Mar. 25, 2010 (TheNewswire.ca) --
GANDER, NEWFOUNDLAND - March 25, 2010 - Golden Dory Resources Corp. (TSXV:GDR) ("Golden Dory" TSX.V-GDR) is pleased to announce that it expects to begin a minimum 2500 metre drill program at the Huxter Lane/Brady project by late April 2010, as part of a planned 5000 metre Phase 2 program. Mobilization is expected to start in about 4 to 6 weeks or as soon as road conditions will allow access to the property. The program will target additional resources on the Mosquito Hill Deposit, and to complete sufficient drilling on the adjacent Brady Property to allow a first resource estimate on the Reid Porphyry Zone. The program will focus on expanding on the recently reported NI 43-101 compliant resources at Mosquito Hill which include 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 Deposit has been performed.
Mosquito Hill is a large, potentially open pit mineable, intrusion hosted gold deposit that has been tested by only 46 holes over a strike length of 900 metres, a width of 500 metres, and with over 90% of the current resource lying at depths shallower than 200 metres. 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 metres in width and wide open for expansion. The property has road access and is proximal to key infrastructure, power and labour. The deposit is similar in several respects to the Fort Knox deposit in Alaska which has proven and probable reserves of 252 million tonnes averaging 0.47 grams per tonne gold (3.8 million ounces of gold - Kinross Gold (TSX:K''C) (TSX:K''B) (OOTC:KNRSF) (NYSE:KGC) (TSX:K'U) (TSX:K) website).
The Phase 2 program will address the following priority areas designed to increase the overall size and grade of the Mosquito Hill Deposit. The program will test; a) the up dip and down dip components, b) the strike extension, and c) strategic holes in the keel of the deposit targeting open ended thicker and higher grade intercepts. Additional drilling will be planned subsequent to incorporation of the new holes into the deposit model.
The program will also address classifying potential resources at the adjacent Reid Porphyry Zone, located 1600 metres northwest of Mosquito Hill, and where drilling by Golden Dory late in 2009 returned significant gold mineralized intercepts including: 20.45 metres grading 1.27 grams per tonne gold (incl. 5.75 metres grading 3.89 grams per tonne gold), 52.10 metres grading 0.76 grams per tonne gold (incl. 14.04 metres grading 1.05 grams per tonne gold, and where historical drilling from 2003 returned 41.1 metres grading 1.10 grams per tonne gold. The Reid Porphyry Zone is exposed at surface, dips gently to the south and east and remains open to depth and along strike.
The Huxter Lane property was acquired in February 2009, 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 (see February 26, 2009 News Release). The property is contiguous with Golden Dory's 100% owned Brady Property which hosts the Reid Porphyry gold zone. The geological similarity and proximity of the two zones in addition to the high number of untested coincidental geophysical and geochemical anomalies, strongly suggests the area could host a cluster of gold enriched porphyritic intrusions which individually or collectively could prove very significant.
Kevin Keats, President and CEO of Golden Dory states; "We are anxious to restart drilling at Mosquito Hill and we feel confident that this and subsequent programs will build on the ounces currently defined. Golden Dory has made great strides in the past 6 months and we want to continue to deliver positive news stories to our shareholders by moving our flagship project forward."
About Golden Dory
Golden Dory is primarily focused on gold exploration in Newfoundland & Labrador, Canada, and in the state of Nevada, USA. The Company has recently signed Letters of Intent to acquire 100% interests (subject to a 2% NSR) in the Root Lake lithium-rare metals property, and the Jackpot lithium property, both 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.
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.
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