the property owner. Two percent of the royalty on the private land can be purchased for $3,000,000. All lease payments are considered advance royalty payments in the event of a royalty buyout.
The property owner will receive a one-time bonus payment of $50,000 if more than 24,380 metres of core drilling is completed on the property. If the property goes into production, a 0.25% royalty will be payable to a consulting geologist. The royalty may be purchased at any time for the value of 300 ounces of gold.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining a low cost of operation. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.
Graham Gill P.Geo and Bruce Kienlen P.Geol will be the Qualified Persons as defined by National Instrument 43-101 reviewing the data collected and overseeing the project. All Minerals North sample analyses were completed by ALS Canada Ltd. The historical data is from private reports and has not been verified by the Companies, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
On behalf of the Board of Directors.
Mark Kolebaba
President & CEO
b4atf
12 years ago
Diamonds North And Uranium North Complete Work On The Golden Reward Project
Vancouver, BC, August 14, 2012 - Diamonds North Resources (TSX-V: DDN) and Uranium North Resources Corp. (TSX-V: UNR) ("the Companies") announce the completion of the first phase of the 2012 exploration program on the Golden Reward gold property in Okanogan County, Washington State. The Golden Reward property is located approximately 60 kilometres from Kinross's Kettle River mill.
Detailed magnetic surveying, soil sampling and prospecting are now complete. Results from these programs will be used to define drill targets.
The Golden Reward property hosts an epithermal gold bearing vein system that extends across the property for more than 1 kilometre and lies within the Toroda Creek Graben. It is composed of two structurally complex, highly silicified breccia zones containing gold bearing quartz veins. Three separate vein trends have been identified within the breccia zone that each measure up to 20 metres wide.
A grab sample collected from the structure during a recent site visit from exposed vein material yielded 14 g/T gold; other grab samples assayed from 0.52 g/T to 1.59g/T gold.
"We think Golden Reward is one of the best untested epithermal systems in Washington State and provides us with an exciting exploration opportunity that is now drill ready," says Mark Kolebaba, President and CEO of the Companies.
Historic surface sampling data indicates that in general gold values improve at lower topographic elevations. This target has never been tested at lower structural depth. The opportunity here is to test for high grade gold/silver zones below depths of 200 to 300 metres. When all of the data is collected from this first phase of exploration, targets will be defined to drill test the gold bearing structures at depth.
Small scale historical mining was conducted from several adits on and near the property. The property has had little modern exploration with the exception of seven drill holes from three drill sites by Kennecott in 1989-90. Two of the 7 holes steepened and failed to intersect the target. The remaining 5 holes intersected the mineralized structure at shallow depth. The best reported gold values from this limited drilling campaign were 1.40 g/T gold over 8.5 metres and 1.09 g/T gold over 9.8 metres including 2.74 g/T gold over 4.27 metres.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining a low cost. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.
b4atf
13 years ago
News Release - Wednesday, June 13, 2012
Diamonds North Continues to Build a Postion in Washington State with Additional Gold Asset
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Vancouver, BC, June 13, 2012 - Diamonds North Resources (TSX-V: DDN) and Uranium North Resource Corp. (TSX-V: UNR) ("the Companies") announce the acquisition of the Empire Creek Gold/ Silver property in Washington State. Highlights from a previous trenching program include results as high as 39.8 g/t gold over three metres and a drill intercept of 18.3 metres assaying 12.1 g/t gold with 150 g/t silver.
The property is 10 kilometres south of the K2 Mine and only 20 kilometres by existing roads, from the Kinross Kettle River Mill. Both Empire Creek and the K2 Mine are hosted within the Republic Graben structure. From 1996 to 2005 the K2 Mine produced almost 500,000 ounces of gold at an average grade of 7.44 g/t from an epithermal style gold vein system. Mining at K2 was entirely underground.
Known gold occurrences at Empire Creek are related to replacement style mineralization; however, being on the same structure as the K2 Mine, epithermal style mineralization is also a target.
A total of 24 holes on the property and 14 additional holes in the area were drilled in the 1980's. The top 10 intercepts on the property are shown in Table 1 below. Drilling included a combination of angled and vertical reverse circulation, rotary and core holes. There are also two adits on the property. Previous drilling and sampling appears to have been quite random in nature and focused on the eastern side of the property. Numerous surface samples with high gold on the western side of the property have never been drill tested.
"Untested high grade mineralized gold zones within 20 kilometres of an operating gold mill represents a significant opportunity and fits with the Companies strategy of targeting high grade deposits that can be mined underground," says Mark Kolebaba, President and CEO of the Companies.
The 2012 exploration program on the Empire Creek property will include mapping, prospecting and magnetic surveying, focusing on the high grade zones that have never been drill tested.
The property was acquired by staking Federal controlled land in two separate blocks. The main block covers a 1.1 square kilometre area with rock samples showing elevated to high grade gold and silver values.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have formed and jointly own Minerals North LLC, a Nevada registered company with the objective to explore mineral potential in Washington State. This partnership demonstrates the Companies' commitment to increasing shareholder value while maintaining a low cost. The Companies are actively seeking joint venture partners for our northern Canadian projects as they represent significant opportunity.
Each property has a 0.25% royalty payable to a consulting geologist. Each royalty may be purchased at any time for the value of 300 ounces of gold.
Graham Gill P.Geo is the Qualified Person as defined by National Instrument 43-101 reviewing the data in this news release. The historical work is from private reports written by AMACO, Curlew Lake Resources, US Borax and Kimberley Gold Mine. These reports have not been verified by the Company, however, it appears to have been completed under standard best practices consistent with the time and appears to be of reasonable quality.
On behalf of the Board of Directors.
Mark Kolebaba
President & CEO
b4atf
13 years ago
Re: News Release - Thursday, June 07, 2012
Diamonds North Begins Exploration Program on the Poland China
Gold Project in Washington State
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Vancouver, BC, June 07, 2012 - Diamonds North Resource Corp. (TSX-V:
DDN) and Uranium North Resources Corp (TSX-V: UNR) ("the Companies")
announce the commencement of the 2012 exploration program on the Poland
China gold property in Washington State. The Poland China property is
10 kilometres east of the Kinross Buckhorn Mine and lies within the
same geological formation.
The main vein on the Poland China property is the Kismet vein which is
reported to extend for more than 750 metres. Historically only about
100 metres of the vein has been mined.
The Kismet vein averages 2 metres in width and is as wide as 4.5
metres. Mine grades of 8.22 g/T to 12.7 g/T gold and 13.7 g/T silver
have been recorded. Other mineralized veins reportedly exist on the
property, one of which was 2.6 metres wide and traceable for 1500
metres.
Phase one of the exploration program will include geological mapping,
soil sampling and geophysical surveying. The mapping and sampling will
be conducted to delineate the extent of the Kismet vein and other vein
occurrences on the property. The work program is expected to be
completed by the end of June. The objective of this program is to
define drill targets for an upcoming drill campaign.
"This is an extensive targeting program that will significantly advance
the Poland China project at a cost of only $25,000 to each company. Our
move to Washington State under this partnership allows us to continue
to explore projects as prospective as our northern projects at a
fraction of the cost," says Mark Kolebaba, President and CEO of the
Companies.
Diamonds North Resources Ltd. and Uranium North Resources Corp. have
formed and jointly own Minerals North LLC, a Nevada registered company
with the objective to explore mineral potential in Washington State.
This partnership demonstrates the Companies' commitment to increasing
shareholder value while maintaining a low cost. The Companies are
actively seeking joint venture partners for our northern Canadian
projects as they represent significant opportunity.
Graham Gill P.Geo, is the Qualified Persons as defined by National
Instrument 43-101 reviewing the data in this news release. All the
Minerals North samples were completed by ALS Canada Ltd. The
historical work is from private reports and has not been verified by
the Company, however, it appears to have been completed under standard
best practices consistent with the time and appears to be of reasonable
quality.
On behalf of the Board of Directors.
Mark Kolebaba
President & CEO
b4atf
13 years ago
Re: News Release - Thursday, May 31, 2012
Diamonds North and Uranium North Acquire Gold Projects in
Washington State
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Vancouver, BC, May 31, 2012 - Diamonds North Resource Corp. (TSX-V:
DDN) and Uranium North Resources Corp (TSX-V: UNR) ("the Companies")
announce the formation of a 50:50 strategic partnership, Minerals North
LLC, a Nevada incorporated company. The partnership allows both
companies to explore new opportunities in Washington State at reduced
cost and risk while maintaining our northern Canadian assets. The 100%
owned private company was created to acquire projects with the
potential for high grade ore deposits that allow for underground mining
and direct access to existing processing facilities.
Minerals North LLC is targeting north eastern Washington, an area where
numerous historical mines exist and due to previously depressed
commodity prices may have been overlooked. These areas have never been
explored using modern exploration techniques or geographical models.
The projects include two gold/silver leases on private land, Golden
Reward and Poland China (See terms below). The southern geographical
location, infrastructure and climate allow for year round, low cost
exploration activities and consistent news flow.
"We believe that Washington is equally as prospective as northern
Canada, however, exploration costs in Washington are estimated to be 75
to 80% less than northern Canada. Numerous high grade deposits have
been mined in Washington State and it is currently host to one of the
highest grade gold deposits being mined in the USA today. The
development of the Kinross Buckhorn Gold Mine in 2008 indicates that
Washington State is serious about mining and the door is open to this
type of investment," Says Mark Kolebaba, President and CEO of Diamonds
North Resources.
The Poland China Gold Historic Mine is located approximately 10
kilometres from the Kinross Buckhorn gold mine and less than 75
kilometres, by existing road, to the Kinross Kettle River gold
processing mill. Poland China is considered to be a sedimentary hosted
vein gold deposit. The main Kismet Vein had a mining grade of 8.2 g/T
to 12.7g/T gold. The vein averages 2.1 metres in width increasing up to
4.5 metres wide and is hosted within graphitic argillite.
Historic reports state that the Kismet vein is traceable on the surface
for a length of 750 metres and there are at least three other veins in
the area that have been partly developed, one of which was 2.6 metres
wide and traceable for 1500 metres. The mine workings cover only about
100 metres of strike length along the Kismet vein with two levels,
leaving much of the vein un-mined. Since mining at Poland China ceased
around 1940 there has been no recorded systematic and comprehensive
exploration program on the property.
Samples collected during a recent site visit yielded a sample with 26
g/T gold 3 kilometres north of the historic mine site on the property.
As well, two samples collected from the main adit returned 12.7 g/T and
15.5 g/T gold.
The 2012 initial exploration program will include detailed mapping,
ground geophysics and soil sampling to delineate the extent of the
Kismet vein and identify additional mineralized veins on the property.
The exploration work will be conducted in the context of the
sedimentary hosted vein style deposit model. This deposit style has the
potential for multi-million ounces of gold. An example of this style of
deposit is the Ballarat gold deposit in Australia with an estimated
total resource of ~20 million ounces of gold.
The Golden Reward property is located approximately 60 kilometres from
Kinross's Kettle River mill. The property hosts an epithermal gold
bearing vein system that extends across the property for more than 1
kilometre. Small scale historical mining was conducted from several
adits on and near the property. The property has had little modern
exploration with the exception of seven drill holes from three drill
sites by Kennecott in 1989-90. Two of the 7 holes steepened and failed
to intersect the target. The remaining 5 holes intersected the
mineralized structure at shallow depth. The best reported gold values
from this limited drilling campaign were 1.40 g/T gold over 8.5 metres
and 1.09 g/T gold over 9.8 metres including 2.74 g/T gold over 4.27
metres.
A grab sample collected during a recent site visit from exposed vein
material yielded 14 g/T gold; other grab samples assayed from 0.52 g/T
to 1.59g/T gold.
Golden Reward is close to drill-ready. Historic surface sampling data
indicates that in general gold values improve at lower elevations. This
target has never been adequately tested at depth. The opportunity here
is to test for high grade gold/silver zones below depths of 200 to 300
metres.
During the 2012 exploration program the detailed historic geological
map will be geo-rectified prior to outcrop sampling. A detailed
magnetic survey will be completed to better position the mineralized
structure in preparation for drilling and attempt to identify other
existing structures on the property to test.
Minerals North LLC is a 50/50 partnership and 100% of all costs
associated with Minerals North will be shared by Diamonds North and
Uranium North. Uranium North will serve as the initial project
operator.
The Terms of the Lease Agreements:
Poland China
Minerals North LLC has paid US$5,000 to access the property until
September 1, 2012, and following that, by making the following lease
payments:
i) US$15,000 on or before October 1, 2012
ii) US$25,000 on or before October 1, 2013
iii) US$30,000 on or before October 1, 2014
iv) US$35,000 on or before October 1, 2015
v) US$40,000 on or before October 1, 2016 and for each subsequent
anniversary until purchase of the property.
Minerals North LLC has the right to purchase the entire property at any
time for the greater of US$7,500,000 or 200% of fair market value of
surface rights only, excluding any value attributed to any minable
commodities that may be deliniated. The property is subject to a 3%
NSR, of which 1.0% can be purchased for US$1,000,000 and a further 1.0%
can be acquired for an additional US$2,000,000.
Golden Reward
Minerals North LLC has paid US$20,000 to access the property until
August 1, 2012, and following that, by making the following lease
payments:
i) US$25,000 on or before September 1, 2012
ii) US$30,000 on or before September 1, 2013
iii) US$40,000 on or before September 1, 2014 and each subsequent year
until 2032 or purchase of the property.
Minerals North LLC has the right to purchase the surface rights at any
time for US$8,000,000 and the property is subject to a 3% NSR, of which
Minerals North, LLC has the option to purchase one-half of the NSR
(1.5%) for US$2,000,000.
Each property has a 0.25% royalty payable to a consulting geologist.
Each royalty may be purchased at any time for the value of 300 ounces
of gold.
Washington State is a highly prospective mineral rich region steeped in
mining history. The same productive geological belts in British
Columbia extend into the state. The region has a prolific mining
history dating back to the 1800's and in the last 50 years, Washington
has produced an estimated 6 to 8 million ounces of gold, and
significant amounts of silver and copper. Over the last 25 years there
has been limited modern systematic exploration conducted in Washington.
The most recent mine development in the state is the Kinross Buckhorn
gold mine that opened in 2008 and has an estimated resource of one
million ounces gold with an average grade of 11.3g/T gold. Kinross also
operates the Kettle River gold processing mill which is currently
operating below full capacity.
Washington State is highly accessible and has well established
infrastructure. A dense network of roads provides inexpensive, easy
access. Electricity, nearby mineral processing facilities and access to
major ports and labour force all contribute to lower cost of
operations. Working in this area will allow for a much larger
percentage of our exploration resources to be allocated to our
geological efforts.
The Companies actively seeking joint venture partners for our northern
Canadian projects as they represent significant opportunity. We are
eager to initiate our exploration programs in Washington State and look
forward to reporting further developments in the coming weeks and
months.
Graham Gill P.Geo, is the Qualified Persons as defined by National
Instrument 43-101 reviewing the data in this news release. All the
Minerals North samples were completed by ALS Canada Ltd. The
historical work is from private reports and has not been verified by
the Company, however, it appears to have been completed under standard
best practices consistent with the time and appears to be of reasonable
quality.
On behalf of the Board of Directors.
Mark Kolebaba
President & CEO
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