Dunav Resources Ltd.

Dunav Resources Ltd.

November 15, 2011 08:45 ET

Dunav Resources Confirms Continuity of Copper-Gold Mineralization Between the Kiseljak North and Kiseljak South Zones, Tulare Porphyry Project, Serbia

LONGUEUIL, QUEBEC--(Marketwire - Nov. 15, 2011) - Dunav Resources Ltd. (TSX VENTURE:DNV) (the "Company" or "Dunav") is pleased to present an update on drill results from the Kiseljak copper-gold diorite porphyry, part of the Tulare Porphyry Project located within the Tertiary magmatic arc of the Western Tethyan in Southern Serbia.

  • Framework diamond drilling (nominal 80 meter by 80 meter grid spacing) on the Kiseljak copper-gold porphyry target area commenced during Q2, 2011 and continues to confirm moderate to strong porphyry-style mineralization within the currently defined 800 meter by 300 meter diorite porphyry footprint outlined to date.
  • Drilling of the Kiseljak target area returned the following moderate to strong, copper-gold intercepts (intercepts calculated using a $15 value per tonne cut-off grade):
Zone From
KIDD011 North 157 265 108 0.21 0.22 0.64 0.32
KIDD011 283 373 90 0.22 0.21 0.64 0.32
KIDD013 North 434 569 135 0.29 0.29 0.88 0.44
KIDD014 Center 74 161 87 0.37 0.23 0.83 0.41
KIDD014 188 *501 313 0.28 0.28 0.84 0.42
KIDD019 North 57 164 107 0.37 0.34 1.05 0.53
KIDD019 216 385 169 0.42 0.45 1.32 0.66
KIDD019 397 *570.8 173.8 0.27 0.37 1.00 0.50
  • $15 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 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 holes terminate in mineralization i.e. mineralization remains open at depth.
  • Yellow Creek: Recent exploration trenching on the Yellow Creek target area has discovered a limited area of outcrop with porphyry-style sheeted quartz veins. Dunav believes that the Yellow Creek target area, located approximately 1,000 meters west from the Kiseljak target area may potentially represent a separate porphyry copper-gold intrusive center. Exploration drilling has recently commenced on the Yellow Creek target area. Refer to Figure 4 for the location of the Yellow Creek target area.
  • Dunav currently has three diamond drill rigs operating on the Tulare copper-gold porphyry project with an additional diamond drill rig expected to arrive during November, 2011.
  • The Kiseljak copper-gold porphyry is a typical calc-alkaline copper-gold porphyry deposit, forming a north plunging (~75°) pipe intruded into amphibolite and biotite-schist country rock and andesitic volcanics/volcaniclastics.
  • The mineralized porphyry system is associated with a series of hornblende-biotite-plagioclase-phyric porphyry dykes. These have been divided into four suites based on texture and association with copper-gold grade and alteration.
  • Mineralization is stockwork-related and disseminated in nature and typical of this style of porphyry. 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 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 native gold associated with gangue minerals. It also occurs as blebs within sulfides, particularly in bornite and chalcopyrite. Gold correlates strongly with copper.
  • The Kiseljak diorite porphyry measures some 800 meters by 300 meters, where it is exposed at surface, and has been traced to a vertical depth of 450 meters to date. Both the porphyry and the surrounding schist have been intruded by a series of intra-mineral to late diorite porphyry phases, which are generally poorly mineralized.
  • Figure 1 shows a plan view of the Kiseljak copper-gold porphyry target area.
  • Dunav has now completed the first diamond drill hole, KIDD014, between the Kiseljak North and Kiseljak South zones, which has demonstrably shown that the Kiseljak target area represents a single, contiguous copper-gold porphyry system.
  • Dunav has completed five diamond drill holes, KIDD011, KIDD013, KIDD015, KIDD016 and KIDD019 on the Kiseljak North zone, which represents the area where the majority of the historic exploration was completed and which have further confirmed the potential for moderate to strong copper-gold mineralization over significant down hole widths.
  • Additionally, Dunav has completed drill hole KIDD012 on the Kiseljak South zone, which was discovered by exploration trenching during late 2010. KIDD012 was terminated prematurely in mineralization due to drill rig performance issues.
  • In line with Dunav's operational objectives, drilling within the Kiseljak North zone has been focused on completing drill holes on the upper and peripheral portions of the target area prior to the onset of inclement weather, as these locations represent areas that are difficult to access safely during the winter period.
  • Refer to Table 1 for a summary of all Kiseljak intersections completed to date, including the results of diamond drill holes KIDD011 to KIDD016 and KIDD019, which are the subject of this release.
  • Refer to Figures 1, 2 and 3 for the location of all diamond drilling to date together with representative cross-sections through the Kiseljak target area.
  • The Tulare project area lies within the Lece Volcanic Complex of southern Serbia; the second largest magmatic complex in Serbia after the Timok Magmatic Complex. The Tulare licence area has been previously mapped by Government agencies and this work also included geochemical and geophysical surveys.
  • The most significant prospect defined during this phase was the Kiseljak copper-gold porphyry occurrence, which was drilled predominantly during the 1980s, culminating in an historical, non-National Instrument 43-101 resource estimate. In total, 32 vertical diamond drillholes, ranging from 109 meters to 450 meters depth, were completed at Kiseljak between 1969 and 1990.
  • The Tulare project 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.
  • Preliminary metallurgical test work, 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 and gravity recovery characteristics were exhibited for both copper and gold, and a copper-gold concentrate with no deleterious elements was produced. Preliminary grinding test work showed a medium to soft mineralization type with a bond work index of approximately 11kwhr/t.
  • Dunav continues to progress a 13,000 meter diamond drilling program to fully define the overall potential of the Kiseljak copper-gold porphyry deposit and determine the geometry of the system. Results to date indicate that the overall tenor of grade within the porphyry mineralization is in line with or slightly above historic results.
  • Additionally, the Yellow Creek target area may represent a separate porphyry copper-gold intrusive center and supports Dunav's belief that the Tulare Porphyry Project represents a potential porphyry cluster of copper-gold mineralized centers. Exploration drilling has recently commenced on the Yellow Creek target area.

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 National Instrument 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 $10.0 million in its treasury at October 31, 2011, which it plans to use for the exploration and development of its mineral projects in Serbia. Dunav's issued and outstanding share capital totals 99,017,749 common shares, of which approximately 47.5% 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, and the potential of the Tulare 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.

Additional maps and tables are available at the following address: http://file.marketwire.com/release/dnvexp.pdf

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