DNI reports initial winter drilling results and upgrades potential tonnages for the Buckton and Asphalt Zones*, polymetallic bla
July 15 2011 - 12:53PM
PR Newswire (Canada)
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 p
DNI Metals Inc. - Shahe Sabag, President & CEO or Denis
Clement, Chairman - 416-595-1195br/ email a
href="mailto:ir@dnimetals.com"ir@dnimetals.com/a. Also visit a
href="http://www.dnimetals.com"www.dnimetals.com/a /p
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