Mar. 4, 2010 (TheNewswire.ca) --
GANDER, NEWFOUNDLAND - March 4, 2010 - Golden Dory Resources Corp. (TSXV:GDR)("Golden Dory") - (GDR - TSX.V) is pleased to announce the results of the first NI 43-101 compliant resource estimate on the Huxter Lane Option, part of the Company's Huxter Lane -Brady Project in central Newfoundland. The Huxter Lane property is under an option agreement with Paragon Minerals Corporation (OOTC:PAONF) (TSXV:PGR) (TSX.V-PGR) whereby Golden Dory can earn up to a 70% interest in the property.
The resource estimate, prepared by Giroux Consultants, concludes that the Mosquito Hill zone contains an indicated resource of 4.47 million tonnes averaging 0.526 g/t Au for 75,600 ounces gold, and an inferred resource of 32.9 million tonnes averaging 0.461 g/t Au for 488,800 ounces gold at a cutoff of 0.30 grams per tonne gold. To date no economic assessment or scoping study of the Mosquito Hill Zone has been performed, therefore a range of cutoff values have been provided.
- .Resources estimated at a 0.30g/t Au cutoff: 75,600 ounces indicated and 488,800 ounces inferred
- .Deposit remains open to depth and along strike with near surface open pit potential
- .Deposit modeling identifies high grade corridor in center of deposit with little previous drilling
The Mosquito Hill Deposit is a large, potentially open pit mineable, intrusion hosted system that has been tested by only 46 holes over a strike length of 900 metres, a width of 500 metres, with over 90% of the current resource lying at depths shallower than 200 meters. The deposit is exposed along its northern edge, dips very gently to the southwest at about 10 degrees (nearly flat lying) and at the western limits of the current resource, the deposit is nearly 500 meters in width and wide open for expansion. The property has road access and is proximal to key infrastructure, power and labour.
Huxter Lane - Mosquito Hill Zone - Indicated Resource Within The Mineralized Solid
Au Cut-off(g/t Au) Tonnes > Cut-off Grade > Cut-off(g/t Au) Contained Ounces Au 0.10 7,880,000 0.393 99,600 0.20 6,800,000 0.431 94,200 0.30 4,470,000 0.526 75,600 0.40 2,470,000 0.670 53,200
Huxter Lane - Mosquito Hill Zone - Inferred Resource Within The Mineralized Solid
Au Cut-off(g/t Au) Tonnes > Cut-off Grade > Cut-off(g/t Au) Contained Ounces Au 0.10 47,860,000 0.392 603,200 0.20 44,890,000 0.408 589,000 0.30 32,980,000 0.461 488,800 0.40 18,210,000 0.553 323,800
Kevin Keats, President and CEO of Golden Dory states; "This initial resource estimate firmly establishes Mosquito Hill as a significant gold deposit with excellent potential to add additional resources along strike and down dip. The deposit remains open and a higher grade core zone in the center is virtually untested, including intercepts of 35 metres grading 2.21 grams per tonne gold. The reported estimates do not include any potential contribution from the adjoining 100% owned Brady Property which hosts the Reid Porphyry Zone. Our focus will be to continue to drill and expand the resources while testing other high priority targets in proximity to the Reid Porphyry and Mosquito Hill Zones. We will also move forward with preliminary metallurgical testing, and continue with baseline water quality sampling".
The Mosquito Hill and adjacent Reid Porphyry zones share characteristics similar to the intrusion hosted Fort Knox gold deposit in Alaska which hosts bulk tonnage, open pit mineable proven and probable reserves of 252 million tonnes averaging 0.47 grams per tonne gold or 3.80 million ounces of gold (Kinross Gold website). Drilling at the Reid Porphyry zone has returned several significant intercepts including 41.1 metres grading 1.1 grams per tonne gold, 20.45 metres grading 1.27 grams per tonne gold, and 101 metres grading 0.54 grams per tonne gold. The Reid Porphyry zone remains open and has potential to be a significant component of the combined project. The Huxter Lane - Brady property lies within an extensive structural zone at least 100 kilometres in length and host to numerous gold occurrences and prospects as well as the producing Beaver Brook antimony mine.
The resource estimate was produced from a database consisting of 46 diamond drill holes (NQ size core) totaling 7,289 metres from which 3,777 samples were assayed for gold. Assays within the mineralized solid were capped at 4.5 grams per tonne gold and uniform down hole composites measuring 5 metres in length were created to honour the boundaries of the solid. A block model was created with blocks measuring 20 X 20 X 5 metres that were superimposed over the geologic solid. A specific gravity of 2.78 was applied to all blocks, which was measured by the weight in air / weight in water method. Gold grades were interpolated into the block model by ordinary kriging. The resource estimates can be classified as indicated and inferred mineral resources (OOTC:MALRF) based on definitions from National Instrument 43-101and from CIM 2005. Gary H. Giroux, P.Eng. MASc., and a Qualified Person as defined by NI 43-101, is responsible for the mineral resource estimate. The full report will be posted on SEDAR within the required 45 day period.
Golden Dory would like to thank the Government of Newfoundland and Labrador for its support of this project through a financial contribution from the Junior Exploration Assistance program.
About Golden Dory
Golden Dory is primarily focused on gold exploration at its flagship property, the Huxter Lane-Brady Project in Newfoundland & Labrador, Canada; and on the Pequop South property in the state of Nevada, USA, where the company is currently earning a 70% interest in Pequop South from Reno based AuEx Ventures Inc. (TSX:XAU) The Company has signed agreements to acquire 100% interests (subject to a 2% NSR) in the Root Lake lithium-rare metals property, and the Jackpot lithium properties in northern Ontario. Golden Dory has 100% interests in the Burin intrusion hosted uranium property and the Little Rattling Brook, Aztec and Lamaline gold properties, all in Newfoundland, and a 50% interest in the Sims Ridge Athabasca type uranium property in western Labrador. Golden Dory is seeking partners to jointly explore the Burin uranium property, Little Rattling Brook and Aztec gold properties, and the Root Lake and Jackpot lithium properties.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101.
For further information contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Golden Dory will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory. (Not for dissemination in the United States of America)
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