May 5, 2010 (TheNewswire.ca) --
GANDER, NEWFOUNDLAND - May 5, 2010 - Golden Dory Resources Corp. (TSXV:GDR) ("Golden Dory") is pleased to announce that New Valley Drilling has mobilized a diamond drill rig to the Huxter Lane/Brady Project located in Central Newfoundland. A minimum of 5,000 meters of drilling is planned for 2010 with an initial 2,000 meters targeting the Mosquito Hill Deposit and an additional 800 meters targeting the adjacent Reid Porphyry Zone. Golden Dory recently announced a NI 43-101 resource estimate for the Mosquito Hill deposit with an indicated resource of 4.47 million tonnes averaging 0.526 g/t gold for 75,600 ounces gold, and an inferred resource of 32.9 million tonnes averaging 0.461 g/t gold for 488,800 ounces gold at a cutoff of 0.30 g/t gold. To date no economic assessment or scoping study of the Mosquito Hill Deposit has been performed.
Drilling will focus on two aspects of the Mosquito Hill Deposit that were identified during deposit modeling including a possible higher grade corridor, which has very limited drilling, highlighted by historical drill results including HX06-16 (35 meters grading 2.21 g/t gold), and HX-07-24 (1.68 g/t gold over 20.20 meters). Drilling will also focus on testing a large up dip and near surface portion of the Mosquito Hill Deposit that has not been tested by previous drilling nor included in the resource estimate.
Phase 1 of the 2010 diamond drilling program will also include step out drilling at the adjacent Reid Porphyry Zone which lies approximately 1,600 meters northwest of the Mosquito Hill Deposit. Results of the proposed drill program will aid in producing a resource estimate for this zone. Diamond drilling by Golden Dory at the Reid Porphyry Zone late in 2009 returned significant gold mineralized intercepts including: 20.45 meters grading 1.27 g/t gold (incl. 5.75 meters grading 3.89 g/t gold), 52.10 meters grading 0.76 g/t gold (incl. 14.04 meters grading 1.05 g/t gold, and where historical drilling from 2003 returned 41.1 meters grading 1.10 g/t 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 Mosquito Hill Deposit and the Reid Porphyry zone are similar in many respects to the large intrusion hosted gold deposits of the Tintina Belt of Alaska and the Yukon Territory including the Fort Knox deposit which hosts open pit mineable proven and probable reserves of 253 Mt at 0.45 g/t gold for 3.69M oz gold (Kinross Gold Corporation website).
The Huxter Lane Property was acquired in 2009 under an option agreement with Paragon Minerals Corporation (OOTC:PAONF) (TSXV:PGR) (TSX.V-PGR) whereby Golden Dory can earn up to a 60% interest in the property by issuing a total of $50,000 cash, 350,000 shares of Golden Dory and by making exploration expenditures of $2 million over a four year period. Golden Dory can increase its interest to 70% by issuing a further 150,000 shares and funding a bankable feasibility study. The Huxter Lane Property is located in central Newfoundland and is contiguous with Golden Dory's 100% owned Brady Property.
The company also announces the issuance of 1,940,000 incentive stock options exercisable at 14 cents for five years to various directors, employees and consultants.
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.
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