DOT Resources Ltd.
TSX VENTURE : DOT

DOT Resources Ltd.

December 01, 2010 08:00 ET

DOT Resources Announces a 72% Increase in Inferred Resources and a 15% Increase in Indicated Resources for the Dot Property

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2010) - DOT Resources Ltd. (TSX VENTURE:DOT) ("DOT" or the "Corporation") is pleased to announce the results of an updated National Instrument ("NI") 43-101 compliant mineral resource estimation ("Mineral Resource") in respect of its 100% owned property (the "Property") in Central British Columbia, Canada.

Compared to the Mineral Estimation report dated June 22, 2009, the current mineral resources as of November 30, 2010, at a 0.20% copper cut-off, have increased as follows:

  • Inferred resources up 79% to 4.28 million tonnes at a copper equivalent grade of 0.49%.
  • Indicated resources up 19% to 5.33 million tonnes at a copper equivalent grade of 0.54%,

"We are very pleased of the success of our 2009 winter drilling program and of the increase in resources," as stated by John J. Komarnicki, Chairman and CEO of DOT, "This updated resource report illustrates the potential of the Property. The recommendations for further work contained in the Aurora Report will be considered as we formalize the details of the next exploration phase which we anticipate will begin in the first half of 2011."

MINERAL RESOURCE REPORT

The updated independent Mineral Resource Estimate ("Mineral Resource") report titled "Technical Report on a Diamond Drill Program and Mineral Resource Estimate For DOT Resources Ltd's Dot Property (the "Aurora Report") was prepared by Aurora Geosciences Limited ("Aurora") is dated November 30, 2010 and is in accordance with NI 43-101 and the Canadian Institute of Mining ("CIM") standards for reporting mineral resources. It is anticipated that the NI 43-101 Technical Report will be filed on SEDAR within 45 days in accordance with NI 43-101.

The current Mineral Resource incorporates all diamond drilling results from the Property including the assay results from 15 diamond drill core holes completed in late 2009 and early 2010 totaling 4,355.6 m.

Current Mineral Resource categories over a range of copper cut-off grades are summarized in Tables 1 and 2.

TABLE 1 – Indicated Mineral Resource Estimate (1)

The indicated resources for the Property over a range of copper cut-off grades are listed below:

Copper
cut-off
(%)
tonnes Copper
(%)
Silver
(g/t)
Gold
(g/t)
Molybdenum
(%)
Copper
equivalent
(%)
0.1 6,498,000 0.43 3.28 0.04 0.006 0.50
0.2 5,328,200 0.45 3.28 0.05 0.006 0.54
0.3 3,955,900 0.53 3.93 0.05 0.006 0.64
0.4 2,915,900 0.62 4.63 0.05 0.006 0.74

TABLE 2 - Inferred Mineral Resource Estimate

The inferred resources for the Property over a range of copper cut-off grades are listed below:

Copper
cut-off
(%)
tonnes Copper
(%)
Silver
(g/t)
Gold
(g/t)
Molybdenum
(%)
Copper
equivalent
(%)
0.1 6,615,900 0.35 1.46 0.01 0.003 0.37
0.2 4,279,700 0.46 1.99 0.02 0.004 0.49
0.3 2,971,100 0.56 2.54 0.02 0.004 0.60
0.4 1,969,800 0.70 3.35 0.02 0.004 0.75
     
Notes:
  (1) Mineral resources that are not mineral reserves do not have demonstrated economic viability. See "Cautionary Note Concerning Reserve and Resource Estimates".
  (2) Rounding differences may occur from those numbers presented in the Aurora Report following "best practice" principals.
  (3) The Mineral Resource set out above for the Property is based on a 3D geologic model and wireframe restricted block model that integrated the exploration work on the Property up to the end of January, 2010. The block model used a cell size of 10 m by 10 m by 10 m and Ordinary Kriging interpolation technique was performed at various search radii and ellipsoid orientations.
  (4) A composite value of greater than 0.10% copper was used as the lower limit for the definition of mineralization.
  (5) The Indicated and Inferred mineral resource categories for the Property set out in Tables 1 and 2 comply with the resource definitions of the CIM and NI 43-101: Standards of Disclosure for Mineral Projects.
  (6) Copper equivalent grades are calculated using the following average metal prices: US$3.00/lb copper, US$18.00/oz silver, US$14.00/lb molybdenum, US$1,200/oz gold and assumes 100% recovery of all metals. Note: the copper equivalency determined is essentially a semi-quantitative number in that it is not based on metallurgical studies and does not address metal recovery and a host of other production considerations.

BASIS OF RESOURCE ESTIMATE

The current resource estimate was prepared by Mr. Ronald James Robinson, BSc., P.Geol., a consulting geologist from Aurora, who is an independent qualified person within the meaning of NI 43-101. Mr. Robinson has reviewed and verified the technical information that forms the basis of and has been used in the preparation of the current mineral resource estimate and this news release. Mr. Robinson reviewed all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques.

Aurora used Gemcom's Surpac geology and mine modeling design and analysis software and an Ordinary Kriging wireframe restricted linear block model to estimate the current mineral resources contained in five of the mineralized zones on the Property. Classification methodology used to assign a level of confidence to the mineral resources conforms to the CIM mineral resource definitions referred to in NI 43-101. The analytical results and other technical information included in the current resource estimate have been previously announced by way of news releases over the past year and are available on www.sedar.com.

Top cut analyses were not performed on the input data set prior to block model estimation. Using these analyses, the assay values for the drill holes used in the resource estimate were composited and composite values greater than 0.10% copper were used for the definition of mineralization. 

All samples contained within the mineralized wireframe were composited to a standard length of 2.0 m for geostatistical analysis and interpolation. Variography was performed on the assay data within the mineralized wireframe to generate a series of semi-variograms. These variograms were incorporated into the search ellipsoid parameters used in the interpolation process.

Based on the geological model, exploration grid, search ellipsoid ranges and composite sizes and, the data used in the resource estimate was block modeled with a block size of 10 m by 10 m by 10 m for the purposes of the resource estimate.

CAUTIONARY NOTE CONCERNING RESERVE AND RESOURCE ESTIMATES

This press release and other information released by DOT uses the terms "resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the "SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time a reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

United States investors are cautioned not to assume that all or any part of Indicated resources will ever be converted into reserves. Inferred resources are in addition to Indicated resources. Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. United States investors are cautioned not to assume that all or any part of an inferred resource exist, or that it can be mined economically.

NI 43-101 is a national instrument developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this press release or released by DOT in the future, have been or will be prepared in accordance with NI 43-101 and the CIM and Petroleum Classification System. The requirements of NI 43-101 are not the same as those of the SEC.

QUALITY CONTROL

The drilling program and sampling protocol was completed under the supervision of Aurora Geosciences Ltd. A rigorous quality control and quality assurance protocol was used during the drilling program, including blank, duplicate and reference samples with each batch of assays. All drill core samples were analyzed by atomic absorption and fire assay at Eco Tech Laboratory Ltd. in Kamloops British Columbia. Eco Tech Laboratory Ltd. is registered for International Standards Organization ("ISO") rating 9001-2000 and is independent of DOT. Mr. Robinson has verified the data that forms the basis for the mineral resource estimate and the technical information contained in this press release.

Elmer B. Stewart, MSc., P. Geol., DOT's Qualified Person as defined by NI 43-101 has reviewed the technical information contained in this release.

ABOUT DOT

DOT is a Canadian corporation currently focused on the exploration and development of its copper property in central British Columbia. The Corporation is planning to assess future copper and copper-gold properties for exploration and development opportunities throughout North and South America.

DOT owns a 4,800 acre, 100% controlled porphyry copper +/- molybdenum, gold, silver property located 17 kilometres south of the Highland Valley Mining District, in central British Columbia.

DOT shares trades on the TSX Venture exchange under the symbol DOT. The Corporation's website can be accessed at www.dotresourcesltd.com

Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian and US laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, any statements concerning the timing, content and success of future exploration or geophysical survey or the ability to obtain funding to complete same and other factors and events described in this news release should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements, including but not limited to, the amount of estimated mineralization, the timing and possible outcome of possible pending economic evaluations, the Corporation's liquidity and financial capacity, the Corporation's funding sources to meet various obligations and other factors and events described in this document, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, potential drilling targets, exploration results, the timing of future diamond drilling, geophysical survey results, the availability of capital to fund exploration activities and the resulting dilution caused by the rising of capital through the sale of shares, the effects of the recessionary economy and such other business risks as discussed herein and other publically filled disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

Forward-looking statements are made based on management's beliefs, assumptions, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • DOT Resources Ltd.
    Ihor P. Wasylkiw
    Chief Information Officer
    +1 (403) 264-2647
    or
    DOT Resources Ltd.
    Don D. McKechnie
    Chief Financial Officer
    +1 (403) 264-2647
    www.dotresourcesltd.com