December 01, 2011 10:00 ET

DIOS: Drilling Results on Shipshaw Carbonatite Complex

MONTREAL, QUEBEC--(Marketwire - Dec. 1, 2011) - DIOS EXPLORATION (TSX VENTURE:DOS) completed a drilling program in the Shipshaw area, Saguenay, Quebec, on its wholly-owned SHIPSHAW niobium-rare earths project. IOS Services Géoscientifiques of Saguenay provided a complete detailed report from this program last week. Also, a few additional holes were drilled later this summer, results pending: a wholly new hematized carbonatite breccia? zone was discovered while drilling the Falardeau anomaly a few km northeast of the St-Honoré carbonatite. Further drilling is planned later in the year.

Four drill holes returned metric size intercepts grading up to 0.251 %, 0.188 %, 0.177 %, 0.15 % Nb2O5, respectively, on SHIPSHAW. Several holes returned several intercepts grading 0.304 % to 0.442 % in rare earth elements (RRE) from one to sixteen m large intercepts. Also, a carbonatite outcrop was discovered and returned 7.5 m grading 0.36% rare earth element (REE) (incl. 0.582 % RRE over 1 m). Other track sampling returned one meter intercepts with 0.4% REE and 0.055 % and 0.04 % Nb2O5. Eleven grab samples returned values up to 0.071 % Nb2O5 and 0.525 % RRE.

The drill holes aimed at checking several concentric magnetic anomalies in the vicinities of a carbonatite occurrence. These anomalies were selected from the processing of an helicopter-borne magnetic survey carried out by Geodata Solutions and they are located about 4 kilometers south-southwest from the St-Honoré carbonatitic complex. The Shipshaw anomaly is located in an area characterized by thick clay-rich overburden known as the terres rompues, is located within a paleo-depression along the Saguenay River. Nineteen (19) drill holes were completed in the northern and central parts of the geophysical anomaly. The Shipshaw anomaly is a particularly interesting target for niobium and rare-earths in reason of its size, proximity and similarities with the aeromagnetic anomaly associated with the world-class St-Honoré niobium deposit.

DIOS commissioned IOS Services Geoscientifiques for the supervision, core-logging and sampling of the drilling program; planning was undertaken by DIOS. Drilling work was commissioned to a local area diamond drilling firm. A total of 19 NQ-size holes for 4518.6 meters were diamond drilled during the 2011 Shipshaw program and 33 average metric size samples returned values over 0.05 % up to 0.251% Nb2O5 (one 6.55 m sample returned 0.05 % Nb2O5) with assays by XRF at Actlabs.

Following Dr. M. Marino's recommendations concerning the 2010 aeromagnetic survey, a new strategy based on the usual magnetic signature of most known deposits was applied as primary carbonatites (mainly hydrothermal sovites) contain important magnetite concentrations derived from CO2-rich and salts-poor fluids. The interpretation of the geophysical data outlined numerous northsouth or northnorthwest striking magnetic lineaments, as well as circle-arcs crests. These signatures may be coincidental with carbonatitic dykes or cone-sheets. The same strike was also observed on decimetric-metric carbonatite dykes in nearby outcrops (along Aux Vases River).

To test this hypothesis, 18 of the 19 drill holes tested these magnetic anomalies. The orientation of the holes was perpendicular to the radial anomalies. Supposing that the anomalies are cone-sheeted dykes, the dip should be toward the inside of the anomaly and therefore the drilling should be directed toward the outside of the concentric structure. The last drill hole (#773-23) was planned to be 450 m long, but was stopped at 354 m due to technical problems. It aimed at fully testing the system of magnetic anomalies and possible carbonatite dykes: from the center of the low mag toward its margin, and going along the way through a high mag lineament at depth.

Also, sampling and track-sampling was completed on carbonatite outcrops along Des Vases River. These outcrops do have an extent over a 100 meter length by 15-20 meter width. They are characterized by strong fracturing and hematization as well as local breccias. Multiple-generations of carbonatite dykes with several orientations were observed.

The Shipshaw Carbonatite Complex is located a few kilometers away from the Niobec mine, Saguenay area, Quebec, in operation for over thirty years. New areas of the Shipshaw Complex remained to be tested and also at depth as well as new potential carbonatite targets surrounding the Niobec mine and defined by recent research work on DIOS wholly-owned claims. The first definition drilling phase to understand the geology of the Shipshaw Complex aimed at testing part of the Complex to a depth of 125-150 m. The Niobec mine is located 300 feet (90 m) at vertical depth from surface, covered by 240 feet of Trenton limestone, and developments now reach 2,400 feet.

The technical content of this press release was prepared by M.J. Girard, M.Sc., P.Geo, a Qualified Person pursuant to National Instrument 43-101.

Neither the 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.

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