Diadem Completes Ground Magnetic Survey
on Franklin Diamond Project
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NEWS RELEASE
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FOR
IMMEDIATE RELEASE:
DIADEM COMPLETES GROUND MAGNETIC SURVEY ON FRANKLIN DIAMOND PROJECT
TORONTO, May 14, 2008 – Diadem Resources Ltd. (TSX-V:
“DRL”)
is pleased to announce that it has completed a ground magnetic survey on its
Franklin Diamond Project on the Parry Peninsula in the Canadian Arctic, located
approximately 30 km northwest of the Settlement of Paulatuk in the Inuvialuit
Settlement Region of the Northwest Territories. The location of the Project and
the Company’s claims are shown on previously published maps which may be
viewed on the Diadem website at www.diademresources.com.
The
survey was designed to more precisely locate and define a number of airborne
magnetic anomalies on the ground that Diadem management determined was
necessary prior to initiating a diamond drilling program. Collectively, a
total of 327.7 line km of survey was carried out over 13 individual control
grids overlying 16 separate airborne magnetic anomalies. These anomalies are
part of the 28 exploration targets referred to in earlier news releases and
other disclosure by Diadem.
The
survey was carried out by JVX Ltd of Richmond Hill,
Ontario under the supervision of Tim Sandberg of Taiga Consultants Ltd of Calgary, Alberta
using three GSM-19W walking v7.0 Overhauser magnetometer systems (roving
magnetometers) with an associated GPS board. Two stationary non-GPS base
station GSM v7.0 magnetometers were also used in the survey to measure the
diurnal variation in the earth’s magnetic field within the survey area.
Magnetic data were collected on foot with three instrument operators reading the
“roving” magnetometers.
Preliminary,
unrefined field data suggests that several of the airborne magnetic anomalies
that were surveyed on the ground have magnetic signatures similar to those
recorded by previous ground surveys over known diamond-bearing kimberlite pipes
on the Project. The ground magnetic anomalies are characterized by
well-defined, circular magnetic lows and magnetic high signatures that appear
to be spatially related to major structural features. The magnetic expressions
of the known kimberlite pipes on the Diadem property contrast sharply with the
weakly magnetic carbonate and clastic sedimentary rocks that they have
intruded, enabling the recognition of potential kimberlite pipes with a high
confidence level.
The raw
data collected from the ground magnetic survey is being processed and analyzed
by JVX Ltd. The results of this analysis will be announced when JVX Ltd
has provided Diadem with the final results of the survey. Once such
results are known, Diadem will finalize its drilling program for the Project
which it expects will be carried out later this year, subject to permitting.
The
technical information in this press release has been reviewed and approved by
Thomas Skimming, P.Eng., a Director of Diadem and a Qualified Person as defined
by NI 43-101.
Diadem
is completing its earn-in to a 50/50 joint venture with Darnley Bay Resources
Ltd. (“DBR”). The Company has the right to carry out a
feasibility study for a diamond mine and if it does so its interest will
increase to 75% and that of DBR will decrease to 25%. In 2004, Diadem and
DBR negotiated an agreement with the Inuvialuit Regional Corporation (IRC) for
access to the Project, for the purposes of mineral exploration, development and
operation, and for royalties to be paid upon commercial production. Such
an agreement with the indigenous peoples of the area is an essential ingredient
of any project in the Arctic. The IRC
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 such
eventuality, the dilution will be shared equally between Diadem and DBR.
Management
of Diadem continues to be focused on acquiring production or near-production
mining opportunities in North America,
especially those related to gold and diamonds. This objective is
exemplified by Diadem’s diamond exploration activities in the Franklin Bay
area of the Northwest Territories.
For
further information, please contact:
Paul
A. Carroll, Chairman and CEO
Phone:
416-369-6080
Fax:
416-369-6088
Email:
paul.carroll@diademresources.com
Website:
www.diademresources.com
The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of the information contained in this news release.