Dunnedin Provides Update on Summer Diamond Exploraton and Annouces Non-Brokered Private Placement
Vancouver, BC, Canada / TheNewswire / August 31, 2015 - Dunnedin Ventures Inc. (the "Company" or "Dunnedin") (TSX-V: DVI) announces that, subject to regulatory approval, it will conduct a non-brokered private placement consisting of both common and flow through shares. The Company also announces completion of Phase 1 field investigations and collection of several tonnes of diamondiferous kimberlite plus approximately two tonnes of mineral concentrates from till sampling.
The Company will issue up to 5,833,333 common shares at a price of $0.06 per share, for gross proceeds of up to $350,000, and 10,000,000 flow-through shares at a price of $0.075 per share for gross proceeds of up to $750,000. Dr. Charles Fipke, Advisor to the Company, intends to subscribe for a portion of the flow through shares.
The Company will use the funds raised to advance the Kahuna project and support its corporate operations.
Update on Phase 1 Field Investigations
The Company also announces it has concluded Phase 1 field investigations at the Kahuna project. Geological teams have collected more than four tonnes of kimberlite from PST, Notch, Kahuna and other targets from which diamonds will be recovered for initial study and characterization. Further details including individual sample weights and diamond recoveries will be provided as results are received from the processing lab. In addition to the kimberlite samples, the Company also collected approximately two tonnes of field-sieved mineral concentrates from 180 till samples testing a large number of new targets across 20 kilometres of priority ground identified from a review of historical data (see news release of June 29, 2015).
The Company will undertake analytical work on kimberlite samples and chemical and morphological classification work on indicator mineral concentrates at CF Mineral Research Ltd. in Kelowna, B.C. Results from the till sampling program will be compared to results from the known diamond-bearing kimberlites to prioritize new targets for follow-up work.
The PST, Notch and Kahuna kimberlites have also been mapped and sites for further bulk sampling have been identified. Early results of this mapping include the projection of the PST kimberlite along strike below shallow gravel cover, mapping of a number of new targets through the identification of linear depressions and other geomorphological features, and selection of a number of recessively eroded pipe or dike blow type targets in areas with known favourable indicator mineral chemistry. Till sample results from Dunnedin's Phase 1 work will refine this targeting.
The Company notes that field investigations were more cost efficient than originally envisioned, as the recent opening of Agnico Eagle Ltd.'s (TSX: AEM) Meliadine mine 25 km north of Rankin Inlet has expanded infrastructure and increased local support services. Upcoming bulk sampling and drill work is expected to be made more cost efficient by utilization of this expanded infrastructure.
Stakeholder Meetings
Dunnedin also reports initial in-person meetings have taken place with the Kivalliq Inuit Association ("KIA") to discuss the Company's work plans at the Kahuna project. Dunnedin will continue to work closely with the KIA, to ensure its operations are respectful of local land use priorities and to ensure maximum participation from local parties in its activities.
Mr. R. Bob Singh, P.Geo., Exploration Manager, is the qualified person responsible for the technical content of this news release.
For further information please contact Mr. Chris Taylor, M.Sc., P.Geo, CEO at 604 681 0084, or Mr. Allan Barry Laboucan, Special Advisor at 604 505 4753.
On behalf of the Board of Directors
Chris Taylor
Chief Executive Officer
About the Kahuna Project
Kahuna is an advanced stage high grade diamond project located near Rankin Inlet, Nunavut. Three main diamondiferous kimberlite dikes, Kahuna, PST and Notch, have been drilled and bulk sampled and returned grades of 0.85 to 2.18 carats per tonne. An Inferred Resource released by Dunnedin showed over 4 million carats of macrodiamonds (+0.85 mm) at a grade of 1.01 carats per tonne had been defined along the partial strike length of the Kahuna and Notch kimberlites through shallow drilling. The largest diamond recovered was a 5.43 carat stone from the Kahuna dike that had been broken during the sample preparation process and was reconstructed as having an original size of 13.42 carats. The dikes have comparable strike lengths, widths and grades to producing diamond mines and occur within a broad network of largely untested geophysical targets, overlain by dense diamond indicator mineral trains.
Neither 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 release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
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