Diamond Fields Drills Nickel-copper Sulfide and Titanium Mineralization in Norway

Diamond Fields International Ltd. has released results from the initial drill program at the Ogna nickel-copper project in southwestern Norway. A total of 1,280.7 metres of drilling were completed between May 25, and June 17, 2004. Drilling was focused on two geophysical targets at Bjorndalsnipa and Gulldragsvatn.

Bjorndalsnipa — Ni/Cu geophysical target

Eight drill holes totalling 896 metres targeted nickel and copper mineralization related to late-stage enrichment of an anorthosite host. The drilling encountered massive sulphide veins and stringers of disseminated sulphides with grades including nickel values up to 1.31 per cent and copper values up to 0.85 per cent. Drill holes 2 to 7 were all collared at the same site and drilled in a fan to define the extent of the mineralization in an area where no obvious structural controls could be seen at surface.

Results for selected elements are as follows (true thickness is not known at this time):

Drill From-To Width Ni Cu

hole (m) (m) % %

BJN02 27.0-29.0 2.0 1.23 0.57

BJN02 29.0-30.0 1.0 0.81 0.85

BJN02 31.0-33.0 2.0 1.21 0.34

BJN02 33.0-35.0 2.0 0.42 0.30

BJN02 35.0-37.2 2.2 0.70 0.27

BJN02 46.2-47.1 0.9 1.04 0.22

BJN03 43.5-43.9 0.4 0.80 0.42

BJN05 21.4-22.1 0.7 1.21 0.22

BJN05 63.2-64.2 1.0 1.06 0.44

BJN05 75.4-76.4 1.0 1.30 0.22

BJN06 20.5-21.0 0.5 1.31 0.20

BJN06 23.5-24.0 0.5 1.19 0.23

BJN06 25.9-26.4 0.5 1.07 0.16

BJN06 40.5-41.4 0.9 0.86 0.49

BJN07 24.0-25.9 1.9 1.22 0.36

BJN07 29.1-30.4 1.3 1.30 0.31

Drill Width Co Fe

hole (m) % %

BJN02 2.0 0.16 52.79

BJN02 1.0 0.12 36.07

BJN02 2.0 0.13 51.82

BJN02 2.0 0.05 18.48

BJN02 2.2 0.08 29.98

BJN02 0.9 0.12 44.11

BJN03 0.8 0.11 36.55

BJN05 0.7 0.16 52.89

BJN05 1.0 0.18 50.54

BJN05 1.0 0.14 56.35

BJN06 0.5 0.15 56.39

BJN06 0.5 0.14 51.54

BJN06 0.5 0.12 46.96

BJN06 0.9 0.14 40.68

BJN07 1.9 0.14 52.78

BJN07 1.3 0.14 54.75

Interpretation of the drill intersections suggests a semi-cylindrical body of sulphide mineralization, about 50 metres long and 40 metres wide, dipping steeply to the south was intersected similar in extent to the Homse massive sulphide deposit located 900 metres to the west. Although the drill-identified zone at Bjorndalsnipa does not appear at this time to represent an economic ore deposit, the style and extent of mineralization in these two cases are interpreted to represent a feeder system of sulphide liquids suggesting the possibility of a larger nickel-copper enriched sulphide body at depth. The two mineralized pods appear to be related by their locations adjacent to a through going fault. A ground geophysical program is planned over the area to search for deeper conductors that will help support this theory and generate targets for further drilling.

Gulldragsvatn

In the Gulldragsvatn area, 384.5 metres of drilling targeted nickel, copper and titanium mineralization related to an extensive mineralized zone in anorthosite and norite. Two 45-degree-angled drill holes on a southeast bearing returned core lengths of 53 metres and 90 metres, respectively, of anorthosite and norite breccia with massive ilmenite matrix. The holes are 150 metres apart and targeted on geophysical anomalies. Intersections of massive ilmenite bands in the core varied from centimetres thick to four metres thick in HGV-1.

Results for selected metal oxides are as follows (true thickness is not known at this time):

DHID From-To Width TiO Fe(2)O(3) MnO

(m) (m) % % %

HGV1 100-108 8 8.97 14.70 0.09

HGV1 108-114 6 25.89 34.00 0.17

HGV1 114-128 14 9.83 14.00 0.08

HGV1 128-134 6 12.89 18.47 0.11

HGV1 134-140 6 8.04 12.10 0.08

HGV1 Ttl 52 14.91 20.92 0.12

DHID Width V(2)O(5) Cr(2)O(3)

(m) % %

HGV1 8 0.079 0.021

HGV1 6 0.200 0.037

HGV1 14 0.083 0.022

HGV1 6 0.112 0.026

HGV1 6 0.070 0.017

HGV1 52 0.120 0.030

HGV2 has a similar style of mineralization. Although disseminated and stringer ilmenite were seen for the entire length of the hole, a zone of massive ilmenite and anorthosite breccia extended from 126 metres to 144 metres. These intersections are interpreted to represent near true thickness of the ilmenite mineralization which is dipping 45 degrees to 50 degrees to the NW. The mineralized zone and coincident HEM anomalies that define it extend over 1,000 metres along strike. Surface structure indicates that further strike length is possible.

Results for selected metal oxides are as follows (true thickness is not known at this time):

DHID From-To Width TiO Fe(2)O(3) MnO

(m) (m) % % %

HGV2 60- 66 6 8.67 14.90 20.92

HGV2 66- 74 8 13.91 21.00 0.12

HGV2 74- 75.5 1.5 13.93 20.2 0.11

HGV2 75.5-79.5 4 26.53 36.45 0.19

HGV2 79.5-81 1.5 15.44 22.5 0.14

HGV2 81- 89 8 12.52 20.53 0.12

HGV2 89- 91 2 0.19 3 0.03

HGV2 91- 97 6 10.79 16.37 0.10

HGV2 97- 101 4 27.23 37.90 0.20

HGV2 101-104 3 5.57 9.2 0.06

HGV2 104-112 8 20.83 30.10 0.16

HGV2 112-126 14 7.42 12.39 0.08

HGV2 126-144 18 19.18 28.44 0.16

HGV2 144-150 6 11.50 18.00 0.12

HGV2 Ttl 90 14.2 21.43 0.12

DHID Width V(2)O(5) Cr(2)O(3)

(m) % %

HGV2 6 0.116 0.122

HGV2 8 0.141 0.036

HGV2 1.5 0.141 0.035

HGV2 4 0.266 0.060

HGV2 1.5 0.157 0.041

HGV2 8 0.122 0.029

HGV2 2 0.03 less than 0.005

0.005

HGV2 6 0.111 0.031

HGV2 4 0.272 0.067

HGV2 3 0.056 0.013

HGV2 8 0.211 0.048

HGV2 14 0.084 0.027

HGV2 18 0.20 0.049

HGV2 6 0.118 0.027

HGV2 90 0.15 0.04

Gulldragsvatn drilling has suggested ilmenite mineralization warranting further investigation. Future work will include assessing metallurgical potential before attempting to expand the deposit. Ilmenite is one of the main ores of titanium, which is primarily used as a pigment for paint, paper, plastic and other materials. Other uses for titanium are for manufacturing alloys, carbides and chemicals.

Crushing and geochemical analysis of the core were carried out by OMAC Laboratories, Loughrea, county Gallway, Ireland (www.omaclabs.com). The Bjorndalsnipa samples were processed using ICP methods while the Gulldragsvatn samples were processed using a potassium-polysulphate-fusion method with ICP finish specific for ilmenite compositions. Randal Cullen, PGeol, chief geologist for Diamond Fields International Ltd., is a qualified person as defined by National Instrument 43-101, and is responsible for program design and quality control of exploration undertaken by Diamond Fields.

WARNING: The company relies upon litigation protection for “forward-looking” statements.

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