DNI reports initial winter drilling results and upgrades potential tonnages for the Buckton and Asphalt Zones*, polymetallic black shale projects, Athabasca region, Alberta
TORONTO, July 15, 2011 /CNW/ --
DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt)
TORONTO, July 15, 2011 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven)(DG7:FSE) is pleased to report initial results from the winter drilling program
over the Asphalt and Buckton Mineralized Zones* at its Alberta
polymetallic black shale Property.
The drilling program achieved its two principal objectives, namely: (i)
to complete the necessary drilling over at least one of the two Zones*,
the Buckton Mineralized Zone*, to classify an initial portion into an
inferred mineral resource; and (ii) to collect sufficient drill core
sample material for expanded leaching testwork which have so far relied
on samples collected by surface trenching.
Detailed logging of the core was completed in May, and analytical
results recently received for all intercepts of the Second White
Speckled Shale intersected in the holes confirm continuity of
mineralization over the areas drilled, demonstrating good uniformity of
bulk grades over the intersections within the Buckton Zone* and also
between bulk grades of drill intercepts from the Asphalt and the
Buckton Zones* which are approximately 30km apart. The analytical
results also indicate that previous estimates, based on historic data,
of potential tonnages which might be hosted in the Asphalt and Buckton
Mineralized Zones* are understated by 10%-20% and are revised below.
As previously announced (press Mar7/2011), eight vertical HQ diameter
holes were cored during the 2010-2011 winter with an aggregate of
approximately 650m, testing portions of the Asphalt and Buckton
polymetallic Zones* which are partly exposed or are otherwise near
surface. All, but one, of the holes successfully cored across the
Second White Speckled Shale Formation which is the primary host to
polymetallic mineralization at the Property. This is consistent with
downhole logs from 591 oil/gas wells across the Property compiled by
DNI indicating that this Formation extends under DNI's entire 2,720
square kilometer Property. One of the holes was lost in overburden in
bad ground.
The drilling program was implemented on behalf of the Company by Apex
Geoscience Ltd, Edmonton, under the supervision of Mr. Michael Dufresne
PGeo who also oversaw logging of the core, as the Qualified Person, and
will be similarly responsible for preparation of the Buckton
Mineralized Zone* resource study which is in progress. Plans are to
continue advancing this Zone* toward a scoping study in 2012.
Particulars of the drilling over the two Zones* are outlined below.
Buckton Mineralized Zone* (formerly the Buckton Potential Mineral
Deposit*):
Five of the holes drilled were localized over approximately 3 square
kilometres of the Buckton Mineralized Zone* to enable completion of a
resource study to classify an initial portion of the Zone* (previously
named the Buckton Potential Mineral Deposit*) into an inferred resource
compliant with National Instrument 43-101 ('NI-43-101'). The current
drilling by DNI comprises in-fill drilling at a spacing ranging
240m-675m, to confirm mineralization in the vicinity of historic hole
7BK04 to begin in-filling the 2.5km distance toward historic hole 7BK05
to the north. Based on extrapolations from historic drilling and
surface work, metallic mineralization is believed to continue for
approximately 2km to the north of the area drilled by DNI, and an
additional 5km to its south, both of which offer high priority
locations for additional drilling to classify additional future
resources.
As outlined in the technical report for the Property dated Oct28/2008
(the 'SBH Technical Report', announced Nov10/2008), the Buckton
Potential Mineral Deposit* holds potential for hosting 1.2-1.3 billion
short tons of polymetallic mineralization extending over 26 square
kilometers and is open in three directions. The Buckton Potential
Mineral Deposit* was recently renamed as the Buckton Mineralized Zone*
to harmonize nomenclature with Jun30/2011 amendments to NI-43-101.
Although based on drilling and nearby outcrop exposures, the Buckton
Mineralized Zone*, as better outlined in the SBH Technical Report, is a
target for further ongoing exploration, it is conceptual in nature as
there has been insufficient drilling conducted over the Zone* to define
a mineral resource, and it is uncertain whether further drilling will
define a mineral resource over the Zone*.
DNI's current drilling reinforces geological extrapolations made in the
SBH Technical Report which suggest continuity of metallic
mineralization within the Buckton Mineralized Zone* between widely
spaced historic drilling. DNI intends to advance exploration of this
Zone* through additional driling intended to capture additional
mineraized volumes into classified resources. An initial resource study
for a portion of this Zone* is in progress.
Details of the drilling completed over the Buckton Mineralized Zone*
(holes 11BK01-11BK05) are tabulated below, showing analytical results,
as well as comparative grades from adjacent historic holes 7BK04 and
7BK05. (See also www.dnimetals.com/images/black_shales/bmz_2011.pdf for drill hole locations).
DNI has to date focused mainly on Mo-Ni-U-V-Zn-Cu-Co-Ag as the metals of
interest in the Speckled Shale over the Property. While none of these
metals is present in the shale in high enough concentration to be a
'pay' metal by itself, the metals collectively represent sufficient
in-situ value on a combined basis to place the Zones* discovered in the
shale within reach of viability as long term sources of metals provided
the metals are collectively recovered. DNI's leaching testwork over the
past two years has confirmed collective recoverability of the group of
metals, and indicated that additional metals of value are also
incidentally extracted from shale as co-products which include rare
earths. To that end, Li grades are also tabulated below given its
incidental recovery during DNI's leaching tests as a co-product which
can also proxy for the similar recovery of several other rare earth
elements from the shale. Rare earth element recoveries will be
announced at a future date once their analytical data has been fully
assessed.
________________________________________________________________________
| Hole |Depth|Zone Width** (m) | Weighted Average Grade (ppm) |Specific|
| | | | *** | |
|________|_____|_________________|______________________________|________|
| # | (m) | From-To |Width|Mo|Ni |U | V |Zn |Cu|Co|Ag |Li|Gravity |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
|11BK01 |80.5 | 46.6-66.9 |20.3 |77|162|33|771|302|77|25|0.7|56| 2.44 |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
|11BK02 |101.5| 67.0-89.8 |22.8 |83|171|33|764|299|78|25|0.8|59| 2.43 |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
|11BK03 |86.0 | 41.2-61.0 |19.9 |71|138|23|709|258|68|23|0.7|56| 2.47 |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
| 11BK04 |91.0 | 54.5-68.0 |13.5 |62|140|26|755|277|75|24|0.7|53| 2.47 |
| 11BK05 |98.5 | 61.9-74.5 |12.6 |53|124|22|696|253|70|22|0.6|58| 2.48 |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
|7BK04 |158.2|120.6-141.7|21.1 |67|129|27|645|282|73|23|0.3|na| na |
|historic| | | | | | | | | | | | | |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
|7BK05 |101.2| 76.8-95.2 |18.4 |77|152|25|722|318|77|24|0.7|na| na |
|historic| | | | | | | | | | | | | |
|________|_____|___________|_____|__|___|__|___|___|__|__|___|__|________|
______________________________________________________________________________
| Hole |Depth|Zone Width** (m) | Weighted Average Grade (lb/st) *** |
|________|_____|_________________|_____________________________________________|
| # | (m) | From-To |Width| Mo | Ni | U | V | Zn | Cu | Co | Li |
| | | | |[MoO3]| |[U3O8]|[V2O5]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
| 11BK01 |80.5 | 46.6-66.9 |20.3 | 0.15 |0.32| 0.07 | 1.54 |0.60|0.15|0.05|0.11|
| | | | |[0.23]| |[0.08]|[2.75]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
| 11BK02 |101.5| 67.0-89.8 |22.8 | 0.17 |0.34| 0.07 | 1.53 |0.60|0.16|0.05|0.12|
| | | | |[0.25]| |[0.08]|[2.72]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
| 11BK03 |86.0 | 41.2-61.0 |19.9 | 0.14 |0.28| 0.05 | 1.42 |0.52|0.14|0.05|0.11|
| | | | |[0.21]| |[0.05]|[2.52]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
| 11BK04 |91.0 | 54.5-68.0 |13.5 | 0.12 |0.28| 0.05 | 1.51 |0.55|0.15|0.05|0.11|
| | | | |[0.19]| |[0.06]|[2.69]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
| 11BK05 |98.5 | 61.9-74.5 |12.6 | 0.11 |0.25| 0.04 | 1.39 |0.51|0.14|0.04|0.12|
| | | | |[0.16]| |[0.05]|[2.48]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
|7BK04 |158.2|120.6-141.7|21.1 | 0.13 |0.26| 0.05 | 1.29 |0.56|0.15|0.05| na |
|historic| | | |[0.20]| |[0.06]|[2.30]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
|7BK05 |101.2| 76.8-95.2 |18.4 | 0.15 |0.30| 0.05 | 1.44 |0.64|0.15|0.05| na |
|historic| | | |[0.23]| |[0.06]|[2.57]| | | | |
|________|_____|___________|_____|______|____|______|______|____|____|____|____|
**All holes are vertical; Widths reported are true widths; m=metres;
Drill core sampled at a standard 0.5m interval; Data for historic holes
based on sampling under geologic control with sample lengths ranging
0.05m-1m averaging apprx 0.6m. See SBH Technical Report available from
DNI's website for additional historic work details; Zone width
represents true thickness of the flat-lying Second White Speckled Shale
Formation which hosts the polymetallic mineralization within its
contacts.
***Analyses are weighted averages over the entire intercept of the
Second White Speckled Shale Formation based on lithogeochemical
characterization; Mo, U and V grades also restated in equivalent oxide;
lb/st=pounds per short ton; Analyses by Activation Labs, Ancaster, ON;
U and Li analyses by INA, all other metals by ICP or ICP/MS following
4-acid digestion; Specific Gravity by Gravity methods; In addition to
analytical blanks and standards utilized by Actlabs as part of its
analytical quality assurance and quality control ('QA/QC') protocols,
DNI's QA/QC parameters consist of duplicate analyses as follows: one
matrix-matched analytical blank per 10 samples, one duplicate analysis
of pulverized pulp per 10 samples, and one duplicate subsample from
coarse fraction per 10 samples.
In addition to confirming good continuity of mineralization and
uniformity of bulk grade over the portion of the Zone* tested, the
recent drill results also indicate that tonnages previously
estimated for the Buckton Mineralized Zone* in the SBH Technical
Report, relying on historic information, are understated. While an
estimated specific gravity of 2.1, per historic work records, was
relied upon by the SBH Technical Report to estimate potential tonnages
which might be hosted in the Buckton Mineralized Zone*, specific
gravity of the Speckled Shale as measured from the above drill core
samples averages approximately 2.45 and, accordingly, revises potential
tonnages estimated for the Buckton Mineralized Zone* from 1.2-1.3
billion short tons of polymetallic mineralization to 1.4-1.5 billion
short tons.
The above specific gravity figures are consistent with results from
surface sampling completed by DNI during the past two years. These
revisions will be incorporated into revisions to the SBH Technical
Report which are in progress to also incorporate and consolidate other
exploration results accumulated by the Company since 2008 which have to
date been reported only in press releases.
Additional planned holes were necessarily deferred due to weather and
logistical constraints, including holes intended to verify projected
extensions of the Buckton Mineralized Zone* over at least 6km to its
north and south, as suggested by oil/gas downhole well logs in the area
which report sections of the Speckled Shale Formation over a large area
extending well beyond the current boundaries of the Zone*. Additional
drilling planned for the summer 2011 was also deferred due to extreme
fire conditions in the area.
Asphalt Mineralized Zone* (formerly the Asphalt Potential Mineral
Deposit*):
Three holes were drilled over the Asphalt Mineralized Zone*, located
approximately 30 kilometres to the south of the Buckton Mineralized
Zone*. A number of additional planned drill holes were deferred,
including holes intended to upgrade a portion of the Asphalt
Mineralized Zone* (previously named the Asphalt Potential Mineral
Deposit*) into an inferred resource, and holes intended to verify
projected extensions of the Zone* which is open in three directions.
As outlined in the SBH Technical Report, the Asphalt Potential Mineral
Deposit* holds potential for hosting 109-132 million short tons of
polymetallic mineralization extending over 4.5 square kilometers and is
open in three directions. The Asphalt Potential Mineral Deposit* was
recently renamed as the Asphalt Mineralized Zone* to harmonize
nomenclature with Jun30/2011 amendments to NI-43-101. Although based on
drilling and nearby outcrop exposures, the Asphalt Mineralized Zone*,
as better outlined in the SBH Technical Report, is a target for further
ongoing exploration, it is conceptual in nature as there has been
insufficient drilling conducted over the Zone* to define a mineral
resource, and it is uncertain whether further drilling will define a
mineral resource over the Zone*.
DNI's current drilling reinforces geological extrapolations which
suggest good continuity of mineralization within the Asphalt
Mineralized Zone*. DNI intends to advance exploration of this Zone*
through additional future drilling intended to complete sufficient
number of holes to enable definition of initial inferred resource. Some
of the drilling planned for the summer 2011 was necessarily deferred
due to extreme fire conditions in the area.
Details of the drilling completed over the Asphalt Mineralized Zone*
(holes 11AS01-11AS03) are tabulated below, showing analytical results,
as well as comparative grades from adjacent historic holes 7AS01 and
7AS02. (See www.dnimetals.com/images/black_shales/amz_2011.pdf for drill hole locations).
DNI has to date focused mainly on Mo-Ni-U-V-Zn-Cu-Co-Ag as the metals of
interest in the Speckled Shale over the Property. While none of these
metals is present in the shale in high enough concentration to be a
'pay' metal by itself, the metals collectively represent sufficient
in-situ value on a combined basis to place the Zones* discovered in the
shale within reach of viability as long term sources of metals provided
the metals are collectively recovered. DNI's leaching testwork over the
past two years has confirmed collective recoverability of the group of
metals, and indicated that additional metals of value are also
incidentally extracted from shale as co-products which include rare
earths. To that end, Li grades are also tabulated below given its
incidental recovery during DNI's leaching tests as a co-product which
can also proxy for the similar recovery of several other rare earth
elements from the shale. Rare earth element recoveries will be
announced at a future date once their analytical data has been fully
assessed.
________________________________________________________________________
| Hole |Depth|Zone Width** (m)| Weighted Average Grade (ppm) |Specific|
| | | | *** | |
|________|_____|________________|_______________________________|________|
| # | (m) | From-To |Width|Mo |Ni |U | V |Zn |Cu|Co|Ag |Li|Gravity |
|________|_____|__________|_____|___|___|__|___|___|__|__|___|__|________|
|11AS01 |51.0 |26.8-37.9 |11.1 |116|203|47|786|352|88|30|1.0|75| 2.38 |
|________|_____|__________|_____|___|___|__|___|___|__|__|___|__|________|
|11AS02 |106.5|95.5-106.5|11.0 |65 |137|30|682|281|89|23|0.9|85| 2.48 |
|________|_____|__________|_____|___|___|__|___|___|__|__|___|__|________|
|11AS03 |32.5 |Hole Lost in overburden in bad ground @ 32.5m depth |
|________|_____|_________________________________________________________|
|7AS01 |76.3 | 7.1-18.5 |11.4 |73 |144|47|690|376|89|20|0.3|na| na |
|historic| | | | | | | | | | | | | |
|________|_____|__________|_____|___|___|__|___|___|__|__|___|__|________|
|7AS02 |89.8 |21.6-33.2 |11.4 |63 |122|31|664|282|89|20|0.3|na| na |
|historic| | | | | | | | | | | | | |
|________|_____|__________|_____|___|___|__|___|___|__|__|___|__|________|
_____________________________________________________________________________
| Hole |Depth|Zone Width** (m)| Weighted Average Grade (lb/st) *** |
|________|_____|________________|_____________________________________________|
| # | (m) | From-To |Width| Mo | Ni | U | V | Zn | Cu | Co | Li |
| | | | |[MoO3]| |[U3O8]|[V2O5]| | | | |
|________|_____|__________|_____|______|____|______|______|____|____|____|____|
|11AS01 |51.0 |26.8-37.9 |11.1 | 0.23 |0.41| 0.09 | 1.57 |0.70|0.18|0.06|0.15|
| | | | |[0.35]| |[0.11]|[2.80]| | | | |
|________|_____|__________|_____|______|____|______|______|____|____|____|____|
|11AS02 |106.5|95.5-106.5|11.0 | 0.13 |0.27| 0.06 | 1.36 |0.56|0.18|0.05|0.17|
| | | | |[0.20]| |[0.07]|[2.43]| | | | |
|________|_____|__________|_____|______|____|______|______|____|____|____|____|
|11AS03 |32.5 |Hole Lost in overburden in bad ground @ 32.5m depth |
|________|_____|______________________________________________________________|
|7AS01 |76.3 | 7.1-18.5 |11.4 | 0.15 |0.29| 0.09 | 1.38 |0.75|0.18|0.04| na |
|historic| | | |[0.22]| |[0.11]|[2.46]| | | | |
|________|_____|__________|_____|______|____|______|______|____|____|____|____|
|7AS02 |89.8 |21.6-33.2 |11.4 | 0.13 |0.24| 0.06 | 1.33 |0.56|0.18|0.04| na |
|historic| | | |[0.19]| |[0.07]|[2.37]| | | | |
|________|_____|__________|_____|______|____|______|______|____|____|____|____|
Note: See notes attached to information tabulated above for the Buckton
Mineralized Zone*.
The drilling over the Asphalt Mineralized Zone* serves to confirm
historic drilling results. The results reiterate uniformity of grades
between the Asphalt and Buckton Mineralized Zones* which are located
some 30km apart, and continuity of bulk average grades over distances
ranging 300m-760m between holes.
In addition, the recent drill results indicate that tonnages previously
estimated for the Asphalt Mineralized Zone* in the SBH Technical
Report, relying on historic information, are understated. While an
estimated specific gravity of 2.1, per historic work records, was
relied upon by the SBH Technical Report to estimate potential tonnages
which might be hosted in the Asphalt Mineralized Zone*, specific
gravity of the Speckled Shale as measured from the above drill core
samples averages approximately 2.4 and, accordingly, revises potential
tonnages estimated for the Asphalt Mineralized Zone* from 109-132
million short tons of polymetallic mineralization to 125-151 million
short tons. The above specific gravity figures are consistent with
results from surface sampling completed by DNI during the past two
years. These revisions will be incorporated into revisions to the SBH
Technical Report which are in progress to also incorporate and
consolidate other exploration results accumulated by the Company since
2008 which have to date been reported only in press releases.
General Update of Work In Progress:
Bioleaching testwork has resumed relying on weighted composite drill
core samples, with an anticipated completion later in the year. This
work is being carried out by Alberta Innovates Technology Futures
(previously, the Alberta Research Council) to laboratory specifications
formulated by DNI and its bioleaching consultants. Additional testwork
will also follow later in the year, at separate facilities, to scale up
test conditions to advance toward column leaching tests and,
ultimately, toward a small initial heap leach test in 2012.
Consideration is being given to complete additional drilling over the
Asphalt and Buckton Mineralized Zones* during late fall 2011 to
complete planned drilling which was recently deferred due to extreme
fire conditions. Consideration will also be given to completing initial
test holes over the Buckton South Zone which is intermittently exposed
and located midway between the Asphalt and Buckton Mineralized Zones*.
The Buckton South Zone has not previously been drill tested and holds
potential for hosting mineralization of similar grade and dimensions as
that reported form the Buckton and Asphalt Mineralized Zones.
Additional analytical as well as leaching results will be announced
shortly, from work which was completed during the winter whose review
is nearly completed.
*Section 2.3(2) of National Instrument 43-101 ('NI-43-101'), as amended
Jun30/2011, provides for written disclosure of the potential quantity
and grade, expressed as ranges, of a 'target of further exploration',
provided the disclosure includes a statement that the potential
quantity and grade is conceptual in nature, that there has been
insufficient exploration to define a mineral resource and that it is
uncertain if further exploration will result in the target being
delineated as a mineral resource; and provided the disclosure also
states, with equal prominence, the basis on which the disclosed
potential quantity and grade has been determined. The SBH Technical
Report predates amendments made to NI-43-101 on Jun30/2011 which
include amendments to portions of Section 2.3(2) to omit prior
reference to a 'potential mineral deposit' as a target for further
exploration. The Technical Report describes the metallic mineralization
potentially hosted within the Asphalt and Buckton Zones as Potential
Mineral Deposits and in terms which were consistent with NI-43-101
prior to its Jun30/2011 amendment, and per technical specifications
consistent with the Instrument as amended. The Report's reference,
however, to the foregoing mineralization as 'Potential Mineral
Deposits' is terminology which is not consistent with NI-43-101 as
amended. The SBH Technical Report is currently being updated to
incorporate and consolidate exploration results accumulated by the
Company since 2008, and to harmonize miscellaneous nomenclature therein
with NI-43-101 as amended.
DNI continues to focus its efforts on its polymetallic black shale
Properties in Alberta, and on its carried interest in the diamond
discovery on its Attawapiskat Property, Ontario.
The Qualified Person in connection with this press release is S.F.Sabag
P.Geo, DNI's president and CEO, who has reviewed analytical results and
is responsible for preparation of this press release. The Qualified
Person in connection with logging and physical parameters of the holes
is M.Dufresne PGeo.
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 release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 60,100,284
We seek Safe Harbour. This announcement includes forward looking
statements. While these statements represent DNI's best current
judgment, they are subject to risks and uncertainties that could cause
actual results to vary, including risk factors listed in DNI's Annual
Information Form available from SEDAR and on its website.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/15/c5725.html
DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195
email ir@dnimetals.com. Also visit www.dnimetals.com