Dunav Resources Ltd.
TSX VENTURE : DNV

Dunav Resources Ltd.

November 26, 2012 11:49 ET

Dunav Resources Announces a Significant Inferred Resource Estimate for its Tulare Copper-Gold Porphyry Project

300,500,000 tonnes grading an average of 0.27% copper and 0.26g/t gold for 1.8 billion pounds of copper and 2.5 million ounces of gold

LONGUEUIL, QUEBEC--(Marketwire - Nov. 26, 2012) - Dunav Resources Ltd. (TSX VENTURE:DNV) (the "Company" or "Dunav") is pleased to announce the initial resource estimate for the Kiseljak project area, part of its Tulare Copper-Gold Porphyry Project located in Southern Serbia.

The Kiseljak mineral resource, prepared by AMC Consultants Limited (UK) ("AMC"), an independent mining consulting firm, has been estimated at 300,500,000 tonnes grading an average of 0.27% copper and 0.26g/t gold in the inferred resource category for 1.8 billion pounds of copper and 2.5 million ounces of gold, using a 0.25% copper equivalent cut-off.

A summary of the Kiseljak Inferred mineral resource estimate using various cut-offs is tabulated below:

Cut Off
(Cu_eq %)
Million Tonnes Cu
(%)
Cu
(Bn lbs)
Au
(g/t)
Au
(Moz)
S
(%)
Cu_eq
(%)
Au_eq
(g/t)
0.15 443.9 0.23 2.25 0.21 3.01 1.85 0.35 0.58
0.20 370.0 0.25 2.04 0.23 2.74 1.74 0.39 0.64
0.25 300.5 0.27 1.79 0.26 2.52 1.67 0.43 0.71
0.30 240.5 0.30 1.59 0.28 2.17 1.62 0.47 0.77
0.35 188.1 0.32 1.33 0.31 1.88 1.59 0.51 0.84
0.40 141.6 0.35 1.09 0.34 1.55 1.58 0.55 0.91
0.45 100.2 0.38 0.85 0.37 1.21 1.59 0.60 0.99
0.50 73.4 0.41 0.66 0.40 0.95 1.59 0.65 1.07
  1. The effective date of the mineral resource estimate is November 22, 2012.
  2. The copper price used in this estimate is the mean of monthly average London Metal Exchange copper spot prices for 2010, 2011 and 2012 and is $3.60/lb. The gold price used in this estimate is the mean of the monthly average spot gold prices for 2010, 2011 and 2012 and is US$1,500/oz.
  3. The copper and gold equivalent cut offs, used by Dunav, are based on the in situ grades, using the following formulas:
    • (Using a gold price of US$48.23/gramme and a copper price of US$79.356/per cent)
    • Cu_eq = ((Au*48.23)+(Cu*79.356))/79.356
    • Au_eq = ((Au*48.23)+(Cu*79.356))/48.23
  4. Second phase, extensive metallurgical test work is nearing completion and, based on information to date, along with possible projected throughput rates for the Copper-Gold Tulare Porphyry Project, typical mining costs and a range of processing costs and indicative ranges of processing recoveries it is, at this stage, believed by Dunav that possible cut off grades lie in the range of 0.15% CuEq to 0.25% CuEq.
  5. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  6. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as indicated or measured mineral resources.
  7. Totals and average grades are subject to rounding to the appropriate precision.

The Tulare Copper-Gold Porphyry Project comprises several porphyry copper-gold targets including Kiseljak, Yellow Creek, Trlica and Calovica vis South and also includes the Bakrenjaca carbonate-base metal epithermal vein system; all target areas are located within 3,000 meters of the Kiseljak deposit. Dunav controls 100% of this newly identified porphyry cluster, located within the Lece Volcanic Complex.

G Mining Services Inc. (Montreal) have been contracted to manage the Preliminary Economic Assessment (PEA) of the Tulare Copper-Gold Porphyry Project.

  1. ADDITIONAL INFORMATION

Drilling and Sampling

  • The Kiseljak resource estimate is based on 71 diamond drill holes, as at 25th October 2012. Details of the drilling and sampling program, at the time of the database handover, are summarised in the table below.
Item DD Total
HOLES 71 71
METERS DRILLED 29,734.7 29,734.7
SAMPLES 29,836 29,836
AVERAGE RECOVERY 94 % 94 %
ASSAYS (Cu) 29,836
ASSAYS (Au) 29,836
ASSAYS (S) 29,505
BULK DENSITIES 3,929
  • Figure 1 shows the location of the Kiseljak deposit within the Tulare Copper-Gold Porphyry Project, whilst Figure 2 displays the drilling carried out to date (23rd November 2012) at Kiseljak. Figure 3 shows a typical cross section through the Kiseljak deposit.
  • Diamond drilling has been carried out such that drill holes are always started using PQ core and then reduced to HQ triple tube (HQ3) once competent rock has been intersected. The diamond drill core size is kept as HQ or HQ3 for as long as possible. Drill core is carefully packed for transport to the sample processing facility in Tulare. Once the diamond core has been processed (including photography, geotechnical and geological logging, magnetic susceptibility measurement etc.) it is then transported to SGS Bor for sample preparation and analysis.
  • The average core recovery is 94% in total.
  • Drill hole collars were surveyed by differential GPS (DGPS) by staff surveyors (registered independent surveyors regularly audit Dunav's survey control and procedures). All drill hole collar locations were surveyed by DGPS.
  • The diamond drill holes were down hole surveyed, on average, every 30 meters using electronic survey equipment.
  • Kiseljak has been drilled on a nominal 80 meter by 80 meter grid spacing.
  • Diamond core sampling has been carried out using Dunav's detailed protocols throughout the entire drilling program.

Density Measurements

  • Density measurements are routinely taken every three meters down hole from diamond drill core. The bulk density of the drill core segments is measured at the SGS managed laboratory at Bor using the industry standard wax-seal immersion method. The table below summarises the large number of density measurements for each rock type in the Kiseljak drill hole data set that have been collected and measured to date. The density data has been used for variographic analysis and ordinary kriging estimation in order to estimate the tonnage factors in the block model.
Lithology Mean Density (tonnes/M3) Total
Pre-mineral porphyry (PO1) 2.57 2,058
Intra-mineral porphyry (PO2, PO3) 2.51 647
Late-mineral porphyry (P04) 2.58 18
Metamorphic basement (MMB) 2.59 1,361
Other (hydrothermal breccia, magmatic breccia, fault gouge etc) 2.53 365
Total 2.56 4,449

Assaying

  • All Kiseljak drilling has been routinely assayed for copper (Cu), gold (Au), silver (Ag), molybdenum (Mo) and sulphur (S).
  • The table below summarizes the primary and referee assaying that comprises the Kiseljak resource estimation database, at the time of the database 'close off' and handover to AMC (25th October 2012), along with the assay methods that have been used.
Item Au Cu S
ASSAY METHOD 50g Fire assay/AAS Aqua regia/AAS Eltra furnace
PRIMARY ASSAYS 29,836 29,836 29,835
REFEREE GENALYSIS 1,933 1,932 1,888
REFEREE ALS VANCOUVER 2,030 2,030 2,030
  • An appropriate amount of quality control sampling and analysis has been completed, as part of Dunav's standard QAQC procedures, which is summarized below for copper and gold data.
Item DD Total
LAB DUPLICATES 1,408 1,408
LAB REPEATS 5,705 5,705
LAB SPLITS 1,631 1,631
REFEREE GENALYSIS (Cu) 1,932
REFEREE GENALYSIS (Au) 1,933
REFEREE GENALYSIS (S) 1,888
REFEREE ALS VANCOUVER (Cu) 2,030
REFEREE ALS VANCOUVER (Au) 2,030
REFEREE ALS VANCOUVER (S) 2,030
BLANKS 602
INTERNATIONAL STANDARDS 2,235

Variography

  • Detailed variography has been carried out for the Cu, Au, S and bulk density data grade for use in the ordinary kriging estimations. Separate variograms models have been constructed for the defined mineralized zones, subdivided by oxidation state; completely oxidized (COX), partially oxidized (POX) and unoxidized (FRS).
  • The table below summarises the modelled grade variography.
Zone Oxidn. Element Nugget Value Structure 1
Sill Value
Structure 2
Sill Value
Structure 3
Sill Value
Structure 1
Range (m)
Structure 2
Range (m)
Structure 3
Range (m)
X Y Z X Y Z X Y Z
North COX Cu 0.14 0.26 0.60 118 118 118 330 330 330
Au 0.10 0.32 0.58 6 6 6 175 175 175
S 0.24 0.16 0.59 97 97 97 595 595 595
North POX Cu 0.10 0.30 0.40 9 9 9 88 88 88
Au 0.05 0.31 0.64 30 30 30 98 98 98
S 0.21 0.22 0.58 94 94 94 771 771 771
PO1N FRS Cu 0.10 0.16 0.28 0.46 39 39 39 90 90 90 305 305 305
Au 0.08 0.32 0.36 0.24 59 59 59 152 152 152 342 342 342
S 0.13 0.17 0.71 18 18 18 302 302 302
PO1S FRS Cu 0.08 0.40 0.52 86 86 86 191 191 191
Au 0.06 0.49 0.45 56 56 56 102 102 102
S 0.15 0.19 0.67 26 26 26 354 354 354
PO2N FRS Cu 0.06 0.12 0.82 11 11 11 444 444 444
Au 0.06 0.10 0.84 16 16 16 897 897 897
S 0.12 0.13 0.76 28 28 28 299 299 299
  • Variographic analysis was also applied to the density database. The two main mineralized zones, PO1N and PO1S, were used for variographic analysis and the parameters determined are listed in the following table. The variogram parameters were applied to the mineralized zones as follows:
    • PO1N parameters were applied to the PO2N and PO3N domains.
    • PO1S parameters were applied to the PO2S domain.
Zone Oxidn. Nugget
Value
Structure 1
Sill Value
Structure 2
Sill Value
Structure 3
Sill Value
Structure 1
Range (m)
Structure 2
Range (m)
Structure 3
Range (m)
X Y Z X Y Z X Y Z
PO1N FRS 0.19 0.24 0.30 0.26 11 11 11 123 123 123 585 585 585
PO1S FRS 0.45 0.09 0.14 0.32 40 40 40 100 100 100 252 252 252

Resource and Grade Modelling

  • Detailed interpretation of the geological and grade data has resulted in the modelling of 5 main zones of copper-gold mineralization.
  • One-meter composites were used to define lithological boundaries, geological boundaries and the mineralized zone outlines. Five-meter down hole composites were used for statistical analysis, variography and grade estimation. The table below summarizes the number of five-meter composites within the various domains.
Mineralized Zone Weathering Zone Number
PO1N COX 127
POX 517
FRS 3,402
PO1S COX 107
POX 87
FRS 763
PO2N COX 25
POX 30
FRS 763
PO2S COX 3
POX 2
FRS 81
PO3N FRS 18
OTHER 10
TOTAL 5,935
  • Block model preparation and resource estimation has been completed using Datamine and various GSLIB program libraries. One-meter composites (the standard Dunav sampling unit) were used to define geological boundaries and mineralized wireframes, whilst five-meter down hole composites were used for statistical analysis, variography and resource estimation. The table below summarizes the block model parameters.
Item EAST NORTH RL
LENGTH (METERS) 2,300 2,500 1,140
PARENT CELL (METERS) 20 20 20
  • The following table summarizes the sub-blocking used to build additional detail into the block model
Item EAST NORTH RL
Topography 10 10 5
Mineralization 10 10 10
Oxidation 10 10 5
Structures 10 5 10
Constraining Boundary 10 10 10
  • The block model closely matches the volumes of the mineralized zone wireframes as shown in the table below.
Mineralized Zone Wireframe Volume
(million cubic meters)
Block Model Volume
(million cubic meters)
Per cent Difference
PO1N 571.89 570.57 -0.2
PO1S 352.62 352.60 0.0
PO2N 46.46 46.42 -0.1
PO2S 1.97 1.97 0.0
PO3N 2.18 2.16 -0.6
TOTAL 975.13 973.72 -0.1
  • Resource estimation has been completed using the geostatistical estimation technique, Ordinary Kriging ("OK"). Bulk density has been estimated into the block model using ordinary kriging. Five main mineralized zones were defined, hosted within mineralized porphyries and mineralized basement rocks. Following statistical assessment, no upper cuts were applied.
  • The search parameters used during Cu, Au and S grade estimation are summarised in the following table. A three-pass estimation approach was used in order to populate the mineralized zones with grade and density estimates, wherein the search ranges were steadily increased until the mineralized wireframes were filled with grade estimates. The minimum number of composites per hole was restricted to 6 composites, such that a minimum of two holes was required for a block estimate.
Long Axis Orientation No of Samples Search Ranges (m)
Zone Dip Direction Min Max 1st Search
Volume
2nd Search
Volume
3rd Search
Volume
X Y Z X Y Z X Y Z
COX 90 0 12 36 60 120 60 120 240 120 180 360 180
POX 90 0 12 36 60 120 60 120 240 120 180 360 180
FRS -60 N040E 12 36 60 120 60 120 240 120 180 360 180
  • The search parameters used for the density data are summarized below.
Long Axis Orientation No of Samples Search Ranges (m)
Zone Dip Direction Min Max 1st Search
Volume
2nd Search
Volume
3rd Search
Volume
X Y Z X Y Z X Y Z
COX 90 0 12 36 100 200 100 200 400 200 300 600 300
POX 90 0 12 36 100 200 100 200 400 200 300 600 300
FRS -60 N040E 12 36 100 200 100 200 400 200 300 600 300
  • The table below summarizes the proportion of blocks that were estimated on each estimation pass.
Search Volume Estimation Pass Percentage of Blocks Estimated
Pass 1 - 1st Search Volume 41
Pass 2 - 2nd Search Volume 47
Pass 3 - 3rd Search Volume 10
Not estimated 2

Grade-Tonnage Reporting

  • The Kiseljak mineral resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The in-situ resource estimate is within the defined mineralized wireframes and is reported at a range of lower cut off grades. A comprehensive, second phase of metallurgical test work, to follow up on the work carried out in 2008, is being completed and will be used with the PEA to define the appropriate cut-off grade for the Tulare Copper-Gold Porphyry Project (Kiseljak). The PEA has been initiated and is being managed by G Mining Services Inc. of Montreal.
  • The Kiseljak resource model has been categorized as Inferred Resources using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (November 2010). Follow up, targeted drilling will be planned to confirm the current geological interpretation, along with collection of additional assay data, in order to facilitate the elevation of the resource category from Inferred to Indicated.
  • In the table below the reported tonnes, grade and contained gold have been rounded to the appropriate level of precision for the reporting of an Inferred Resource, and the numbers may not correlate exactly due to rounding errors.

Kiseljak Inferred Resources - Grade-tonnage report

Cut Off
(Cu_eq %)
Million Tonnes Cu
(%)
Cu
(Bn lbs)
Au
(g/t)
Au
(Moz)
S
(%)
Cu_eq
(%)
Au_eq
g/t)
0.15 443.9 0.23 2.25 0.21 3.01 1.85 0.35 0.58
0.20 370.0 0.25 2.04 0.23 2.74 1.74 0.39 0.64
0.25 300.5 0.27 1.79 0.26 2.52 1.67 0.43 0.71
0.30 240.5 0.30 1.59 0.28 2.17 1.62 0.47 0.77
0.35 188.1 0.32 1.33 0.31 1.88 1.59 0.51 0.84
0.40 141.6 0.35 1.09 0.34 1.55 1.58 0.55 0.91
0.45 100.2 0.38 0.85 0.37 1.21 1.59 0.60 0.99
0.50 73.4 0.41 0.66 0.40 0.95 1.59 0.65 1.07
  1. See notes on page 1.

Preliminary metallurgical test work on diamond drill core samples from Kiseljak, carried out in 2008 at SGS Lakefield in Toronto, Canada, has indicated that very high copper and gold recoveries are potentially achievable using typical grind sizes. Excellent flotation recovery characteristics were exhibited for both copper and gold, and a copper-gold concentrate with no deleterious elements was produced. A portion of the gold mineralization is recoverable by standard gravity methods, potentially enhancing the overall gold recovery. Preliminary grinding test work showed a medium to soft mineralization type with a bond work index of approximately 11kWhr/t. Further metallurgical test work is underway and an extensive program of additional metallurgical testwork is nearing completion.

Please see the following link to view all Kiseljak and Yellow Creek drill holes located spatially in three dimensions: http://www.corebox.net/properties/tulare-porphyry-project

  1. SAMPLING AND ANALYSIS

The majority of soil samples have been assayed at the ALS Chemex laboratory, Perth, Australia. More recent soil sampling programs have been assayed at the SGS managed laboratory at Chelopech in Bulgaria using a combination of ICP-OES and ICP-MS, whereas gold has been assayed by low level detection fire assay method (50 gram sample charge) with an AAS finish. Trench samples were prepared at the laboratory facility at SGS Bor and the samples have been assayed at the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed laboratory facility at Bor. Diamond drill core has been prepared at the laboratory facility at Bor and assayed at either the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed laboratory at Bor. Trench and diamond drill samples have been assayed for gold by 50 gram fire assay with an AAS finish whilst copper, silver and molybdenum have been analysed using an aqua regia digest with an AAS finish. A one metre sampling interval has been used where possible for the Tulare Copper-Gold Porphyry Project diamond drilling program. Half core is routinely submitted to the laboratory for analysis. Following Dunav standard quality assurance procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards and blanks, have been submitted with each batch of samples.

Trench sampling was carried out as channels in the wall just above the trench floor on 2 meter intervals. Except where extensive soil cover is encountered, trenches were sampled in their entirety. The samples were routinely weighed prior to final bagging to maintain an even sample size and to avoid sampling bias in harder rock types. An average channel sample weight was maintained at 3 kilograms per meter, which produces a consistent sample weight approximating half HQ core samples. Field duplicate samples were taken every 20 samples and known standards were inserted into the sample stream after every 20th sample. A geological and structural log was completed as for diamond drilling. All data collected in the field was routinely entered into geology and structural geology spread sheets using Field Marshal software for subsequent entry to an acQuire database and validation.

  1. QUALIFIED PERSONS

The Kiseljak resource estimate was undertaken by independent qualified person Chris Arnold MAusIMM CP(Geo) of AMC. Mr. Arnold of AMC has reviewed and approved the contents of this press release insofar as the Kiseljak mineral resource estimate is concerned.

AMC is completing a technical report for the mineral resource estimate in compliance with NI 43-101 to be filed on SEDAR within 45 days of this press release.

The other technical information contained in this press release was prepared and approved by Dr Julian F. H. Barnes, FAusIMM, MAIG, a special consultant to the Company. Dr. Barnes is a 'qualified person' within the meaning of that term under NI 43-101.

Previously released data refers to data included in the "Tulare Project, Serbia National Instrument 43-101 Technical Report" by Paul Mazzoni dated November 22, 2010 (the "Technical Report"), filed on SEDAR at www.sedar.com. Further information in respect of results, investigations, interpretations, quality assurance and quality control measures, along with geology, mineralogy, sampling, and analytical procedures is included in the Technical Report.

About Dunav Resources Ltd.: Dunav Resources is a mineral exploration company focussed on the acquisition, exploration and development of mineral properties in Serbia. Additional information about the Company is available on SEDAR at www.sedar.com and at www.dunavresources.com.

Dunav had approximately $4.2 million in its treasury at September 30, 2012, which it plans to use for the exploration and development of its mineral projects in Serbia. Dunav's issued and outstanding share capital totals 119,242,942 common shares, of which approximately 47.3% is held by Dundee Precious Metals Inc.

Cautionary Statement

This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward looking information in this news release includes information with respect to the mineral resource estimate and its potential expansion and upgrade to a higher level of confidence, the Company's plans to complete a preliminary economic assessment, the geological and economic potential of the Tulare Project, the results and interpretation of exploration activities and studies including results of preliminary metallurgical test work, and the timing and location of future work programs.

"Inferred Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Investors are cautioned not to assume that all or any part of an inferred mineral resource reported in this news release will ever be upgraded to a higher category or to reserves.

Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information is subject to known and unknown risks and uncertainties, and depends on assumptions and other factors, all of which may cause actual results or events to differ materially from those anticipated or estimated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Figures 1 to 3 are available at the following address: http://media3.marketwire.com/docs/Dunav_maps.pdf

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 press release.

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