Jun. 23, 2010 (TheNewswire.ca) --
GANDER, NEWFOUNDLAND - June 23, 2010 - Golden Dory Resources Corp. (TSXV:GDR)("Golden Dory") is pleased to announce results from a portion of the recently completed Phase 1, 3016 meter diamond drill program at the Huxter Lane Option in central Newfoundland. Highlights include:
-Deposit expanded in the up dip and down dip directions and remains open
-All holes encountered mineralization of higher grade than the initial resource estimate
To date, assays have been received for the first seven holes of 14 holes completed at Mosquito Hill, part of the Huxter Lane property under option from Paragon Minerals Corporation (OOTC:PAONF) (TSXV:PGR) (TSX.V-PGR).
HX-10-47 From (m) To (m) Length (m*) g/t Au Grams x Meters Dip -55o 77.00 145.00 68.00 0.78 53.04 incl. 78.00 108.00 30.00 1.02 30.60 and 83.00 87.00 4.00 2.18 8.72 HX-10-48 97.41 128.00 30.59 0.64 19.58 Dip -45o incl. 121.87 128.00 6.13 1.16 7.11 HX-10-49 92.00 124.00 32.00 0.54 17.28 Dip -45o Incl. 118.00 124.00 6.00 1.03 6.18 HX-10-50 68.58 80.00 11.42 0.56 6.39 Dip -45o Incl. 75.32 80.00 4.68 1.02 4.77 91.00 201.00 110.00 0.50 55.00 Incl. 91.00 101.00 10.00 1.52 15.20 and 120.00 130.87 10.87 1.13 12.28 HX-10-51 34.75 42.47 7.72 1.16 8.96 Dip -45o Incl. 39.00 42.00 3.00 2.54 7.62 HX-10-52 72.50 155.00 82.50 0.56 46.20 Dip -45o Incl. 102.00 148.00 46.00 0.70 32.20 and 102.00 120.00 18.00 1.01 18.18 HX-10-53 54.30 65.20 10.90 0.60 6.54 Dip -45o and 149.10 209.70 60.60 0.74 44.84 Incl. 165.50 191.35 25.85 1.05 27.14
*Reported widths are believed to represent at least 95% of true widths.
The Mosquito Hill deposit has NI 43-101 compliant resources (prepared by Giroux Consultants) 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. Over 90% of the resource estimate occurs at depths shallower than 200 metres below surface. The mineralized intrusion is exposed along its northern edge and dips gently to the southwest and remains open for expansion along strike and dip. The Huxter Lane project has excellent road access and is located near existing infrastructure including power and skilled labour. To date no economic assessment or scoping study of the Mosquito Hill Deposit has been performed. Golden Dory is earning up to a 70% interest in the Huxter Lane property from Paragon Minerals Corporation (see February 25, 2009 News Release).
Golden Dory's drill program at Mosquito Hill focused on adding tonnage in both the up dip and down dip directions, increasing the overall average grades, and converting inferred ounces to indicated or higher categories. Kevin Keats, President and CEO states, "We are very pleased with the results thus far from our 2010 program. The drilling continues to confirm a very large system at Huxter Lane with good grades over significant thicknesses. We are delivering on what we set out to accomplish with the first phase of drilling, and the decision to drill orthogonal to the direction most of the holes have been drilled to date is paying off. We decided to test the idea that a northwest trending structure was the control behind higher grades. We have been rewarded with consistently higher grades thus far in this phase."
The results to date appear to bear this out as more quartz veining and associated sulphide mineralization signifying increased alteration and fluid flow was intersected in the holes drilled in an 070-250 degree orientation rather than the 340 degree orientation that most earlier holes were drilled on. Diamond drill holes completed outside of the current resource will be discussed in a subsequent news release once all results have been received. A revised resource estimate will be produced once the full 2010 program has been completed which will include additional diamond drilling.
The 2010 program will also include a series of holes in the adjacent and 100% owned Brady Property which hosts the Reid Porphyry Zone which has significant intrusion hosted gold mineralization similar in style to Mosquito Hill. Both projects are targeting bulk tonnage, open pit mineable intrusion associated gold deposits similar to the Fort Knox deposit in Alaska which has 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). In 2003, previous operators at Brady reported strong drill intercepts including 41.1 metres grading 1.1 grams per tonne gold from the Reid Porphyry Zone. The proximity and similarity of the two zones (1600 metres apart) as well as additional untested coincidental geochemical and geophysical targets suggests the area could host a cluster of near surface zones of gold mineralization which collectively could prove very significant.
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.
Assaying for this program was carried out by Accurassay Laboratories of Thunder Bay, Ontario. NQ drill core was sawn in half, and placed in sealed bags and delivered by Golden Dory personnel to the Accurassay prep facility in Gambo, Newfoundland. The core was then assayed by Fire Assay methods with AA finish. Industry certified standards and blanks were also inserted into the sample stream as part of QA/QC.
About Golden Dory
Golden Dory is focused on gold exploration in Nevada, USA, and gold and uranium exploration in the province of Newfoundland and Labrador, Canada. The company recently announced an option agreement with Reno, Nevada based AuEx Ventures (TSX:XAU) , whereby Golden Dory can acquire a 70% interest in the Pequop South property in Elko County, Nevada. Golden Dory has 100% interests in the Burin intrusion hosted uranium property, the Little Rattling Brook gold property, and the Brady intrusion hosted gold property in central Newfoundland. Golden Dory is earning a 70% interest in the Huxter Lane intrusion hosted gold property and also has a 50% interest in the Sims Ridge Athabasca type uranium property in western Labrador. Golden Dory 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 is seeking partners to jointly explore the Burin uranium property, Little Rattling Brook and Brady 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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