August 24, 2006 14:17 ET

Dios' Update on Pontax Property

MONTREAL, QUEBEC--(CCNMatthews - Aug. 24, 2006) - A glacial till sampling program was completed this summer on the PONTAX PROJECT of DIOS EXPLORATION INC. (TSX VENTURE:DOS) in the south-western James Bay region of Quebec in order to locate diamondiferous kimberlite targets.

The discovery of high-quality Kimberlite Indicators Mineral (KIM) (released in April) including minerals such as high chromium/ low calcium G10 pyrope (over 10% Cr2O3, less than 3% CaO - one of the best chemistry found in Quebec - says Ms Girard, Geo.), picroilmenite, clinopyroxene (kosmochlor) and kimberlitic olivine led DIOS to pursue diamond exploration on part the PONTAX project and its up-ice extent this summer. Most of the observed KIM occur within well-defined glacial dispersal trains with distinctive geochemical signatures. One is characterized by its anomalous gold-tungsten-gahnite contents, and the other one by anomalous mercury-arsenic-antimony. Till samples are being processed for heavy mineral contents and KIM.

These claims are held 50-50 in partnership with SIRIOS RESOURCES INC. They are located up-ice and adjacent to a large landholding held by De Beers Canada Inc. covering over 3,000 sq. kilometres.


SIRIOS announced today the discovery of a first high grade silver-gold showing on these claims forming part of their PONTAX property, where rock samples graded up to 1,025 g/t silver and 1,4 g/t gold. Six grab samples collected returned the following grades :

sample # Ag grade Au grade
g/t(i) g/t
297134 83,8 0,283
297135 1 025,0 0,575
297136 800,0 1,375
297137 20,3 0,046
297138 9,1 0,014
297139 30,5 0,094

(i) g/t : grams per tonne

The mineralized zone is of metric width and outcrops over a length of 40 meters; it is open on both sides. It occurs along a silicified lithological contact with up to 15% sulfides. These sulfides comprise mainly pyrite and galena (lead sulfide) with traces of chalcopyrite (copper sulfide). Twenty-one additionnal grab samples wete collected on the showing during a second visit to the site which also led to the discovery of a second outcrop showing similar characteristic and located approximatively 250 meters along strike. Assay results from these samples are pending. A channel rock saw sampling program will be carried out in the next coming days.

Field work was performed by the personnel of IOS Geosciences Inc. of Saguenay, Quebec, in addition to the staff of Dios and Sirios, under the supervision of Rejean Girard, Geo., Qualified Person. Samples were assayed at the ALS-Chemex Laboratory of Val d'Or, Quebec.

Under the agreement with Sirios, the processing for kimberlite indicator minerals (diamond) will be paid by DIOS, while the cost incurred for gold and base metals exploration will be paid by Sirios. If the project is to focus specifically on silver-gold, Sirios has the option to buy back DIOS' share, by repaying in cash or shares (acquisition and exploration costs at book value) and vice versa, and DIOS is to keep a 1% NSR on the claims.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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