Dynamite Resources Ltd.
TSX VENTURE : DNR

Dynamite Resources Ltd.

October 11, 2007 08:39 ET

Dynamite Resources Announces Discovery Hole 89.3 Metres Grading 0.61% Copper & 1.38 Grams Per Tonne Gold at Mike Lake Project, Yukon

Highlights - Substantial gold-copper mineralized intersection in first hole drilled in the Upper Skarn Ridge target. - Mike Lake lies within the prolific Tintina Gold Belt and is 70km northeast of the world famous Klondike Goldfields.

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2007) - Dynamite Resources Ltd ("DNR") ("Dynamite") (TSX VENTURE:DNR) is pleased to announce that substantial gold-copper mineralization has been intersected in the first diamond drill hole at the Upper Skarn Ridge target at the Company's Mike Lake Gold-Copper Project in west-central Yukon. The property is located 25km north of the former Brewery Creek gold mine and is 70km northeast of the world famous Klondike Goldfields.

The Mike Lake property lies within the prolific Tintina Gold Belt, a gold rich mineral district that spans a broad region of Yukon Territory and central Alaska. It hosts intrusive related gold prospects including both producers and advanced development projects. Major regional deposits include the Donlin Creek JV with NovaGold and Barrick, Teck-Cominco's Pogo and Kinross' Fort Knox mine.

The Upper Skarn Ridge single drill hole was sighted to test a bulk tonnage gold-copper target outlined by soil geochemistry located in the center of the property. Results from this hole are presented in the following table:



Table I - Upper Skarn Ridge 2007 Drill Results

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From To Interval Au Ag
(m) (m) (m)(i) Cu % (g/t) (g/t)
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23.16 112.47 89.31 0.61 1.383 13.6
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including
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50.89 100.05 49.16 0.79 2.105 16.0
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52.88 74.19 21.31 0.69 3.572 15.6
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71.53 74.19 2.66 0.64 12.300 14.6
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(i)The core interval is believed to be close to true thickness.


"This is a significant development for Dynamite. Our first hole in the Upper Skarn Ridge can be considered a discovery hole. We will aggressively continue our exploration of this exciting new discovery." states Dynamite Chairman, Stan Bharti.

The 2007 drilling program was designed to test three separate targets within the 63km2 property. In total 1,827m of BTW diamond drilling was completed in nine holes at the three target areas during 2007.

The Upper Skarn Ridge target is marked by a 1,500m by 700m strongly anomalous copper- and gold-in-soil anomaly that is associated with a thick section of isoclinally folded, generally gently south dipping calcareous sediments underlain by argillite. These units have been intruded by the Mike Lake Stock and associated dykes and sills, which has resulted in widespread hornfels and calc-silicate alteration, lesser skarnification and localized sulphide replacement.

"This is the first hole that has tested the mineralization likely responsible for the much larger copper and gold-in-soil geochemical anomaly defining this target. Looking forward, it is great news that this mineralized zone commences at such a shallow depth and hence has the potential for open pit mining. I am very excited about these results." states Exploration Manager, Yanshao Chen, PhD.

Mineralization in drill core is both bedding-parallel and fracture-controlled. It ranges from weakly to heavily disseminated, to semi-massive and massive banded sulphide. Macroscopically, the primary sulphide minerals are medium- to coarse-grained chalcopyrite, pyrrhotite and arsenopyrite. Mineralized fractures exhibit a wide range of possible orientations, whereas the bedding-parallel sulphide-bearing bands are cut nearly perpendicular in drill core and thus the mineralized interval is believed to be close to true thickness.

The two other 2007 drilling programme targets are located in the extreme northern and southern parts of the Mike Lake property to test bulk tonnage copper-gold and high-grade shear controlled gold mineralization, respectively. Eight holes in total were drilled on these two targets with results from these holes pending.

Dynamite can earn a 100% interest in the Mike Lake property, subject to net smelter royalties in an aggregate of 2.5%, 1.5% of which can be purchased for $1.0 million, and of the remaining NSR of 1% is only payable on gold & silver production.

Industry standard QA/QC procedures were employed during the sampling and analytical work. All analyses were completed at ALS Chemex Laboratories in North Vancouver using industry-standard fire assay and ICP techniques. The ALS Chemex Vancouver laboratory carries ISO 9001:2000 registration and is accredited to ISO 17025 by Standards Council of Canada for a number of specific test procedures including fire assay Au by AA, ICP and gravimetric finish, and multi-element ICP and AA assays for Ag, Cu, Pb and Zn.

Work at the Mike Lake property was supervised by Mr. Bill Wengzynowski, P Eng., who is the qualified person for the project as defined by National Instrument 43-101. Mr. Wengzynowski has reviewed the technical content of this news release.

For more information concerning Dynamite Resources Ltd. or the Mike Lake Project please contact David Argyle at (647) 203-8881 or Blair Krueger at (416) 861-5879.

Forward Looking Statements

This press release may contain or refer to forward looking information based on current expectations, including, but not limited to, mineralization projections, future drilling plans, estimates regarding the timing for resource modeling and the preparation of a 43-101 compliant technical report. Forward-looking information is subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Forward-looking information has been presented as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.

To view the Mike Lake Project within Tintina Gold Belt map, click on the following link:

http://www.ccnmatthews.com/docs/DNR110a.pdf

Mike Lake Base Camp is approximately 1.5km to the SSE of the Upper Skarn Ridge Drill Hole site

To view the Mike Lake Base Camp click on the following link:

http://www.ccnmatthews.com/docs/DNR110b.pdf

Upper Skarn Ridge Core Photos are located on www.dynamiteresources.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE.

Contact Information

  • Dynamite Resources Ltd.
    David Argyle
    (647) 203-8881
    or
    Dynamite Resources Ltd.
    Blair Krueger
    (416)-861-5879
    Website: www.dynamiteresources.com