Dawson Gold Corp.
TSX VENTURE : DYU

Dawson Gold Corp.

November 17, 2010 09:00 ET

Dawson Gold Signs Letter of Intent on the Orofino Gold/Silver Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Dawson Gold Corp. (TSX VENTURE:DYU) ("Dawson Gold") announces that it has signed a Letter of Intent ("LOI") with Yale Resources Ltd. ("Yale") for the option to earn a 70% interest in the Orofino Property (the "Project") located in Sonora State, Mexico. 

The Orofino Project is a structurally controlled quartz-carbonate veins, shears and breccias hosted gold/silver system located approximately 135 km southeast of Hermosillo, Sonora State and is approximately 83 square kilometres in size. This district scale project contains:

  • Eleven known mineralized targets* 
  • Six historic open-pit workings*
  • Historic small-scale production during the mid-1990s, (reportedly resulting in the production of 60,000 tonnes of ore grading approximately 2 to 4 grams per tonne gold.)*

*Yale Resources Ltd. website and publicly filed documentation. Dawson Gold has not been able to verify these reported activities or grades but intends to during a due diligence period.

Highlights from previous work within the concessions are (see Yale news releases dated October 6, November 6, and December 1, 2009):

  • 3.19 g/t gold and 83.2 g/t silver over 30.0 metres from within the La Perla pit;
  • 1.88 g/t gold and 56.8 g/t silver over 10.67 metres from drill hole north of La Perla pit;
  • 3.97 g/t gold over 9.14 metres from drill hole at the El Orofino target;
  • 2.27 g/t gold and 13.7 g/t silver over 15.24 metres from drill hole at the El Gato target;
  • 2.53 g/t gold and 29.6 g/t silver over 4.4 metres from excavation at La Perlita West; and
  • 7.79 g/t gold and 173.0 g/t silver over 2.4 metres from excavation at La Perlita North.

All of the samples mentioned in this release were prepared and analyzed by Inspectorate at their labs in Hermosillo and Vancouver and generally consisted of 2-4 kg of material. Gold analyses were performed by 30 gram fire assay with an AA finish. Silver and base metals were analyzed as part of a multi-element ICP package using an aqua regia digestion; samples with more than 100 g/t silver, 1% copper, 1% lead and/or 1% zinc (over limit) were re-analyzed using Inspectorate's 'ore grade' detection limits.

To earn a 70% interest Dawson Gold will be required to pay Yale $55,000, spend $2,800,000 on exploration expenditures and issue 1,000,000 shares to Yale over a period of four (4) years. The exploration expenditure required in the first year is $400,000. Dawson paid Yale $10,000 upon signing of the LOI which is credited against the cash payment to Yale. The transaction is subject to a satisfactory due diligence review to be completed by December 15, the entry into a definitive agreement between the parties formalizing the terms of the LOI, and to TSX Venture Exchange acceptance. 

Yale will be the operator for the Project during the first year of the agreement and Dawson will have the option to assume management of the project thereafter.

In additional business, the Board of Directors of Dawson Gold has approved the movement of the office of Dawson Gold Corp. to 350-580 Hornby Street, Vancouver B.C., V6C 3B6. 

About Dawson Gold Corp.:

Dawson Gold is a mineral exploration company, currently focused on the exploration and development of the Toro Property located in the Yukon Territory. Dawson Gold is focused on the identification, acquisition and exploration of quality mineral assets. 

President Michael Collins, P.Geo, a qualified person under NI 43-101, with respect to the Orofino Project, and has read and approved the content of this news release.

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