TORONTO, ONTARIO -- 07/26/07 --
Diadem Resources Ltd. (TSX VENTURE: DRL) is pleased to announce that it has initiated an exploration program on its Franklin Diamond Project located on the Parry Peninsula approximately 30 kilometres northwest of the hamlet of Paulatuk within the Inuvialuit Settlement Region of the Northwest Territories.
The program will consist essentially of 5,000 metres of diamond drilling at a cost (including related ground gradiometer magnetic surveys and environmental impact studies) of up to $2.5 million to evaluate 10 known kimberlite pipes, some of which are known to be diamond-bearing, and 18 high priority ground magnetic anomalies with geophysical signatures and indicator-mineral geochemical anomalies similar to those recorded over known kimberlite pipes on the property. Prior to the commencement of the drill program, the detailed ground gradiometer magnetic surveys will be carried out by JVX Ltd of Richmond Hill, Ontario to assist in determining the optimum location to accurately test each of the proposed drill targets.
Applications for all the required permits and approvals from the Inuvialuit Land Administration, Environmental Impact Screening Committee, Northwest Territories Water Board and the NWT Workman's Compensation Board are being processed and communications with organizations and individuals native to the project area are ongoing. A number of Inuvialuit contractors and subcontractors will be providing a variety of services to Diadem over the duration of the exploration program which is expected to extend into 2008. The administration of the permitting and drill program is being carried out on behalf of Diadem by Taiga Consultants Ltd of Calgary, Alberta.
In order to minimize costs, Diadem has contracted Northern Transport for the transport of the bulk supplies and consumables including diesel and helicopter fuel, calcium chloride and propane that will be required in the proposed drill program by barge from Hay River, NWT via the MacKenzie River to Paulatuk. These supplies are in transit and are expected to arrive in Paulatuk within the next couple of weeks.
The Franklin Diamond Project is a joint venture between Diadem and Darnley Bay Resources Ltd. Diadem is the operator of the joint venture. Diadem and Darnley Bay have negotiated an agreement with the Inuvialuit Regional Corporation for access, for the purposes of mineral exploration and development, to those areas which Diadem believes to be prospective for a commercial diamond occurrence. To date, Diadem has expended over $2.1 million on exploration and plans to spend an additional $1.0 million by December 31, 2007 to earn a 50% participating interest in the project. Once Diadem has earned its 50% interest, Darnley Bay is required to contribute its proportionate share of all ongoing costs, expected to begin later this year. The Inuvialuit Development Corporation has the right to back into the project for a participating 10% working interest when a decision is made to place a diamond mine into production. In this eventuality, the dilution will be shared equally between Diadem and Darnley Bay. If a decision is made to carry out a feasibility study, Diadem has the right to fund the study and if the property is advanced to commercial production, Diadem's interest will increase to 75% and Darnley Bay's interest will decrease to 25%.
In a press release dated October 5, 2006 Diadem announced the results of electron microprobe analyses on kimberlite indicator minerals recovered from 223 samples of glacial till collected largely from the area where the proposed drill program will be carried out. The chemical composition of eleven of the pyrope garnet grains that were analyzed fell within the G10 pyrope domain with the bulk of the remainder falling within the G9 domain. The chemical composition of over 95% of the chrome diopside grains fell within the diamond inclusion field. The results of the analyses on the sixty-six grains of ilmenite indicated a reducing trend suggesting a strong indication of diamond preservation. Of the 85 grains of chromite analyzed, chemically, one fell within the diamond inclusion field and, although the others plotted outside the field, they exhibited a strong kimberlitic trend. Based on these results, the management of Diadem is very encouraged that these results suggest a high probability that many of the kimberlite indicator minerals that were collected originated from diamond-bearing kimberlites.
This news release has been prepared by Thomas Skimming, P.Eng. who is Diadem's Qualified Person for such purpose under NI 43-101.
Management of Diadem continues to be focused on acquiring production or near-production mining opportunities in North America, especially those related to gold, as well as its diamond exploration activities in the Franklin Bay area of the Northwest Territories.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained in this news release.
Contacts:
Diadem Resources Ltd.
Paul A. Carroll
Chairman and CEO
(416) 369-7217
(416) 369-6088 (FAX)
Email: paul.carroll@diademresources.com
Website: www.diademresources.com
