October 04, 2011 10:47 ET

Discovery of Outcrop Gold Showings on AU33 West by DIOS and Osisko

MONTREAL, QUEBEC, CANADA--(Marketwire - Oct. 4, 2011) - DIOS EXPLORATION (TSX VENTURE:DOS) reports the discovery of outcropping gold mineralized occurrences (up to 3.79 g/t gold) in tonalite rocks on the AU33 WEST GOLD PROPERTY, James Bay, Quebec. The property is currently optioned to OSISKO MINING CORPORATION.

Highlights :

  • 3 mineralized outcropping area were discovered and could explain some of the gold in till anomalies and the occurrence of goldbearing glacial boulders.
  • 6 outcrop rock samples returned values greater than 1.5 g/t gold. Mineralization is disseminated (no quartz veins) suggesting a large bulk tonnage « gold porphyry » type mineralization potential.

First results of the several week July field campaign returned :

Sample Gold (g/t) X_NAD83ZONE18 Y_NAD83ZONE18
86391177 3.79 415200.8966 5782296.967
86391028 2.71 415720.8783 5781190.974
86391161 2.66 414434.9222 5781260.972
86391160 2.04 414434.9222 5781262.972
86391338 1.765 414484.9199 5780042.98
86391400 1.575 414597.916 5779921.98
86391314 0.804 420132.7282 5782512.968
86391344 0.673 414476.9202 5780026.98
86391026 0.539 415941.8709 5781470.972
86391027 0.535 415710.8786 5781190.973

A second one-month field campaign during October will target a 3 by 3 kilometer area, including a detailed geological survey, detailed outcrop sampling and soil geochemistry (and possible stripping).

A porphyry gold type deposit is looked for on AU33 WEST, in the Opinaca-Eastmain emerging gold district, also hosting the worldclass-multi-million ounce Éléonore gold deposit. The property comprises 519 mining cells covering 26,660 hectares.

Following the execution of an option and joint venture agreement in July, OSISKO was granted the option to earn a 51 percent participating interest in the property by incurring expenditures totaling $ 5,000,000 and making cash payments totaling $ 700,000 during a five year period. OSISKO was granted a second option to earn up to a 9 percent additional participating interest by incurring $ 9,000,000 of additional expenditures during a period of five years. OSISKO was granted a third option to earn an additional 10 percent participating interest by solely funding a feasibility study.

Samples were assayed by Au-AA 24 at ALS-Chemex with blank and duplicate inserts for quality control. Scan ME-ICP41 assays on forty samples greater than 0.057 ppm are pending. This press release was prepared by Marie-Jose Girard, M.Sc. Géo, 43-101 QP.

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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