Dynamite Resources Ltd.

Dynamite Resources Ltd.

October 04, 2007 09:18 ET

Dynamite Resources Ltd.: First Drill Hole Confirms Massive Altered System at Lake Torrens IOCGU Project

Highlights - Eight drill holes were completed for a total of 7,586 metres at the Lake Torrens IOCGU Project, which is located immediately to the north, east and west of BHP Billiton Limited's world class Olympic Dam Mine in South Australia. - The first hole assay results include 571.9 metres at 0.09% copper, including 130.3 metres at 0.1% copper. The hole terminated in 46.2 metres at 0.16% copper. - Final assay results from initial drill programme expected by mid November. - Follow up and new target drilling to commence in Q1 2008.

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Dynamite Resources Ltd ("DNR") ("Dynamite") (TSX VENTURE:DNR) is pleased to announce that drilling on the Lake Torrens iron-oxide copper gold uranium ("IOCGU") project in South Australia has been completed and assay results have been received for the first drill hole (TI009) at the Titan prospect.

Dynamite can earn up to a 51% interest in the Lake Torrens project from WCP Resources (ASX:WCP) through a combination of exploration expenditures and a fixed call option.

"The drill results from TI009 are very encouraging and we consider this a path-finder hole. The results from this hole are significant as we are only 30km from the centre of BHP's Olympic Dam Mine. Our next drilling programme will search for higher grade zones within this large anomaly at Titan," stated Stan Bharti, DNR's Chairman.

The assay results from TI009 showed 571.9m of consistently mineralized IOCG-style altered basement rocks and are summarized in Table 1 below.

The entire basement section of the TI009 drill core is consistently mineralized with 571.9 metres averaging 0.09% copper and trace amounts of gold from 610.45 metres depth. This zone includes better mineralized intercepts of 130.3 metres at 0.1% copper from 831.0 metres depth at a slightly higher cut-off (0.075% copper) and the hole was terminated at 1,182.3 metres depth in a 46.2 metre zone of mineralisation grading 0.16% copper at the cut-off.

The intensely hematite-magnetite-chlorite altered basement rocks comprise meta-arkoses, syenitoids and quartzo-feldspathic gneisses, crosscut by magnetite-pyrite-calcite veins with sporadic chalcopyrite. Geological assessment is underway to determine the setting of the mineralisation encountered at Titan within the spectrum of deposit types that typify IOCG systems.

To view a picture of the (Section of core from TI009 - No1), please visit the following link: http://www.ccnmatthews.com/docs/dynamitepic1.pdf

TI009 is located some 220 metres WNW from BD1 drilled by WMC in 1976 and which returned 334 metres at 0.1% copper from similar basement rocks

To view a picture of the (Section of core from TI009 - No2), please visit the following link: http://www.ccnmatthews.com/docs/dynamitepic2.pdf

Table 1. Summary of assay results from one-third core split samples for diamond drill hole TI009

(azimuth Depth Depth
Easting Northing RL /dip) from to Interval Copper Gold Uranium
m m M degrees m m m % g/t g/t
Mineralised intercept greater than 0.000% copper cut-off
676998 6663018 100 360/-90 610.45 1,182.3 571.9 0.09 0.01 5.20
Mineralised intercepts greater than 0.075% copper cut-off
641.0 668.0 27.0 0.08 0.01 4.55
702.0 774.4 72.4 0.10 0.02 7.49
784.5 820.0 35.5 0.09 0.01 5.18
831.0 961.3 130.3 0.10 0.01 5.01
982.0 1,020.0 38.0 0.13 0.01 3.93
1,046.0 1,059.3 13.3 0.08 0.01 2.16
1,070.0 1,119.5 49.5 0.08 0.01 5.14
1,131.6 1,182.3 50.7 0.16 0.02 5.48
Mineralised intercepts greater than 0.100% copper cut-off
716.0 745.8 29.8 0.11 0.02 9.67
887.0 957.7 70.7 0.10 0.02 4.41
982.0 1,004.0 22.0 0.18 0.01 4.08
1,136.1 1,182.3 46.2 0.16 0.02 5.47
Mineralised intercepts greater than 0.125% copper cut-off
982.0 992.0 10.0 0.30 0.02 4.88
1,144.0 1,171.0 27.0 0.19 0.02 5.65
Note: (1) Intercepts quoted below have been composited for each cut off
over a minimum of 10 metres and included dilution of greater than, or
equal to, 0.001% copper grades.

(2) Intervals set out in this release are downhole lengths and not true
widths. Holes were drilled vertically and no attempt has been made to
connect the core piece by piece so as to determine the angular
relationships between the various populations of cross-cutting mineralized
veins. Dynamite can not reliably state the relationship of these downhole
lengths to true width. Management believes that it is reasonable to assume
that the mineralized system is steeply dipping as it has affinities with
the systems at Olympic Dam and Prominent Hill.

Titan - 6 holes drilled

Six holes have been drilled at Titan, 30 kilometres north of Olympic Dam, for 5,962 metres, with the deepest vertical hole at 1,182 metres. The drill holes were designed to test a large coincident gravity and magnetic anomaly (approximately 10 square kilometre surface area) within basement rocks from approximately 600 metres depth and which are prospective for IOCGU mineralization similar to that at nearby Olympic Dam and Prominent Hill.

Marathon South - 2 holes drilled

Drilling of two holes at Marathon South, 25 kilometres northeast of Olympic Dam, has also been completed for a total of 1,624 metres drilled. These two holes targeted the gravity feature proximal to sedimentary breccias intersected by earlier drilling completed by Tasman, and which contain zones of iron-oxide altered matrix.

Sampling and assaying of Titan and Marathon South drill core is in progress with assay results for samples from TI009 received from the laboratory on the 28 September 2007.

All samples are expected to be submitted to the laboratory by early October and the assays results should be received by mid-November.

The Company's intention is to release the remaining results of this drilling campaign after all of the relevant core has been geologically logged, sampled and assayed. This process will be implemented in a manner so as to comply with the Company's ongoing continuous disclosure obligations.

Dynamite has commenced planning the next campaign of drilling at Lake Torrens, which is expected to commence in the first quarter of 2008. This drilling will be located within an area defined by Geoscience Australia as having the highest potential for IOCG mineralization. Further drilling will be aided by geochemical and alteration vectors interpreted from this drilling programme. Target generation and prioritisation will be based on an integrated reinterpretation of the project areas geology, structure and geophysics utilising 3-D modelling packages. Modelling will be further aided by an infill gravity survey scheduled for November 2007.

Exploration Expenditure and Farm-in Arrangements

Dynamite can earn up to a 51% interest in the Lake Torrens Project from WCP Resources. WCP Resources has a joint venture with Tasman Resources Limited on the Lake Torrens Project. WCP Resources has the right to earn 65% of the Lake Torrens Project, by incurring expenditures of Australian Dollars ('AUD')6.5 million. Dynamite has agreed to fund the AUD6.5 million expenditure over a 5 year period, in exchange for 50% of WCP's interest in the Lake Torrens Project. Dynamite has a call option to increase its overall equity in the Lake Torrens Project to 51% by paying a pre-determined amount to WCP Resources.

Quality Control

A diligent QA/QC protocol has been used for all aspects of the analytical procedures at the project. Core samples are sawn and two-thirds of the core is restored to the core box for future reference and one-third of the core is sent for analysis. Samples are sorted and dried, with primary preparation involving crushing of the whole sample and pulverizing the sample in a vibrating disc pulverizer. Samples have been processed using a robotic sample preparation system. Samples have been analyzed at Ultra Trace Analytical Laboratories, in Perth, Australia, using fire assay processes. ICP Optical Emission Spectometry and ICP Mass Spectrometry techniques have been employed. The lab inserted standards and did repeat assays on a frequent basis.

The quality control and all aspects of the exploration program are supervised by Mr Gavin Daneel, who is a Member of The Australasian Institute of Mining and Metallurgy and qualifies as a qualified person under National Instrument 43-101. Mr Daneel, who is a full-time employee of WCP, has reviewed the technical and scientific information in this press release.

Cautionary Note Regarding Forward-Looking Information This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to statements regarding exploration prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view a map of the Olympic Dam project, please visit the following link: http://www.ccnmatthews.com/docs/dynamitemap.pdf

Contact Information

  • Dynamite Resources Ltd.
    Stan Bharti
    (416) 861-1685