New Dimension Resources Ltd.

New Dimension Resources Ltd.

May 06, 2010 08:00 ET

New Dimension Obtains Gold Values at Cenepa Gold Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2010) - New Dimension Resources Ltd. (TSX VENTURE:NDR) (the "Company" or "New Dimension") is pleased to report that sampling by Minera NDR Peru ("NDR Peru") during an initial reconnaissance program of the Cenepa property has returned anomalous gold values from stream sediment samples. The Cenepa gold property, located within the Cordillera del Condor mineral belt in northern Peru and adjacent to the Kinross Gold Corp. ("Kinross") Condor Project that encompasses the Fruta del Norte gold deposit in Ecuador, covers a very attractive geologic terrain which the Company believes is highly permissive for the discovery of precious metal mineralization. (To view the map accompanying this release please click on the following link:

"I am extremely pleased by these positive results from our first program at Cenepa," said Fred Hewett, President & CEO of New Dimension. "A great deal of work needs to be done to evaluate the potential of the property, but these results are a promising first step in a very exciting geological belt."

Stream Sediment and Rock Chip Sampling

A geological reconnaissance team consisting of two geologists and five local prospectors visited the project in late March and collected 12 stream sediment and three rock samples to test for evidence of mineralization. The samples were collected along four principle drainages found within the southeastern portion of the Cenepa concessions. 

The results from the stream sediment samples outline a moderate gold anomaly that could suggest a possible east-west orientation to potential mineralization through this portion of the Cenepa concessions. Seven of the samples returned values from 14 – 19 ppb gold with three samples greater than 35 ppb gold (CNS-5, 6 and 11) reporting values ranging from 37 – 59 ppb gold. The strongest anomalous values were obtained from two parallel drainages (#3 and #4) spaced approximately 1 kilometre apart. 

Sample No. Sample Type Drainage No. Gold (ppb)
CNS-01 stream sediment 2 19
CNS-02 stream sediment 2 16
CNS-03 stream sediment 1 14
CNS-04 stream sediment 1 15
CNS-05 stream sediment 3 43
CNS-06 stream sediment 3 37
CNS-07 stream sediment 3 19
CNS-08 stream sediment 3 18
CNS-09 stream sediment 4 9
CNS-10 stream sediment 4 5
CNS-11 stream sediment 4 59
CNS-12 stream sediment 4 14

In drainage #3 the stronger gold value is upstream indicating a possible source of the gold anomaly at higher elevations. However, the highest gold value of the complete sample set (59 ppb gold) is found in drainage #4 (which is parallel to drainage #3) and at a lower elevation indicating either a separate gold source or the presence of an east-west zone of mineralization cross-cutting through the two drainages. 

The multi-element geochemical signature of drainage #4 is characterized by relatively elevated values of arsenic, copper, nickel, strontium, titanium, vanadium and zinc suggesting the presence of hydrothermally altered intrusive rocks further upstream.

In the southernmost drainages (#1 and #2), the gold values are weakly anomalous ranging from 14 – 19 ppb gold. The multi-element analysis of the samples shows distinct geochemical signatures from each drainage, which will be followed up with further sampling to provide exploration targets.

Three rock chip samples were taken along a 500 metre stretch of river bed near the eastern border of the concession block from separate outcrops of polymictic andesite breccia (angular lithic fragments) with chlorite and up to 10% pyrite in the matrix. The rock chip samples returned background values of gold with weakly anomalous values in copper and zinc related to alteration in the sampled outcrops. CNR-02 contained 57 ppm copper and 107 ppm zinc while CNR-03 gave anomalous values in titanium and vanadium (0.41% titanium, 114 ppm vanadium). 

Sample No. Sample size (metre) Gold (ppm)
CNR-01 2x2 chip <0.005
CNR-02 2x2 chip <0.005
CNR-03 2x2 chip <0.005

About the Cenepa Gold Project

The Cenepa Project totals over 9,000 hectares in northern Peru along its border with Ecuador. The property, staked by NDR Peru commencing in 2006, cover the projection of a 20 kilometre long north-south trending mineral belt that includes Kinross' Condor Project and the Fruta del Norte gold discovery. The Company has obtained title for six concessions and anticipates title for the remaining concessions to be granted within the next quarter.

The Condor Project is situated in Ecuador near the Peruvian border and was acquired by Kinross in September 2008 through the $1.2 billion dollar acquisition of Aurelian Resources Inc. The Kinross property includes a NI 43-101 compliant Inferred Mineral Resource at Fruta del Norte consisting of 58.9 million tonnes grading 7.2 g/t gold and 11.8 g/t silver containing 13.7 million ounces of gold and 22.4 million ounces of silver. Kinross currently has 4 drill rigs active on the project and have stated they intend to complete a pre-feasibility study in 2010.

Also within the Condor Project is the Aquas Mesas Sur prospect, which includes an announced drill intercept of 51.06 g/t gold over 9.2 metres. This prospect is the southern-most known gold occurrence within this newly emerging gold belt and is located only five kilometers north, and on trend with, NDR Peru's Cenepa concessions. Although there has been very limited exploration work in Peru where the mineral trend crosses the border, the Company believes the area is geologically highly permissive for the discovery of significant gold deposits.

Corporate Update

New Dimension reports that Tom Burkhart has stepped down as Vice-President of Exploration, but will carry on as a Director of the Company. In order to continue with its aggressive exploration programs, New Dimension has retained consulting geologists Mr. David Mehner and Mr. Steven L. Park. Mr. Mehner has over 30 years experience throughout Mexico, North America and Asia, and will provide valuable direction to New Dimension as it continues to move forward. Mr. Park, a resident of Lima Peru for the past 15 years, will continue to work with New Dimension in advancing its South American properties. Mr. Park has over 30 years experience in project generation and resource modeling for junior and senior mining companies within the Americas. Mr. Park will be a key asset for the Company as it advances the Cenepa gold project.

Quality Control

The stream sediment samples were taken under geological supervision and prepared for analysis in ALS Chemex Labs by sieving each sample to -80 mesh (180 micron). Both fractions were retained; the fine fraction was analyzed using FA with AA finish for gold analysis and aqua regia digestion and ICP-AES analysis for a suite of 35 elements. The rock chip samples were also analyzed using FA with AA finish for gold analysis and aqua regia digestion and ICP-AES analysis for a suite of 35 elements.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Fred Hewett the Company's President & CEO, a director and a Qualified Person under NI 43-101.



"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO

This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See New Dimension's filings for a more detailed discussion of factors that may impact expected results.

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