Dunav Resources Ltd.
TSX VENTURE : DNV

Dunav Resources Ltd.

February 22, 2012 10:00 ET

Dunav Resources Provides Exploration Update on the Tulare Copper-Gold Porphyry Project, Serbia

LONGUEUIL, QUEBEC--(Marketwire - Feb. 22, 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 Kiseljak and Yellow Creek copper-gold porphyry target areas.

  1. HIGHLIGHTS
  • Resource definition diamond drilling (nominal 80 meter by 80 meter 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.
  • Drilling of the Kiseljak target area returned the following moderate to strong, copper-gold intercepts (intercepts calculated using an in situ $15 value per tonne cut-off grade):
Hole
ID
Zone From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Cu
(%)
AuEq
(g/t)
CuEq
(%)
KIDD017* North 240 424.7 184.7 0.30 0.36 1.02 0.51
KIDD021* North 319 644.3 325.3 0.33 0.35 1.02 0.51
KIDD022 North 106 313 207 0.33 0.33 0.99 0.49
KIDD022 North 363 528 165 0.36 0.39 1.14 0.57
KIDD023* North 406 518.7 112.7 0.42 0.35 1.12 0.56
KIDD024* North 0.6 56 55.4 1.03 0.56 2.15 1.07
KIDD024* North 100 247 147 0.51 0.47 1.44 0.72
KIDD024* North 393.9 536.5 142.6 0.43 0.53 1.48 0.74
KIDD028 North 4 207 203 0.38 0.38 1.13 0.57
KIDD028 North 308.3 437 128.7 0.38 0.41 1.19 0.59
KIDD029* North 0 22 22 0.34 0.28 0.89 0.44
KIDD029* North 28 126 98 0.47 0.38 1.24 0.62
KIDD029* North 231 481.2 250.2 0.24 0.32 0.88 0.44
  • $15/tonne in situ 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 holes terminate in mineralization i.e. mineralization remains open at depth.
  • Yellow Creek: The final exploration diamond drill hole of 2011 intersected strong, porphyry-style mineralization within diorite over the final 10.9m of the drill hole. Attempts to re-enter the drill hole in January 2012 were unsuccessful and additional drill pads are currently being prepared to follow-up on what the Company believes is an important event in the exploration of the Yellow Creek target area. The drill intercept calculated using an in situ $15 value per tonne cut-off grade:
Hole
ID
From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Cu
(%)
AuEq
(g/t)
CuEq
(%)
YCDD005* 397 407.9 10.9 0.70 0.41 1.53 0.76
  • $15/tonne in situ 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 terminate in mineralization i.e. mineralization remains open at depth.
  • Dunav currently has five diamond drill rigs on the Tulare copper-gold porphyry project with an additional diamond drill rig expected to arrive during March, 2012. Very cold daily maximum temperatures (commonly below -20°C) and very thick snowfalls have resulted in all drilling activities being suspended in late January. Drilling activities resumed on February 17, 2012.
  1. GEOLOGY AND MINERALIZATION STYLE
  • The Kiseljak copper-gold porphyry is a typical calc-alkaline copper-gold porphyry deposit, with a north plunging pipe-like geometry, 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 is 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 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 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.
  1. DRILLING AT KISELJAK AND YELLOW CREEK
  • Kiseljak: Dunav has now completed an additional thirteen diamond drill holes; KIDD017, KIDD018 and KIDD020 to KIDD030. Drilling between the Kiseljak North and Kiseljak South zones continues to confirm that the Kiseljak target area represents a single, contiguous copper-gold porphyry system.
  • Refer to Table 1 for a summary of all Kiseljak significant intersections completed to date, including the results of diamond drill holes KIDD017, KIDD018 and KIDD020 to KIDD030, which are the subject of this release.
  • The drill hole data suggests that the great majority of each hole drilled is mineralized. A summary of all Kiseljak significant intersections completed to date, showing the proportion and tenor of the weighted average data at different value per tonne cut offs is shown below:
Cut Off Mineralized
Interval per Hole
VPT Au Cu AuEq CuEq
(m) ($) (g/t) (%) (g/t) (%)
$7.50 334 29 0.24 0.25 0.74 0.37
$10.00 302 31 0.27 0.27 0.81 0.41
$15.00 249 36 0.31 0.32 0.95 0.48
$20.00 212 40 0.35 0.35 1.05 0.53
$25.00 182 43 0.38 0.37 1.12 0.56
$30.00 148 48 0.43 0.41 1.25 0.63
  • Weighted average hole depth is 415m.
  • Total drill meterage to date (KIDD001 to KIDD030) is 12,464m in 30 drill holes.
  • $15/tonne in situ 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
  • Yellow Creek: exploration trenching on the Yellow Creek target area during 2011 discovered a limited area of outcrop with porphyry-style, stockwork quartz veining located approximately 800 meters southwest of the Kiseljak target area. Initial drilling (YCDD001) in this area returned 105.6m @ 0.32g/t Au, 0.12% Cu (from 6.4m).
  • The Yellow Creek target area is associated with a stronger and larger ground magnetic anomaly compared to the magnetic anomaly associated with Kiseljak.
  • Additional exploration drilling (refer to Figure 3) has been focused on vectoring in to the potential center of the Yellow Creek porphyry system. Most drill holes have intersected diorite porphyry dykes associated with low copper and gold values that intrude the basement schists in the area. The Company believes that the recent strong, porphyry-style, mineralized intersection from YCDD005 strongly indicates the potential for an additional copper-gold porphyry center to exist within the Yellow Creek target area.
  • Dunav plans to allocate an additional diamond drill rig to the Yellow Creek program bringing the total to two drill rigs.
  • Refer to Table 2 for a summary of all Yellow Creek significant intersections completed to date, including the results of diamond drill holes YCDD001 to YCDD005, 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 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 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, 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 the resource definition diamond drilling program to fully define the overall size and potential of the Kiseljak copper-gold porphyry deposit and to 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; however, drilling by Dunav indicates that the 'footprint' of the Kiseljak deposit is much larger than the historical non NI 43-101 compliant estimate.
  • Additionally, the Yellow Creek target area has the potential to 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.
  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 $6.0 million in its treasury at January 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 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 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.

Figures 1, 2 and 3 and tables 1 and 2 are available at the following link: http://media3.marketwire.com/docs/dnv0222.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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