Diamonds North Resource Ltd. (TSX-V: DDN) and Uranium North Resources Corp (TSX-V: UNR) have formed a 50:50 strategic partnership, Minerals North LLC. 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.
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.
