Dawson Gold Corp.
TSX VENTURE : DYU

Dawson Gold Corp.

December 17, 2010 12:13 ET

Dawson Gold Announces Results of 2010 Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2010) - Dawson Gold Corp (TSX VENTURE:DYU) ("Dawson Gold") announces the results of exploration work completed during the 2010 work summer/fall program at the Toro Property in the Dawson Range of the White Gold District, central Yukon Territory.

Exploration drilling returned anomalous gold results in seven (7) of eight (8) drill holes with discrete intervals of up to 1m of 2.28 g/t Au and wide intervals of mineralization of up to 91.5m of 0.33 g/t Au. Gold mineralization was confirmed on the historic Main Zone and also in association with previously undrilled soil anomalies on the Ridge Zone. Company management is in the process of evaluating these results and is considering conducting further detailed gold analyses including metallic screening to more accurately constrain the reported gold values.

"These drill results, in particular from the Ridge Zone, demonstrate the relationship between gold-in-soil anomalies and gold in the drill core. The hydrothermal breccias drilled at the Ridge Zone have a similar style of mineralization to known "White Gold District" deposits and will be the focus of the 2011 Toro Project exploration," commented CEO, Paul D. Gray. 

Highlights of work completed in 2010:

  • Seven (7) of Eight (8) diamond drill holes return anomalous gold values
  • 1,516 metres of drilling and 1,033 core samples
  • Over 22 line kilometres of deep penetration Induced Polarity ("IP") geophysical surveys (covering ~4.5 km2) over three (3) distinct grids
  • Seven (7) soil zones covered by six (6) grids and two (2) contour soil lines of geochemical soil grid surveys (total 549 samples) expanding on and infilling between historic geochemical data
  • Property wide prospecting, mapping and stream silt sampling – 40 rock and seven (7) stream sediment samples

Diamond drilling commenced in late August and terminated in early October when weather conditions rendered impractical any further work. Five (5) holes targeted two of the three historic gold-in-soil anomalies outlined by geochemical surveys at the Ridge Zone in 1985. A third historical anomaly (anomaly "A" with gold-in-soil values up to 1,080ppb Au) remains untested. Three (3) holes intersected Coffee Creek phase granites and returned narrow zones of mineralization associated with mm-scale quartz-sulphide veinlets and associated silicification. The highest grade gold occurrence from these holes was 1.15m of 1.95 g/t Au found in close spatial relationship to a breccia zone in hole TT-101.

The two (2) additional holes collared in the Ridge Zone encountered granite intruded by long intervals of a newly identified polymictic hydrothermal breccia hosting well developed sulphide mineralization including pyrite, arsenopyrite, sphaelerite and galena. Au-grades intercepts within these holes include TT-104 91.5 m of 0.33 g/t Au in TT-104 and 16.9m of 0.35 g/t Au in TT-103.

A single diamond drill hole was collared to test the strong chargeability anomaly identified by the first completed 2010 IP survey grid. This hole encountered a relatively unaltered, K-felspar rich granitoid of the Dawson Range Batholith. The source of the IP anomaly was not identified and remains an area of area of interest.

The final two (2) drillholes of the program were designed to extend known gold mineralization within the historic Main Zone. Both holes encountered narrow zones of gold mineralization with values up to 1.49 g/t Au over 1 meter. Hole TT-108 ended prematurely above the expected high-grade zone target due to weather issues.

2010 Diamond Drilling Summary Table

TT-101
From To Width g/t Au (ICP) g/t (Fire)
23.6 25.9 2.3 1.39 1.39
         
TT-102
From To Width g/t Au (ICP) g/t (Fire)
146.5 148.4 1.9 0.408 0.582
         
TT-103
From To Width g/t Au (ICP) g/t (Fire)
147.5 149 1.5 1.41 1.42
         
TT-104
From To Width g/t Au (ICP) g/t (Fire)
73 164.5 91.5 0.316 0.330
Including
73 92.5 19.5 0.432 0.433
137 149.5 12.5 0.553 0.677
137 138.5 1.5 1.13 2.54
147.6 149.7 2.1 1.64 1.41
148.7 149.7 1 2.73 2.28
137 164.5 27.5 0.427 0.476
160.5 162 1.5 1.26 1.17
         
TT-105
From To Width g/t Au (ICP) g/t (Fire)
111.2 112.1 0.9 0.927 0.813
         
TT-106 - No significant results
         
TT-107
From To Width g/t Au (ICP) g/t (Fire)
164.6 166.1 1.5 0.960 0.896
         
TT-108
From To Width g/t Au (ICP) g/t (Fire)
79.2 93 13.8 0.453 0.442
including
79.2 82.3 3.1 1.02 1.02
Including        
79.2 80.8 1.6 1.47 1.49

Geophysical Survey Results

Over 22 line-km of deep penetration Induced Polarity ("IP") geophysical surveys were undertaken in three (3) distinct grids on the Toro Property in 2010. The targets were selected due to coincident structures, positive potassic alteration signatures shown by airborne radiometrics flown in 2009, and the occurrence of host rocks deemed favourable to host Cu-porphyry mineralization (ca. 76 Ma Tad Porphyry).

A well defined N-S trending anomaly was identified in Grid 1. This zone displays a high chargeability contrast with coincident resistivity low and appears in section as an approximately tubular body over 150m in diameter and running the full length of the survey lines (>1.6km). This body was tested with a single hole during the 2010 field season and remains a high-priority target in the upcoming season. A second anomaly to the north of the Main Zone displays a broad zone of elevated chargeability suggesting the potential for significant sulphide mineralization in this area. A third anomaly to the north of the Main Zone has outlined a well-constrained E-W trending chargeability anomaly.

Geochemical Survey Results

549 soil samples were taken on seven (7) targets. Two (2) targets returned anomalous results; a tight clustering of anomalous gold-in-soil values were identified covering an area approximately 300 m wide and 150 m long which remains open to the north, east and west. The second target returned values up to 540 ppb gold in soil and has outlined a very strong geochemical anomaly that measures approximately 550 m by 400 m. Well developed gold anomalies continue to the E, N and W of the sampling area. These new soil grid anomalies, as well as, the historic Ridge Zone anomalies will be expanded upon and drill tested in 2011.

All core and soil samples were processed and analyzed by Acme Analytical Labs of Vancouver, B.C. an ISO 9001 certified laboratory. The samples were all analyzed by ACME ICP-MS package 1DX15. In addition, a 30 gram Fire Assay for Gold ACME package 3B was run on each of the soil and core samples from the 2010 program.

The 2010 Toro Project work program was conducted under the supervision of Dawson Gold President Michael Collins, P.Geo., a qualified person under NI 43-101, who has read and approved the content of this news release.

Additionally, Dawson Gold reports that following due diligence, the Company has elected not to proceed with a definitive agreement with respect to the Orofino property of Yale Resources. See News Release dated November 17, 2010.

ON BEHALF OF THE BOARD OF DIRECTORS

Paul D. Gray, P.Geo. CEO

DAWSON GOLD CORP.

Neither 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.

Contact Information

  • Dawson Gold Corp.
    Mark Komonoski
    403-255-8483 or Toll-Free: 1-877-255-8483
    www.Dawsongold.com