DNI Reports New Rare Earth Elements Results from its Buckton Inferred Resource and Overburden Cover Rocks from its Black Shal...
November 29 2011 - 2:17PM
PR Newswire (Canada)
DNI METALS INC. TORONTO, Dec. 2, 2011 /CNW/ - DNI Metals Inc. with
reference to prior press releases of October 24 and September 8,
2011, and the NI-43-101 compliant resource study on record of
October 18, 2011, for a portion of the Buckton Mineralized Zone,
DNI is pleased to report recent assay results for rare earth
elements from its Buckton inferred resource and overlying
overburden cover rocks at its Alberta polymetallic black shale
projects, Athabasca Region, Alberta. The Buckton inferred resource
(announced October 24, 2011) represents 250,092,000 short tons
(226,880,000 metric tonnes) of mineralized Second White Speckled
black Shale, beneath less than 75m of overburden cover, which is
mineralized with recoverable Molybdenum (Mo), Nickel (Ni), Uranium
(U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co) and Lithium
(Li). Mineral resources are not mineral reserves and do not have
demonstrated economic viability. There is no guarantee that all or
any part of the Buckton inferred resource will be converted into a
mineral reserve. The Buckton inferred resource also contains
recoverable rare earth elements and specialty metals of value (e.g.
Li, Sc, Th) which are incidentally extracted from the shale during
DNI's leaching testwork as co-products to the traditional metals,
and might represent additional previously unrecognized value hosted
in the resource. These elements and metals were omitted from the
resource study and will be addressed in a separate addendum report
which is nearly completed. In addition, DNI's analytical work also
reported rare earth elements and specialty metals from the
overburden cover rocks above the Buckton resource. This is
significant and suggests that material previously considered as
"waste" might have potential to represent additional previously
unrecognized value which might enhance economics of the underlying
resource. To begin assessing the potential of rare earths and
specialty metals in the Buckton Mineralized Zone and related
resource, all samples from all available drill core intercepts
across the Buckton inferred resource and the overlying overburden
cover rocks were recently re-analyzed for rare earth elements. The
new data will replace prior partial databases collated from
analytical programs of the past three years with a single database
of higher analytical resolution specifically focusing on rare earth
elements. Results being announced are from re-analysis of all drill
core samples from DNI's 2010-2011 winter drilling program across
the Buckton inferred resource as well as the overlying overburden
cover rocks, in addition to results from samples of drill
intercepts across the resource from archived historic drill core.
The foregoing holes collectively form the basis of the Buckton
resource study. Only partial third-party analytical data are
available from historic drilling across the overburden cover
overlying the Buckton resource. Grades for specialty metals and
rare earth elements for all drill intercepts across the Buckton
resource are summarized below (see DNI press July15, 2011, for
other metals). The results are for drill core samples collected
from DNI's 2010-2011 winter drilling program, together with results
from DNI's verification sampling of historic drilling and surface
samples BK456 and BK003 tested during bioleaching studies. Buckton
Mineralized Zone Hole or Zone Width** (m) Weighted Average Grade
(ppm)*** Sample# From-To Width La Ce Pr Nd Sm Eu Gd Tb Dy Er Yb Y
Sc 11BK01* 46.6-66.9 20.3 55 89 12 47 10 2.1 9.3 1.4 8.3 4.5 4.1 26
15 11BK02* 67.0-89.8 22.8 53 85 11 44 9 2.0 9.1 1.4 8.1 4.5 4.1 49
11 11BK03* 41.2-61.0 19.9 43 72 9 37 8 1.6 7.2 1.1 6.3 3.7 3.4 30
14 11BK04* 54.5-68.0 13.5 47 76 10 38 8 1.6 7.2 1.1 6.3 3.6 3.3 27
15 11BK05* 61.9-74.5 12.6 51 77 10 40 8 1.7 7.3 1.1 6.5 3.7 3.4 38
12 7BK01* 132.9-148.2 15.3 56 87 12 49 10 2.2 9.6 1.5 8.3 4.6 4.4
52 11 7BK03* 75.0-101.2 26.2 63 97 14 55 11 2.4 10.7 1.6 9.1 4.9
4.5 59 11 7BK05* 76.8-95.2 18.4 53 86 12 47 10 2.0 8.9 1.4 7.6 4.2
3.9 49 12 BK456* na 4 72 111 25 94 17 na 20 na 16 9 9 98 17 BK003*
na 2 25 55 9 28 5 na 6 na 5 2 2 22 7 m=metres; na = no data Buckton
Mineralized Zone Hole or Zone Width** (m) Weighted Average Grade
(lb/st)*** Sample# From-To Width La Ce Pr Nd Sm Eu Gd Tb Dy Er Yb Y
Sc 11BK01* 46.6-66.9 20.3 0.11 0.18 0.02 0.09 0.02 0.004 0.019
0.003 0.017 0.01 0.01 0.05 0.03 11BK02* 67.0-89.8 22.8 0.11 0.17
0.02 0.09 0.02 0.004 0.018 0.003 0.016 0.01 0.01 0.10 0.02 11BK03*
41.2-61.0 19.9 0.09 0.14 0.02 0.07 0.02 0.003 0.014 0.002 0.013
0.01 0.01 0.06 0.03 11BK04* 54.5-68.0 13.5 0.09 0.15 0.02 0.08 0.02
0.003 0.014 0.002 0.013 0.01 0.01 0.05 0.03 11BK05* 61.9-74.5 12.6
0.10 0.15 0.02 0.08 0.02 0.003 0.015 0.002 0.013 0.01 0.01 0.08
0.02 7BK01* 132.9-148.2 15.3 0.13 0.19 0.03 0.11 0.02 0.005 0.021
0.003 0.018 0.01 0.01 0.12 0.02 7BK03* 75.0-101.2 26.2 0.11 0.17
0.02 0.09 0.02 0.004 0.018 0.003 0.015 0.01 0.01 0.10 0.02 7BK05*
76.8-95.2 18.4 0.27 0.38 0.06 0.25 0.06 0.012 0.055 0.008 0.044
0.02 0.02 0.29 0.03 BK456* na 4 0.14 0.22 0.05 0.19 0.03 na 0.04 na
0.03 0.02 0.02 0.20 0.03 BK003* na 2 0.05 0.11 0.02 0.06 0.01 na
0.01 na 0.01 0.00 0.00 0.04 0.01 m=metres; lb/st=pounds per short
ton; na = no data *Drill holes 11BK01-11BK05 drilled by DNI. Drill
holes 7BK01, 7BK03 and 7BK05 are historic holes. Drill holes
tabulated are from drilling over the Buckton Mineralized Zone.
Samples BK456 and BK003 are surface trenching samples tested during
bioleaching tests and results reported are reiterated from DNI
press Sep8/2011. **All holes are vertical and widths reported are
true widths; Drill core sampled at a standard 0.5m interval; Data
for historic holes based on DNI's verification analytical program
which re-sampled historic drill core at lengths averaging 3.8m;
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 Speckled Shale Formation
based on lithogeochemical characterization; Data for historic drill
holes from DNI's verification analytical program; lb/st=pounds per
short ton; Analyses by Activation Labs, Ancaster, ON; REE analyses
by Fusion-ICP or Fusion-MS; In addition to analytical blanks and
standards utilized by Actlabs as part of its analytical quality
assurance and quality control protocols, 31 samples of 698, were
analyzed in triplicate and demonstrate good correlation. All
samples were previously also analyzed in separate other work orders
by INA, and prior data compare acceptably well with to the current
results reported above. Considering the uniformity of grades among
all drill holes across the Buckton Mineralized Zone, the results
tabulated above serve to characterize grades which can be
reasonably expected from this Zone, which is a conceptual target
for further exploration with potential for hosting 1.4-1.5 billion
short tons of polymetallic mineralization extending over 26 square
kilometers and is open in three directions. If amortized over the
Buckton Mineralized Zone, the apparently modest grades tabulated
are significant and represent an immense in-situ metallic budget of
recoverable specialty metals and rare earth elements. Calculated
recoveries of specialty metals and REE's from leaching tests of
samples from the Second White Speckled black shale hosting the
Buckton inferred resource were announced September 8, 2011, and are
reiterated below. Calculated Bioleaching Recoveries for Specialty
Metals* - Speckled Black Shale Sample BK456 La Ce Pr Nd Sm Eu Gd Tb
Dy Er Yb Y Sc Th** Li per 66% 77% 58% 66% 91% 83% 88% 97% 92% 88%
90% 90% 51% 100% 25% Solutions per 70% 68% 76% 78% 83% 86% 90% 92%
92% 92% 64% 92% 57% 74% 22% Solids *See press release September 8,
2011, for details The Buckton resource study also concluded that
the Buckton inferred resource is overlain by 762,678,000 short tons
(691,890,000 metric tonnes) of overburden cover material consisting
of LaBiche Formation shales and overlying till. The overburden
material is barren of base metals and uranium, and is, accordingly,
considered to be "waste" by the resource study for the purposes of
estimating the initial Buckton base metals and uranium inferred
resource. The overburden material, however, contains specialty
metals (e.g. Li, Sc, Th) and rare earth elements which have not yet
been fully evaluated even though their grades are comparable to
grades from the Buckton Mineralized Zone (see press September 8,
2011). Grades for specialty metals and rare earth elements for all
drill intercepts across the overburden cover material ("O/B Cover")
overlying the Buckton resource are summarized below. The results
are for drill core samples collected from DNI's 2010-2011 winter
drilling program, together with historic third-party results from
historic drilling. Overburden Cover Rocks Hole or O/B Cover
Weighted Average Grade (ppm)*** Sample# Width** (m) From-To Width
La Ce Pr Nd Sm Eu Gd Tb Dy Er Yb Y Sc 11BK01* 7.0-46.6 39.6 39 71 8
33 6 1.3 5.1 0.8 4.8 2.8 2.9 27 14 11BK02* 9.0-67.0 58.0 40 73 8 32
6 1.3 5.1 0.8 4.6 2.8 2.9 26 16 11BK03* 16.0-20.0 4.0 46 83 9 34 6
1.4 4.5 0.7 3.8 2.4 2.3 27 15 11BK03* 20.0-41.2 21.2 40 73 8 31 6
1.3 4.8 0.7 4.4 2.6 2.6 48 11 11BK04* 15.0-54.5 39.5 42 73 9 33 6
1.3 5.2 0.8 4.8 2.9 2.9 28 14 11BK05* 16.5-17.5 1.0 28 55 6 24 5
1.0 4.2 0.7 3.7 2.1 2.3 49 12 11BK05* 17.5-61.9 44.4 38 70 8 31 6
1.2 5.0 0.8 4.6 2.9 2.9 27 15 7BK01* 6.5-24.2 17.7 37 66 na 26 5
1.4 na 0.7 na na 3.1 22 14 7BK01* 24.2-133.0 108.8 41 71 na 29 5
1.4 na 0.7 na na 3.2 24 16 7BK03* 13.6-75.0 61.4 46 86 na 37 7 1.7
na 0.8 na na 4.2 24 19 7BK05* 9.1-39.1 30.0 32 57 na 25 4 1.2 na
0.5 na na 2.7 23 10 7BK05* 39.1-76.8 37.7 35 61 na 27 5 1.3 na 0.6
na na 3.1 27 13 m=metres; na = no data Overburden Cover Rocks Hole
or O/B Cover Weighted Average Grade (lb/st)*** Sample# Width** (m)
From-To Width La Ce Pr Nd Sm Eu Gd Tb Dy Er Yb Y Sc 11BK01*
7.0-46.6 39.6 0.08 0.14 0.02 0.07 0.01 0.003 0.010 0.002 0.010 0.01
0.01 0.05 0.03 11BK02* 9.0-67.0 58.0 0.08 0.15 0.02 0.06 0.01 0.003
0.010 0.002 0.009 0.01 0.01 0.05 0.03 11BK03* 16.0-20.0 4.0 0.09
0.17 0.02 0.07 0.01 0.003 0.009 0.001 0.008 0.00 0.00 0.05 0.03
11BK03* 20.0-41.2 21.2 0.08 0.15 0.02 0.06 0.01 0.003 0.010 0.001
0.009 0.01 0.01 0.10 0.02 11BK04* 15.0-54.5 39.5 0.08 0.15 0.02
0.07 0.01 0.003 0.010 0.002 0.010 0.01 0.01 0.06 0.03 11BK05*
16.5-17.5 1.0 0.06 0.11 0.01 0.05 0.01 0.002 0.008 0.001 0.007 0.00
0.00 0.10 0.02 11BK05* 17.5-61.9 44.4 0.08 0.14 0.02 0.06 0.01
0.002 0.010 0.002 0.009 0.01 0.01 0.05 0.03 7BK01* 6.5-24.2 17.7
0.07 0.13 na 0.05 0.01 0.003 na 0.001 na na 0.01 0.04 0.03 7BK01*
24.2-133.0 108.8 0.08 0.14 na 0.06 0.01 0.003 na 0.001 na na 0.01
0.05 0.03 7BK03* 13.6-75.0 61.4 0.09 0.17 na 0.07 0.01 0.003 na
0.002 na na 0.01 0.05 0.04 7BK05* 9.1-39.1 30.0 0.06 0.11 na 0.05
0.01 0.002 na 0.001 na na 0.01 0.05 0.02 7BK05* 39.1-76.8 37.7 0.07
0.12 na 0.05 0.01 0.003 na 0.001 na na 0.01 0.05 0.03 m=metres;
lb/st=pounds per short ton; na = no data *See qualifying notes in
previous table; Results for drill holes 11BK01-11BK05 are from
recent analytical work by DNI, results for historic holes 7BK01-05
are third party data from Alberta Mineral Assessment Report MIN9802
based on analytical work by INA; tops of drill holes 11BK05
(16.5-17.5m) and 11BK03 (16-20m) consist of glacial till scoured
from the underlying LaBiche Shale, tops of historic holes 7BK01
(6.5-24.2m) and 7BK05 (9.1-39.1m) similarly consist of scoured
glacial till. In addition to the above, the overburden cover
material also contains recoverable Lithium over the lengths of
drill intercepts reported as follows (Li reported as ppm,
equivalent Li(2)CO(3) in lb/st in brackets): 11BK01-79ppm
(0.84lb/st), 11BK02-73ppm (0.78lb/st), 11BK03-61ppm (0.66lb/st),
11BK04-87ppm (0.93lb/st), 11BK05-69ppm (0.73lb/st). No analytical
data are currently available for Li from historic holes 7BK01-05.
Considering the uniformity of grades among all drill holes across
the Buckton Mineralized Zone, the tabulated results above serve to
characterize grades which can be reasonably expected from
overburden cover rocks overlying this Zone. If amortized over the
volume of overburden above the Zone, the apparently modest grades
tabulated are significant and represent an immense in-situ metallic
budget of specialty metals and rare earth elements. DNI has not yet
completed the necessary testwork to determine recoverability of
these metals from the overburden cover rocks overlying the
resource. Despite the general availability of commodity price
quotes for specialty metals and rare earth elements, given lack of
transparency in their respective markets, assessment of the
economic impacts that these metals might have as co-products on
future development of DNI's polymetallic shales cannot be
determined at this time. The grades and incidental recoverability
of these metals are, however, material to any potential production
scenario envisaged by DNI for continuing exploration and
development of the six mineral systems identified at the Property
as a long term source of a variety of metals. DNI has broadened
scope of its testwork to actively focus on specialty metals and
rare earth element recoveries alongside the base metals of interest
which have so far been DNI's primary focus. DNI recently initiated
a study to estimate the quantity and potential value of rare earth
elements and specialty metals contained within the Buckton inferred
resource. This study is nearly completed and its conclusions will
be announced shortly as an addendum to the Buckton resource study.
The Buckton inferred resource extends over only a 5.7 square
kilometre portion of the 26 square kilometre Buckton Mineralized
Zone which is one of six mineralized systems, or zones, identified
by DNI on its 2,720 square kilometer Property. The Buckton
Mineralized Zone is the most advanced at the Property and has
sufficient drilling over a portion of it to support the Buckton
initial inferred resource. This announcement is being made in the
interest of continuing disclosure of results on hand. 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. 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 Mineral resources
are not mineral reserves and do not have demonstrated economic
viability. There is no guarantee that all or any part of the
mineral resource reported herein will be converted into a mineral
reserve. An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which quantity and grade or quality can be estimated
on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
Buckton resource study NI-43-101 compliant technical report is
available from www.sedar.com and from www.dnimetals.com. 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 and its MDS&A's, all of which are
available from SEDAR and on its website.
DNI Metals Inc. CONTACT: DNI Metals Inc. -
Shahe Sabag, President & CEO or Denis Clement,Chairman -
416-595-1195email ir@dnimetals.com. Also visit www.dnimetals.com
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