Dunav Resources Ltd.
TSX VENTURE : DNV

Dunav Resources Ltd.

April 10, 2012 07:50 ET

Dunav Resources Discovers the Yellow Creek Copper-Gold Porphyry: YCDD008 Intersects 380m @ 0.48g/t Au, 0.37% Cu (from 20m) and 241m @ 0.36g/t Au, 0.37% Cu (from 426m) on the Tulare Project

LONGUEUIL, QUEBEC--(Marketwire - April 10, 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, including drill results from the Yellow Creek and Kiseljak copper-gold porphyry target areas.

"Late last year we drilled a hole (YCDD005) that we felt, showed the tremendous potential of the Yellow Creek target area to host an additional copper-gold porphyry center. This follow-up drill hole has clearly demonstrated that belief," said James Crombie, President and CEO of Dunav. "We are currently in the final stages of completing the nearby Kiseljak copper-gold porphyry resource definition drilling program, following which all four diamond drill rigs will be relocated to Yellow Creek to support the two diamond drill rigs which are currently establishing the potential size and footprint of the newly discovered Yellow Creek copper-gold porphyry-style mineralization. In addition, the first deep drill hole completed into Kiseljak clearly indicates that the system extends to, and remains open, at depth."

  1. HIGHLIGHTS
  • Yellow Creek: YCDD008 returned the following strong to moderate intercepts, calculated using a 0.19% CuEq cut-off grade:
Hole ID From (m) To (m) Interval (m) Au (g/t) Cu (%) AuEq (g/t) CuEq (%)
YCDD008 20 400.0 380 0.48 0.37 1.22 0.61
YCDD008 406 416.0 10 0.21 0.24 0.70 0.35
YCDD008 426 667.0 241 0.36 0.37 1.10 0.55
YCDD008* 673 691.5* 18.5 0.29 0.24 0.77 0.38
    • 0.19% 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.
  • Kiseljak: KIDD040 was designed to test the depth potential of copper-gold mineralization at Kiseljak approximately 350 meters below the current level of drilling. The drill hole returned the following strong to moderate intercepts and remains open at depth, calculated using a 0.19% CuEq cut-off grade:
Hole ID From (m) To (m) Interval (m) Au (g/t) Cu (%) AuEq (g/t) CuEq (%)
KIDD040 11 312 301 0.73 0.56 1.85 0.93
KIDD040 318 620 302 0.38 0.39 1.17 0.58
KIDD040 626 657 31 0.26 0.32 0.91 0.45
KIDD040* 693 829* 136 0.22 0.31 0.85 0.42
    • 0.19% 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.
  • Resource definition diamond drilling (nominal 80 meter by 80 meter surface grid spacing) on the Kiseljak copper-gold porphyry target area commenced during May, 2011 and continues to confirm moderate to strong porphyry-style mineralization within the currently identified 800 meter by 300 meter diorite porphyry footprint outlined to date.
  • Dunav plans to be in a position to release an initial Canadian National Instrument 43-101 Compliant Resource Estimate on the Kiseljak copper-gold porphyry target area during August, 2012. Following receipt of the Resource Estimate, Dunav will initiate a Preliminary Economic Assessment on the Kiseljak copper-gold porphyry.
  • Dunav also plans to outline, with drilling, the economic potential of the newly discovered Yellow Creek copper-gold porphyry.
  • Further, exploration will continue to follow-up an additional two target areas on the property, which have shown good indications of porphyry-style mineralization.
  • The Company has budgeted for 45,000 meters of drilling on the Tulare Porphyry Project during 2012.
  • Dunav currently has six diamond drill rigs operating on the Tulare Porphyry Project.
  1. GEOLOGY AND MINERALIZATION STYLE
  • The Kiseljak and Yellow Creek porphyries represent typical calc-alkaline copper-gold porphyry styles of deposit, 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 grade 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. 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 Kiseljak and Yellow Creek copper-gold porphyry target areas.
  1. DRILLING AT YELLOW CREEK AND KISELJAK
Yellow Creek:
  • Exploration trenching on the Yellow Creek target during summer 2011 discovered a limited area of outcrop with porphyry-style, stockwork quartz veining located approximately 800 meters southwest of the Kiseljak target. Initial drilling (YCDD001) in this area returned 105.6m @ 0.32g/t Au, 0.12% Cu (from 6.4m).
  • Exploration drilling to date has since been focused on attempting to vector towards the potential center of the Yellow Creek porphyry system. The Company believes that the recent strong, porphyry-style, mineralized intersection at the end of YCDD005 (10.9m @ 0.70g/t Au, 0.41% Cu (from 397m)) indicated the potential for an additional copper-gold porphyry center to exist within the Yellow Creek target area.
  • YCDD008: was collared approximately 90m vertically above drill hole YCDD005 and was designed to follow-up the strong copper-gold porphyry-style mineralization intersected at depth in YCDD005. The drill hole intersected copper-gold mineralized diorite porphyry dykes within the host volcanics (primarily crystal tuffs) before intersecting the 'top' of the Yellow Creek porphyry at 53 meters down hole depth. The drill hole continued to intersect moderate to strongly, mineralized and potassic altered, diorite porphyry together with 'rafts' of metamorphic basement (also mineralized) to the final hole depth of 691.5 meters. The mineralization remains open at depth.
  • The Yellow Creek target area is associated with a stronger and larger ground magnetic anomaly when compared to the magnetic anomaly associated with Kiseljak (refer to Figure 1).
  • Refer to Table 2 for a summary of all Yellow Creek significant intersections completed to date.
Kiseljak:
  • KIDD040 is an 'off-section' drill hole designed to pass through the 'higher grade' zone of mineralization which outcrops within the center of the Kiseljak target. The upper portion of the drill hole intersected 301m @ 0.73g/t Au, 0.56% Cu (from 11m) and shows the excellent potential for higher metal grades to be realized earlier in any potential production scenarios.
  • KIDD040 was further designed to test the depth potential of the Kiseljak copper-gold mineralization drilled to date. The drill hole has effectively extended the previous depth of mineralization (approximately 450 meters below surface) by 45% to approximately 800 meters below surface. The copper-gold mineralization remains open at depth.
  • Refer to Table 1 for a summary of all Kiseljak significant intersections completed to date.
  • Refer to Figures 1 and 2 for the location of all diamond drilling to date together with a representative cross-section through the Kiseljak target area.
  1. DISCUSSION
  • 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. 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 originally drilled predominantly during the 1980s, culminating in an historical resource estimate that is not compliant with Canadian National Instrument 43-101 ("NI 43-101"). In total, thirty-two vertical diamond drillholes, ranging from 109 meters to 450 meters depth, were completed at the Kiseljak North zone 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 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. 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 planned.
  • Dunav continues to progress the Kiseljak resource definition diamond drilling program to fully define the overall size and economic potential of the Kiseljak copper-gold porphyry deposit.
  • Additionally, Dunav plans to thoroughly drill test the newly discovered Yellow Creek copper-gold porphyry target area in order to determine the economic potential of this area 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
  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 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 $7.5 million in its treasury at March 31, 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 104,017,749 common shares, of which approximately 45.4% 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/Tulare_Exploration_Update.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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