 | 
 | | 
| | |
| | May 2011
 In 2010 Diamonds North recognized emerging opportunities in the metal markets and leveraged its vast northern database to identify numerous gold, nickel, copper, silver and bismuth targets in an effort to create value for shareholders.
We are currently experiencing a bull market in precious and base metals and to capitalize on this opportunity Diamonds North has drawn from its geological databases to identify precious and base metal opportunities. As a result of our regional search of 300 million acres of off-title land and exploration of 27 million acres of claims and permits, the Company has gained immeasurable amounts of geological data for diamonds as well as other commodities. These databases are owned by the shareholders and it is our duty to realize value for these assets.
Diamonds North remains committed to its goal of discovering an Ekati or Diavik sized diamond deposit and has recently announced the discovery of an innovative exploration tool that has lead to the identification of a new generation of kimberlite targets on Amaruk.
 Diamonds:Amaruk remains one of Canada's top opportunities for a significant diamond discovery. To date, a total of 25 kimberlites have been discovered of which 90% are diamondiferous. Several kimberlites have shown very high diamond content; what we have not seen yet is an abundance of commercial size stones. This is not unusual considering that only 8 of over 160 kimberlites discovered at the Ekati Diamond Mine are in production and the first 25 to 30 kimberlites discovered at the Diavik Diamond Mine were either barren or very weakly diamondiferous. Kimberlite indicator mineral chemistry across the property suggests high diamond potential, and a diamond stability field beneath Amaruk compares favourably with the Diavik and Ekati kimberlite fields, therefore we remain confident that commercial size stones
exist on the property.
 As a result of nickel exploration, several new kimberlite targets have been identified on the Amaruk property by adopting the use of an innovative electromagnetic(EM) airborne geophysical method that is interpreted to penetrate the conductive overburden cover in the region. This targeting has led to the identification of sizable kimberlite targets (greater than 400 metres in diameter) with kimberlite indicator mineral support and topographic verification (See Figure 1). The potential of this EM method prompted the recent partnership with Indicator
Minerals Inc. on the adjacent Barrow Property and provides Diamonds North with the opportunity to expand the application of this targeting system over a larger prospective region. This could be a significant breakthrough for discovering economic kimberlites in the region especially since the kimberlites mined at the Ekati and Diavik Diamond Mines are EM conductors. Kimberlite indicator mineral trains with highly prospective chemistry still remain unresolved across the property. Plans to expand and evaluate this new generation of prospective targets are underway.
Diamond exploration in unexplored northern terrains has the potential to lead to the discovery of other commodities. There are numerous examples of this including the discovery of the Voisey's Bay nickel deposit
Diamonds North has adopted a systematic approach to data collection that ensures the best diamond data is acquired and simultaneously, additional data is obtained in order to assess our large land packages for other commodities and create additional value. The Company's intense diligence and drive to add value has resulted in the identification of numerous precious and base metal opportunities. Diamonds North has successfully assembled highly prospective land packages for uranium, nickel, copper-silver-bismuth, and most recently gold.
Gold: The recovery of gold grain data from till samples collected for diamond exploration provides an extremely effective way of assessing gold potential over very large areas at a low cost. Detailed analysis of the gold grains has led to the discovery of five high priority areas for targeting.
At Amaruk the original heavy mineral data set for diamond exploration covered an area approximately 300 x 300 kilometres in size. Anomalous gold grains occur in one area that measures 80 x 80 kilometres. Minimal prospecting on the property has led to the discovery of numerous multigram gold occurrences providing district scale potential. Some of the most prospective areas have not yet been evaluated, this next exploration season will go beyond simply prospecting to provide a better understanding of this new unexplored terrain and we believe this will result in the discovery of several new gold targets.
Our most advanced prospect HI-1 is on the Halkett Inlet project which is just North of Amaruk and less than 5 kilometres from tidewater. HI-1 has yielded gold values as high as 24 grams per tonne. From a value driver perspective, the Company will focus on understanding the most advanced gold opportunities by collecting additional geological, geophysical and geochemical data to identify targets with the highest grade and thickness potential.
Nickel: The discovery of the Tunerq Nickel prospect in 2007 on the Amaruk project and subsequent partnership with Minerals and Metals Group Ltd. ("MMG") demonstrates our business strategy and our commitment to provide our shareholders with large scale opportunities while mitigating financial and technical risk. For a relatively small amount of money, we were able to advance a visually identified prospect to a drill confirmed high-grade nickel discovery with district scale potential and attract a major company to partner with us. As we continue to advance our diamond and gold opportunities on Amaruk, MMG will now be advancing our nickel opportunities. MMG may earn 75% of the nickel and other base metals on the Amaruk project, by spending $6 million and completing a scoping and prefeasibility study on any base metal deposit that might be identified. Recently completed pre-feasibility studies in the north have cost between $30 to $35 million. In 2010, MMG spent over $2.5 million to advance the nickel exploration project and have already budgeted for a significant program in 2011.
Copper, Silver, Bismuth & Gold: At the Hepburn property, we have identified significant coppersilver-bismuth-gold mineralization and the current prices of these commodities justify further development. We have demonstrated district scale potential at minimal cost and have identified a large area with numerous high grade copper, silver bismuth and gold occurrences. We believe there is potential for a significant mineralized system to exist on the Hepburn project. In 2011 we are planning a detailed ground geophysical survey along with a comprehensive mapping and geochemical survey to target an IOCG type deposit.
Our strategy behind our multi-commodity approach to exploration is based on capitalizing on rising commodity prices, allowing for a longer period of discovery exploration and more time to attract joint venture partners and financing.
Diamonds North has excelled at reducing risk through technical innovation. Our innovative approach allows us to do more exploration at much lower cost which is especially important in the north. We have adopted the use of more sensitive airborne survey equipment and light weight reverse circulation percussion drills. These advancements allow us to better define subtle targets and test more of them in a shorter period of time, at lower cost, to increase our odds for discovery.
 
Those who invest in exploration companies understand the highrisk and high-reward nature of the business. Diamonds North has focused on reducing financial and technical risks in a variety of ways as demonstrated through our business strategy, joint ventures and innovative exploration techniques thus continually providing new opportunities for discovery.
I would like to acknowledge the efforts and hard work of our outstanding team; their dedication and enthusiasm will be instrumental in our continued success. I also wish to extend my appreciation to our partners, who are an essential component to the success of our business strategy. And finally, to the Board of Directors whose guidance and support are fundamental to our team as we prepare for the next stage of growth.
We embark on our 2011 exploration programs with high expectations and we look forward to reporting further developments on our projects in the coming months.
On behalf of the Board of Directors and the entire Diamonds North Team, I thank you, our shareholders, for your continued support in this venture and for sharing in our determination.
Mark Kolebaba
President, CEO & Director |
| |
| | You can return to the main President's Message page, or press the Back button on your browser.
|
|
|
