Dunav Resources Ltd.
TSX VENTURE : DNV

Dunav Resources Ltd.

August 28, 2012 08:00 ET

Dunav Resources Completes the Initial Kiseljak Resource Definition Drilling Program on the Tulare Porphyry Project, Serbia

LONGUEUIL, QUEBEC--(Marketwire - Aug. 28, 2012) - Dunav Resources Ltd. (TSX VENTURE:DNV) (the "Company" or "Dunav") is pleased to present an exploration update on its 100% held Tulare Porphyry Project located in Southern Serbia.

1. HIGHLIGHTS

  • The recently completed Kiseljak resource definition program was focused on establishing continuity of mineralization. The drilling program has used a nominal 80 meter by 80 meter grid spacing. The drill holes are located within the Kiseljak mineralized 'footprint' that has been outlined by Dunav since drilling commenced in May 2011.
  • Recently completed resource definition diamond drilling continues to confirm moderate to strong porphyry-style copper-gold mineralization within the currently identified 800 meter by 300 meter diorite porphyry footprint. Selected intersections are listed below, calculated using a 0.26% CuEq cut-off grade:
Hole ID From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Cu
(%)
AuEq
(g/t)
CuEq
(%)
KIDD031 0 82 82 0.42 0.45 1.33 0.66
KIDD031 244 366 122 0.25 0.30 0.84 0.42
KIDD032 123 508 385 0.34 0.31 0.95 0.48
KIDD045* 203 496 293 0.44 0.43 1.31 0.65
KIDD045* 571 657.8 86.8 0.54 0.63 1.80 0.90
KIDD047 0.5 85 84.5 0.79 0.52 1.82 0.91
KIDD050 21.6 129 107.4 0.34 0.30 0.95 0.47
KIDD054 126 212.2 86.2 0.31 0.38 1.07 0.53
KIDD065* 239.7 638.2 398.5 0.35 0.40 1.16 0.58
KIDD068 28.2 138 109.8 0.72 0.27 1.26 0.63
-- 0.26% CuEq cut-off ($1,200/oz. Au, $3.50/lb. Cu), 5m minimum composite length, 5m maximum internal dilution.
-- AuEq = ((Au g/t*38.58) + (Cu%*77.16))/38.58
-- CuEq = ((Cu%*77.16) + (Au g/t *38.58))/77.16
-- Diamond drill samples are PQ, HQ or NQ half core, using a nominal 1m sampling basis and weigh ~3-6kg.
-- Assay method: Fire assay Au (50g); Cu by aqua regia digestion with AAS finish.
-- Intercept widths do not necessarily represent true width.
-- No top cut applied.
-- (*) Drill hole terminates in mineralization i.e. mineralization remains open at depth.
  • The initial Kiseljak resource definition drilling program was recently completed and the database has been closed off, with the data forwarded to AMC Consultants Limited (UK) ("AMC").
  • The Tulare Porphyry Project comprises several targets including Kiseljak, Yellow Creek, Trlica and Calovica vis South. Dunav controls 100% of this newly identified porphyry cluster, located within the Lece Volcanic Complex.
  • Exploration diamond drilling continues to test new targets within the project area. Currently four diamond drill rigs are operating.
  • The Tulare exploration license was recently expanded in size to 26 sq. km, to incorporate additional areas with potential for mineralization, in particular the Bakrenjaca carbonate-base metal vein system, located approximately 3 km south of Kiseljak.
  • Additionally, G Mining Services Inc. (Montreal) have been contracted to manage the Preliminary Economic Assessment of the Tulare Porphyry Project.

2. DRILLING AT KISELJAK

Resource Definition Drilling:

  • Dunav commenced diamond drilling at Kiseljak on the 19th May, 2011. Drilling was completed in July, 2012 for a total of 29,734.7 drill meters.
  • The Kiseljak project, covering an area of approximately 800 meters by 300 meters, has been drilled on a nominal 80 meter by 80 meter surface grid spacing.
  • Refer to Table 1 for a summary of all intersections at a 0.26% Cu cut-off grade for all Kiseljak diamond drill holes.
  • Figure 1 displays diamond drilling to date within the Tulare exploration licence, overlain on a copper-gold correlation image, which is based on soil geochemical data.
  • Refer to Figure 2 for the location of all diamond drilling completed to date within the Kiseljak mineralized 'footprint' and to Figure 3 for a representative cross-section through the Kiseljak area.

3. CANADIAN NATIONAL INSTRUMENT 43-101 COMPLIANT RESOURCE ESTIMATION

  • Following site visits by international consultants AMC Consultants Limited (UK), the Kiseljak exploration database has been delivered to AMC in order to undertake independent resource estimation.
  • It is planned to complete the initial Canadian National Instrument 43-101 compliant resource estimate on Kiseljak by the end of Q3, 2012.
  • The current Kiseljak database is based on 29,734.7 meters of diamond drilling in 71 drill holes. The database includes over 138,000 primary analyses (gold, copper, silver, molybdenum and sulfur). In total there are 73,112 gold and copper assays, of which approximately 22% are internationally accredited standards, blanks, routine QAQC duplicate and replicate check assays together with 'umpire' samples assayed at outside laboratories. All drill holes have been down-hole surveyed at regular intervals; with drill collars surveyed using DGPS or total station surveying methods. The topographic surface is based on detailed DGPS and total station surveying methods. Over 3,777 bulk density measurements have been collected, using standard wax-sealed immersion methods.
  • All drill hole assaying and bulk density measurements have been carried out independently by SGS.

4. EXPLORATION UPDATE

Yellow Creek:

  • Exploration drilling to date has been focused on attempting to vector towards the potential center of the Yellow Creek porphyry system and to define the overall potential 'footprint' of mineralization.
  • Wide-spaced drilling on a nominal 120 meter by 120 meter spacing continues within the target area; currently there remains a backlog of Yellow Creek assay results due to the need to prioritize Kiseljak drilling in preparation for the database handover to AMC.
  • Refer to Table 2 for a summary of all Yellow Creek significant intersections received to date.

Trlica and Calovica vis South:

  • Exploration completed during 2011 within the Tulare project area, focused on areas external to the principal area of current drilling (Kiseljak), where additional diorite porphyry bodies have been identified through geological mapping, trenching and general prospecting.
  • The two principal target areas generated during this exploration phase are the Trlica and Calovica vis South porphyry targets, located 2.25 km southwest and 2 km south of Kiseljak respectively.
  • Dunav has recently commenced exploration diamond drilling on these targets.

Bakrenjaca:

  • The Bakrenjaca carbonate-base metal vein system is located approximately 3 km south of Kiseljak and comprises sheeted quartz-carbonate base metal veins hosted within argillic altered andesitic volcanics and volcaniclastics; zones of mineralization range in size from less than 1 meter to greater than 30 meters in width.
  • Detailed soil geochemistry (nominal 100 meter by 25 meter grid) has outlined a strongly anomalous Au-Ag-Cu-Pb-Zn zone over an approximate area of 1.5 square kilometers. Individual soil samples have returned up to 5.37g/t Au, 39.3g/t Ag, 0.58% Cu, 1.35% Pb and 0.62% Zn.
  • Dunav plans to commence a detailed assessment of the target area during the second half of 2012.
  • See Figure 1 for the location of Bakrenjaca relative to the other target areas within the Tulare Porphyry Project.

5. GEOLOGY AND MINERALIZATION

  • The porphyries of the Tulare Porphyry Project represent typical calc-alkaline copper-gold porphyry deposits, with a subvertical pipe-like geometry, intruded into amphibolite, biotite-schist and andesitic volcanics/volcaniclastics.
  • The mineralized porphyry system is associated with a series of hornblende-biotite-plagioclase-phyric porphyry dykes, which have been divided into four suites based on texture and association with copper-gold mineralization and alteration.
  • The porphyry-style mineralization occurs as stockwork and disseminated zones. Mineralization within the potassic zone primarily comprises quartz, chalcopyrite ± magnetite veinlets (0.1 to 10 mm thick) with subordinate bornite and disseminated chalcopyrite ± bornite.
  • Variable and lesser amounts of digenite, chalcocite, covellite, molybdenite and pyrite occur together with rare galena and sphalerite. Magnetite occurs both as disseminations and in quartz veinlets.
  • Gold mineralization occurs as blebs within sulfides, particularly in bornite and chalcopyrite. Gold grades correlate strongly with copper grades.
  • The Kiseljak copper-gold porphyry measures some 800 meters by 300 meters, where it is exposed at surface, and has been traced to a vertical depth of 800 meters to date. The Kiseljak mineralization is open at depth. Both the porphyry and the surrounding schist have been intruded by a series of generally barren, intra-mineralization to late diorite porphyry phases.
  • Figure 1 shows a plan view of the current target areas within the Tulare Porphyry Project.

6. DISCUSSION

  • The Tulare exploration license is located in southeast Serbia, approximately 230km from Belgrade and 70km from the regional centre of Nis. Access to the project is excellent via sealed roads. A rail heading is available some 45km from the project area at the city of Leskovac, or 25km to the northwest at the town of Kursumlija. Reticulated power passes close to the project area.
  • The Tulare Porphyry Project area lies within the Lece Volcanic Complex of southern Serbia; the second largest magmatic complex in Serbia after the Timok Magmatic Complex.
  • 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.
  • Additionally, Dunav plans to drill test the newly discovered Yellow Creek, Trlica and Calovica vis South copper-gold porphyry target areas and conduct a preliminary assessment of the Bakrenjaca carbonate-base metal vein system, in order to determine the economic potential hosted within the Tulare Porphyry Project.
  • 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

7. 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 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.

Dr Julian F. H. Barnes, a qualified person under NI 43-101, the Company's Special Consultant, has supervised the preparation of the technical data in this press release.

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 is well-capitalized, with approximately $9.0 million in its treasury at June 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. In particular, this press release contains statements concerning exploration results and geological interpretation, planned exploration programs, completion of a resource estimate and preliminary economic assessment, and the geological and economic potential of the Tulare Porphyry Project. 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 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.

Maps and tables are available at the following address: http://media3.marketwire.com/docs/mapandtabs0828.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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