Golden Dory Resources Corporate and Project Update

Tag : quartzite

GANDER, NL -- (Marketwire) -- 09/25/08 -- Golden Dory Resources("Golden Dory") is now trading under the ticker symbol ( TSXV:FA ). Golden Dory received final approval from the TSX VentureExchange and recently completed the qualifying transaction (reversetakeover of 540 Capital Corporation of Calgary). The company hascommenced exploration programs on its portfolio of uranium, copperand gold properties in the Province of Newfoundland & Labrador,Canada. Golden Dory recently completed a $1.83 million financingthrough Canaccord Capital Corporation and MPartners consisting ofthe sale of flow through and non flow through shares. The company'skey mineral properties are described below. Technical reports onall key properties are available on SEDAR.
PROJECTS
Golden Dory has interests in 5 high quality projects in the miningfriendly jurisdiction of Newfoundland and Labrador, Canada,including 100% interests in the Burin (U), Sterling (Cu/Co), andBrady (Au) projects. The company also holds a 50% interest in theGabbro Lake (U) property, and a 30% interest in the Portage Lake(Ni/Cu) property.
Burin Project
The Burin Project consists of 2759 mineral claims covering 68,975hectares in the Fortune Bay and Burin Peninsula regions of southernNewfoundland, near the former mining town of St. Lawrence, whereAlcan and others mined fluorspar for over 40 years. The property isunderlain by late Neoproterozoic volcanic and sedimentary rocksthat are capped unconformably by a Lower Paleozoic shale dominatedcover sequence. These units have been intruded by the metalliferousDevonian aged alaskitic St. Lawrence Granite, which is host tonumerous base and precious metal occurrences as well as the pastproducing fluorspar deposits at St. Lawrence. The St. LawrenceGranite is similar in many respects to the host rocks at theRossing uranium mine in Namibia, one of the world's largestproducers of uranium. Extrusive phases of the St. Lawrence graniteare also prospective for volcanic hosted uranium as at the largeStreltsovska complex in Russia. Newly discovered base metalmineralization is also being evaluated.
In the 1970s, previous workers identified numerous occurrences ofmoderately to strongly radioactive bedrock returning up to 6500counts per second (cps) and where historical grab sampling in theLawn area returned up to 0.33% U3O8 from the Radex showing. Checkassaying by Golden Dory personnel returned 0.211% U3O8 from theRadex showing. Numerous geochemical and radiometric anomaliesremain unexplained from the 1970s work and reconnaissanceexploration by Golden Dory has confirmed large areas of anomalouslyradioactive intrusive rock using hand held RS 120 Super Scints andRS 125 Super Specs ranging up to 37,000 cps over a backgroundranging from 200-400 cps. The 2007 airborne magnetic andradiometric survey carried out over portions of the Burin Projectby NovaTem on behalf of Golden Dory has been screened for highpriority targets for an aggressive ground follow up program whichis currently underway. Reconnaissance rock sampling results arecurrently being compiled and the data will be released in the nearfuture.
Brady Property
The Brady property consists of 419 claims totaling 10,475 hectareslocated within 3 kms (west) of Route 360 in central Newfoundland.The property lies within the Central Mobile Belt and is underlainby Cambro-Ordovician ophiolitic rocks (serpentinites) of theDunnage Zone and metasedimentary rocks of the Gander Zone.
In 2002, gold bearing float boulders assaying up to 4.0 g/t Au werediscovered by Datan Resources near the north bank of the NorthwestGander River, (Golden Dory has not verified the results). Theproperty was subsequently optioned to Linear Resources who carriedout a program of geological, geochemical and geophysical surveyingfollowed by a 15 hole, 2500 meter drill program in 2003/2004. Thedrilling was successful in defining a mineralized zone (ReidPorphyry) consisting of disseminated pyrite, arsenopyrite andchalcopyrite in brecciated and quartz veined quartz porphyry andmafic volcanic rocks. Drill intercepts including 41.4 m grading 1.1g/t Au, and 20 meters grading 1.6 g/t Au were returned fromseparate drill holes (Linear Resources press release; results notverified by Golden Dory). The mineralization has not yet beenclosed off and is open for expansion. The potential for additionalmineralized intrusive bodies is considered excellent. In spite ofits success, Linear Resources relinquished the claims deciding tofocus on its Mexican assets. Golden Dory obtained the Bradyproperty from Datan Resources in 2007.
The Brady property is contiguous with the Huxter Lane propertycurrently the subject of a joint venture between Yamana Gold andParagon Minerals Corporation. Drilling has verified the existenceof a similar mineralized intrusive to that of the Brady propertyand has reported drill intercepts of 35 meters grading 2.2 g/t Au(Paragon Minerals website). The partners are currently conducting athird phase of drilling.
A technical report dated January 24, 2008, on the Brady Property byJames L. Harris, P. Geo., recommends further work at the BradyProperty including line cutting, soil geochemistry, evaluation ofexisting geophysical surveys, additional induced polarization (IP)surveying and trenching. A diamond drilling program is currentlybeing proposed to verify and expand on the Linear Resourcesdrilling program from 2003. Golden Dory is actively seeking a jointventure partner to advance the project.
Sterling Property
The Sterling property is located on the northeast coast ofNewfoundland, near the community of Springdale. The propertyconsists of 195 claims (4,875 hectares), and covers a series ofdeveloped copper prospects including the Sterling and Lady Pondmines both of which were discovered in the late 1880s and fromwhich small tonnages ( < 500 tons) were mined from surface. TheSterling Property lies within the Notre Dame Subzone of the DunnageZone and is underlain by Cambro-Ordovician ophiolitic rocks of theLushs Bight Group, host to approximately 100 volcanogenic sulphideoccurrences including the former Little Bay, Whalesback, and LittleDeer mines.
In 1964, Brinex initiated an extensive exploration program in theSterling area which led to the drilling of 51 holes whichintersected stringers, veinlets and zones of massive sulphide.Significant results include up to 5.5% Cu over 4.4 meters including13.8% Cu over 1.4 meters and wider intervals returning 0.80% Cuover 30.48 meters including 3.10% Cu over 3.04 meters (results arehistorical in nature and have not been verified by Golden Dory).The Sterling deposit has been drilled to a depth of 250 meters andremains open and appears to be thickening at depth.
Assay results from samples collected in 2007 by Golden Dorypersonnel from the Sterling prospect returned up to 9.3% Cu, 0.059%Co and 7.88 g/t Ag, and up to 6.8% Cu, 0.137% Co and 6.51 g/t Agfrom the Lady Pond Mine (assaying carried out at Eastern AnalyticalLimited*, in Springdale Newfoundland). The reconnaissance samplingwas successful in returning previously unrecognized cobalt valuesup to 0.137% Co and represents potential for significant by productcredit. Golden Dory is currently completing a deep penetratingairborne EM geophysical survey to test for prospective massivesulphide targets deeper than levels previously tested, as well asnew zones lying at shallow depths elsewhere on the property. GoldenDory will be seeking a partner to jointly explore the property.
Other Properties
Golden Dory also has the right to earn interests in two otherprojects in Newfoundland and Labrador. These properties include thePortage Lake (Ni/Cu) property in western Newfoundland where GoldenDory can earn a 30% interest (Benton Resources Corp will earn a 70%interest); and the Gabbro Lake (U) property in western Labradorwhere Golden Dory can earn a 50% interest in the property withMetal Creek Resources holds the remaining 50%.
Portage Lake Property
Golden Dory can earn a 30% interest in the 593 claim (148 squarekilometer) Portage Lake Property from local prospectors Allan Keatsand Eddie Quinlan. The property is located in western Newfoundlandapproximately 100 kilometers southwest of the port city of CornerBrook. The claims cover mafic intrusive rocks of the OrdovicianSouthwest Brook Complex and are deemed prospective for nickel andcopper mineralization. Selected samples collected by Golden Dorypersonnel from gossanous outcrops on the property have returnedgrab sample assays of up to 0.25% Ni and 0.32% Cu (EasternAnalytical Limited*). The first year Phase 1 exploration programhas commenced and an airborne magnetic and electromagnetic surveyis currently being evaluated for follow up prospecting and rocksampling. The Portage Lake property shares similarities withseveral deposits in Scotland including the Arthrath deposit wherehistorical drilling by Rio Tinto returned 32 meters of 0.62% Ni/Cu(results taken from the British Geological Survey publication"Exploration for Metalliferous and Related Minerals in Britain: AGuide." 2nd Ed., 2000).
Gabbro Lake Property
Golden Dory is a 50% joint owner with Metals Creek Resources in the393 claim (9825 hectares) Sims Ridge Property situated in westernLabrador. The claims lie approximately 130 kilometers northeast ofLabrador City, and are best accessed by fixed or rotary wingaircraft. The Sims Ridge Property area has been described by theNewfoundland and Labrador Department of Natural Resources asgeologically analogous to the Athabasca Basin and thereforepossibly prospective for unconformity type uranium deposits. Theproperty is underlain by a sequence of Proterozoic sediments, theSims Formation, which is comprised of conglomerate, arkose andquartzite, which overlies deformed metasedimentary rocks of thePaleoproterozoic Labrador Trough.
Limited work in the early 1980s by Labrador Exploration and Miningidentified a boulder train of radioactive (up to 8500 cps) floatassaying up to 0.18% U3O8 (historical in nature and not verified byGolden Dory Resources). The source of the mineralized float has notbeen determined. The 2008 program will consist of an airborneradiometric survey followed by prospecting and sampling utilizing acrew based in Labrador City. Metal Creek Resources is the projectoperator.
Directors and Management
Kevin D. Keats, President and Director - Kevin has over 16 years'experience in the mineral industry and is a co-recipient of the2006 Bill Dennis Prospector of the Year Award. Kevin is Presidentof A.S.K. Prospecting and Guiding, a Newfoundland based mineralexploration service company operating globally as well as inNewfoundland and Labrador. Kevin is currently a director of SpruceRidge Resources (SHL-TSX.V).
John Ryan, CGA, CFO, Director - John has over 30 years of corporateand financial management experience and since 2000 has beenPresident, CEO and a Director of Spruce Ridge Resources, an Ontariobased mineral exploration company focused on gold and uranium.
Stephen Stares, Director - Stephen has over 15 years' experience inthe mineral industry and is currently President of Benton ResourcesIncorporated, an Ontario based mineral exploration company focusedon nickel copper and PGEs.
Dean Fraser, P. Geo., Director - Dean is a professionalgeophysicist with 15 years' industry experience nationally as wellas internationally, and is currently serving as Exploration Managerfor Bayswater Uranium, a global uranium explorer.
Cyril Reid, Director, Operations Manager - Cyril is CEO ofprivately owned Datan Resources, and has 15 years' experience inthe mineral industry. Datan has an extensive portfolio ofexploration properties in Newfoundland and Labrador.
Roland Quinlan, Director - Roland is President of Quest Inc., aNewfoundland based mineral exploration company and has over 15years' experience in the sector.
Timothy Froude, P. Geo., VP Exploration - Tim has over 20 years'experience in the mineral exploration industry and has served as asenior geologist and VP Exploration for several highly regardedexploration companies including Crosshair Exploration & MiningCorp., and Cornerstone Resources Inc.
David Evans, M.Sc., P. Geo., Exploration Manager - David has over25 years' experience most of which as a senior researcher with theNewfoundland Department of Natural Resources focusing on gold andbase metal deposits in central Newfoundland and is widelyconsidered as one of the leading experts on the metallogeny ofNewfoundland.
Spencer Vatcher, P. Geo., Lands Manager - Spencer has over 20years' experience in the exploration sector including 13 years withthe Newfoundland Department of Natural Resources. Spencer mostrecently served as manager of the Mineral Incentive Program, anindustry support program offered to junior exploration companies.
Gordon Fretwell, LLB., Corporate Secretary - Gord has beenpracticing corporate law for nearly 30 years of which the past 16have been spent specializing in the natural resources sector. Hecurrently sits as a director or senior officer of several highprofile companies including Northern Dynasty Minerals Ltd., BentonResources Corporation, and International Royalty Corporation.
* Eastern Analytical Limited has been in operation for more than 30years and is well known as a reputable and dependable companythroughout the Canadian mining and mineral exploration industry.Eastern uses government certified standards prepared by Canmet aswell as duplicates, blanks and internal standards.
**Accurassay Laboratories is a privately owned Canadian analyticallaboratory offering accredited mineral analysis to the mining andexploration industry. The company offers a variety of analyses manyof which, including gold, platinum, palladium, copper, nickel, andcobalt, are accredited by the Standards Council of Canada underISO/IEC Guideline 17025.
This news release has been reviewed and approved by Timothy Froude,P. Geo., a "Qualified Person" under National Instrument 43-101.
For further information contact Kevin D. Keats, President and CEOof Golden Dory at (709) 256-4201.
Investors are cautioned that trading in the securities of theCorporation should be considered highly speculative. The TSXVenture Exchange Inc. has neither approved nor disapproved thecontents of this press release. Except for historical informationcontained herein, this news release contains forward-lookingstatements that involve risks and uncertainties. Actual results maydiffer materially. Golden Dory will not update theseforward-looking statements to reflect events or circumstances afterthe date hereof. More detailed information about potential factorsthat could affect financial results is included in the documentsfiled from time to time with the Canadian securities regulatoryauthorities by Golden Dory.
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