Dianor Resources Inc. (TSX VENTURE: DOR)(OTCQX: RSDNF) is pleased
to announce that there is a sparkling bright future for the
diamonds of the Leadbetter Diamond Deposit, located 12 kms
northeast of Wawa, Ontario, according to RBC Capital Markets and
other commentators. At the recent RBC Capital Markets 4th Annual
Diamond Conference in London, UK, the case was made that prices for
both rough and polished diamonds should continue to rise based on
supply and demand fundamentals(1). And this after a stellar run on
the rough diamond price, which has appreciated over 70% since
January of 2007(2), with similar performance to gold, silver, and
copper. Both coloured and colourless/clear diamonds are
increasingly being viewed as a long term investment asset class,
with new investment vehicles set up to benefit from long term price
appreciation noting short term gains(3).
Demand growth is driven by China and India where urbanisation
and an emerging middle class is expected to increase diamond
consumption by 21% and 24% respectively over the next year(4).
Tight diamond supply in China has seen buyers moving into diamonds
not typically satisfied by classical demand; since 2004, the
Chinese appetite for diamonds has risen from US$150 million to
US$1.2 billion in 2010(5); rough shortages of up to 30% in India is
causing Indian diamond cutting and jewellery concerns to seek
stable long term supplies overseas(6). Many industry sources
estimate that by 2020 the rough diamond shortfall will be in the
order of US$5 billion to US$7 billion annually. Current world
diamond reserves are estimated at only 15 years at current
production levels, (including expansions, new mines and
discoveries). Against this scenario, Dianor's Archean conglomerate
diamond model is potentially applicable to many areas in the world
as recently demonstrated by the discovery of similar
diamond-bearing rocks in Cameroon in Africa(7).
"Given the tight supply-demand fundamentals of the diamond
market", said CEO Mr. John Ryder, P.Geo., "our Leadbetter diamond
deposit appears to be able to satisfy, in part, the supply deficit
of the coming years. We've enjoyed a great deal of success
exploring and developing a large tonnage diamond deposit with
kimberlitic affinity from Archean conglomerates and expect
bulk-sampling to confirm our exploration results".
Because the host rock is not a kimberlite, the deposit is not
limited in size to that of the typical kimberlite. Geological
modelling (NI 43-101 compliant) suggests that the Leadbetter
Diamond Deposit hosts 566 million tonnes (+/- 17 million tonnes) of
diamond-bearing conglomerate(8).
The Dianor model of kimberlitic-affinity diamonds(9) in Archean
conglomerates may be applicable to other cratonic and off-cratonic
terrains around the world. "We've applied this model to northern
Quebec", said Mr. Ryder, "with the discovery of extensive areas of
diamond-bearing conglomerate, including rare purple diamonds. We
are confident that the Dianor diamond discovery model works very
well indeed."
A 7.6 tonne sample of drill cores from 24 drill holes yielded a
grade of 35 carats per hundred tonnes (cpht) for stones greater
than 0.85mm and a grade of 71 cpht for stones greater than 0.425mm
for all diamond-bearing units. Based on drilling the average true
thickness of the Archean conglomerate is 236m.
Drill data for the main conglomerate S1C unit shows high grade
bands ranging to 96.7m in true thickness; diamond content at
0.425mm ranges to 264 cpht; and diamond content at 0.85mm ranges to
214 cpht. Results of exploration to date suggest that the
Leadbetter Diamond Deposit has economic diamond mining potential in
non-Arctic settings, compared to traditional Canadian kimberlite
diamond deposits.
Studies conducted under the auspices of Dr. Maya K. Kopylova at
the University of British Columbia shows that among 75 diamonds
(0.4mm to 2mm) from the conglomerate, nitrogen-bearing diamonds
comprise Type IaA (47%) and Type IaAB (23%) with 5-84% of totally
aggregated N(10). A potentially large proportion of diamonds,
approximately one third belongs to Type II having no measurable
nitrogen. Type 2 stones are dominantly clear and colourless; the
3,106 ct Cullinan and 186 Koh-I-Noor diamonds are two famous
historical examples of Type 2 diamonds. Fluid inclusion composition
studies on 3 diamonds having fibrous coats showed that they have
saline compositions that are similar to those from the Diavik and
Koffiefontein Phanerozoic kimberlites(11). Based on studies of
Afanasiev et. al. the predominance of octahedral shapes and low
proportion of rounded dodecahedroids (less than 20%) present in the
Wawa diamonds is typical of economic kimberlites with high diamond
grades(12). Studies of mineral inclusions in the conglomerate
diamonds determined that they formed in the cold (less than 42
mW/m(2)) harzburgitic mantle at depths 160-225 kms. Such thermal
regime and composition of the mantle root is favorable for diamond
potential(13).
Diamond distribution plots for the S1C unit plot in a manner
similar to kimberlites, from which the Company can derive
predictive models of potential diamond grades.
The Company also announces that it has amended its stock option
plan so as to increase the number of shares that may be issued
under the stock option plan from 11,800,000 to 20,000,000. As there
are currently 266,636,913 common shares issued and outstanding, the
20,000,000 common shares reserved for issuance under the stock
option plan represent 7.5% of Dianor's issued and outstanding
shares. The Board of Directors of Dianor amended the stock option
plan in light of the increase in the number of Dianor's issued and
outstanding shares. Dianor has received all required regulatory
approvals for the amendment to its stock option plan.
The Company's main focus is still the advancement of the 50,000
tonne bulk sample of its flagship Leadbetter diamond project which
is in the same vicinity of the Lucy Iron Range. It is important to
note the year round accessibility of both projects located close to
the mining town of Wawa with its modern hospital, airport, and
experienced mining labour force.
Mr. Jim Steel P.Geo is the Qualified Person for the technical
content of this press release.
About Dianor
Dianor is an innovative exploration company focused on advancing
diamond exploration properties in the Superior Craton of Canada.
The Leadbetter Diamond Project is its most advanced project and is
geographically well situated and easily accessible, some 12
kilometres north east of Wawa in Northern Ontario. Substantial
exploration work has been conducted on the project since 2005 and
in May 2009, the Company received government approval to proceed
with a 50,000 tonne bulk sampling programme of the 2.697 Ma old
Archean Conglomerate. A preliminary tonnage estimate for this
conglomerate is in the range of 549 million to 583 million tonnes
(press release July 24th 2007). In addition to diamonds, the
conglomerate contains gold, sapphires and rubies (press release
January 18th 2007). In 2008, additional diamond discoveries,
including rare purple diamonds, were made by the Company in rocks
of similar type, age (Archean) and geological settings (press
release March 3rd, April 10th,& May 13th 2008) in Quebec. The
Quebec diamond properties have increased our portfolio of low cost,
accessible exploration targets. These diamond discoveries (Ontario
and Quebec) are both unique and amongst the oldest diamond-bearing
occurrences in the world.
References
1. Kilalea, D., Morton, P., Nattel, I., and Gravel, M., RBC
Capital Markets 4th Annual Diamond Conference, May 16, 2011,
London, UK. Used with permission.
2. Stornoway Diamonds & WWW International Diamond
Consultants. 2010. Rough Diamond Price, Indexed. Used with
permission.
3.Unknown. 2011. Codiam Fund Reports Nine Percent NAV Growth in
First Three Months,
http://www.hedgeweek.com/2009/02/16/codiam-fund-reports-nine-cent.htm
4.Srodawa, J.2011. Global Diamond Demand Leads to Shortages and
Price Increases, in, Inflection Points,
http://www.gembrooke.com
5.DeBeers. 2010. China's Polished Diamond Imports - chart.
DeBeers Family of Companies, London, UK, used with permission.
6.Hazarika, N.M. 2011. India Reiterates Demand for Direct Supply
of Rough Diamonds.
http://smetimes.tradeindia.com/smetimes/news/top-stories/2011/Feb/19/india-reiterates-demand-for-direct-supply-of-rough-diamonds.html
7. Teeling,J. 2011. Reconnaissance Program Begins in Cameroon.
Botswana Diamonds PLC News Release 13 April 2011.
http://online.hemscottir.com/ir/bod/ir.jsp?page=news-item&item=647653150966321.
8. Verley, C., D'Amours, and C. Martel. 2007. Preliminary
Tonnage Estimate for the Diamondiferous Conglomerates of the
Leadbetter Diamond Project. NI 43-101 Technical Report, Dianor
Resources Inc, p16.
9. Kopylova, M.G, Afanasiev, V.P., Bruce, L, and J. Ryder.
Diamondiferous Conglomerate Preserves Evidence for Kimberlite and
Deep Cratonic Root of the Mesoarchean Southern Superior Craton.
Abstract, 2011 Goldschmidt Conference, Prague, August 2011.
http://goldschmidt2011.org/abstracts/finalPDFs/1221.pdf
10. Loryn Bruc, Maya Kopylova, Micaela Longo, John Ryder, 2010.
Diamonds in an Archean Greenstone Belt: Diamond Suites in
Unconventional Rocks of Wawa, Northern Ontario, Canada. Geological
Association of Canada - Mineralogical Association of Canada,
Calgary May 2010 Technical Program.
http://www.geocanada2010.ca/program/program-schedule/thursday/pm-4/cratons-kimberlites-and-diamonds.html
11. Smith, E.M., Kopylova, M.G., and J.Ryder. 2011. Fluid
Inclusion Compositions in Archean Fibrous Diamonds from Wawa,
Ontario. Geological Association of Canada - Mineralogical
Association of Canada, OttawaMay 2011 Technical Program, Ottawa,
ON.
http://gac.esd.mun.ca/gac_2011/search_abs/sub_program.asp?sess=98&form=10&abs_no=95
12. Afanas'ev, V.P., Yefimova, E.S., Zinchuk, N.N,, Koptil,
V.I., 2000. Atlas of morphology of diamonds from Russian sources,
Russian Academy of Sciences, Siberian branch, Novosibirsk.
13. Miller, C.E Kopylova, M., Ryder, J.,Origin of diamonds in
Archean diamondiferous conglomerate from Wawa, N. Ontario.
Geological Association of Canada - Mineralogical Association of
Canada, Ottawa May 2011 Technical Program, Ottawa, ON.
http://gac.esd.mun.ca/gac_2011/search_abs/sub_program.asp?sess=98&form=10&abs_no=15
Forward-Looking Statements
This news release contains statements that may constitute
"forward-looking information" or "forward-looking statements"
within the meaning of applicable securities legislation. This
forward-looking information is subject to numerous risks and
uncertainties, certain of which are beyond the control of Dianor
Resources Inc. ("Dianor"). Actual results or achievements may
differ materially from those expressed in, or implied by, this
forward-looking information. No assurance can be given that any
events anticipated by the forward-looking information will
transpire or occur, or if any of them do so, what benefits that
Dianor will derive therefrom. Forward-looking information is based
on the estimates and opinions of Dianor's management at the time
the information is released and Dianor does not undertake any
obligation to update publicly or to revise any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws.
Contacts: Dianor Resources Inc. Mr. John Ryder, P. Geo.
President & CEO 819-825-7090 819-825-7545 (FAX) info@dianor.com
Dianor Resources Inc. Mr. Daniel Duval Chairman of the Board &
CFO 819-825-7090 819-825-7545 (FAX) info@dianor.com
www.dianor.com
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