Dorato Resources Inc. ("Dorato" or the "Company") (TSX VENTURE:
DRI)(OTCQX: DRIFF)(FRANKFURT: DO5) is pleased to announce that, it
has entered into an option agreement to acquire a 100% interest in
the Deborah Gold property, Cajamarca, Peru. The property is nestled
between several major ore deposits including Anglo American's
Michiquillay Copper-Gold Porphyry, located 6 kilometres to the
southwest (631MT of 0.69% copper, 0.15 g/t gold, and 0.02% moly)
and China Minmetals and Jiangxi Copper Corp's El Galeno Copper-Gold
Porphyry, located 6 kilometres to the north (661MT of 0.50% copper,
0.12 g/t gold) (Figure 1), though it is not possible to determine
if similar results will be obtained from the property.
"The Deborah property represents an excellent exploration
opportunity providing a foothold into the southern portion of this
prolific porphyry-epithermal belt. Historic drill results on the
property indicate the presence of a gold-endowed system with both
high-grade and bulk-tonnage gold targets to be explored in the
coming months," stated Keith Henderson, Dorato's President &
CEO, "Infrastructure and access in the project area are excellent
and surface prospecting work is expected to begin in the near
future."
Regional Context
There are several major, large scale producing mines and
significant development projects in the belt (see Figure 1) and,
more importantly, in the immediate vicinity of the property (Figure
2). The geology between all local deposits is similar, with
mineralization related to Miocene dacite porphyry stocks intruding
Lower to Upper Cretaceous carbonate and sandstone units, though it
is not possible to determine if the Deborah property will be
similar.
The Michiquillay deposit (6 kilometres to the southeast) is
controlled by Anglo American Plc, who acquired the deposit in 2007,
having submitted the winning bid in a public auction process. Anglo
acquired the property for $403M. The deposit hosts 631 Mt grading
0.69% copper, 0.15 g/t gold, with 100-200 ppm molybdenum.
Exploration and resource definition is ongoing.
The El Galeno deposit is controlled by Copper Bridge Acquisition
Corp ("CBAC"), jointly owned by China Minmetals and Jiangxi Copper
Corp. CBAC acquired the deposit from Northern Peru Copper
Corporation in 2008 for $455M. At the time of sale, the
prefeasibility study estimated probable reserves of 661Mt grading
0.50% copper, 0.12 g/t gold, and 0.013% molybdenum.
The gold breccia at Hilorico (Figure 2), 1 kilometre northeast
of Galeno on the adjacent El Molino concession, may be the closest
geological analogue to Deborah property, although this
interpretation will have to be tested by future exploration.
Northern Peru Copper completed 13,000 metres of drilling at
Hilorico before the transaction with CBAC in 2008. Historic drill
intersections of note include 213 metres of 1.04 g/t Au and 1.6 g/t
Ag, and 82.5 metres of 1.04 g/t Au. According to the 2007
Prefeasibility study (NI 43-101 compliant), the deposit contains
Inferred Resources of 19.4MT at 0.65 g/t gold and 3.3 g/t silver
(407,000 ounces using a 0.3g/t gold cut-off in the oxide zone),
with additional sulphide resources of 21.3MT at 0.93 g/t gold and
4.8 g/t silver (641,000 ounces at 0.5 g/t gold cutoff).
The technical information with respect to the above deposits was
obtained through the respective companies' public disclosure
documents.
To view Figure 1, visit the following link:
http://media3.marketwire.com/docs/Figure1DRI.pdf
Deborah Exploration History
There are numerous exploration and small scale gold production
adits on the Deborah property developed over the last 100 years
targeting gold-rich structures, replacements and breccia bodies.
Deborah was first formally explored by Newmont Peru from 1992 to
1995 as part of a regional exploration program targeting the
Debroah and El Galeno properties. Newmont drilled 13 holes at
Deborah before returning to El Galeno in 1995 to pursue the
discovery of auriferous stockwork breccia in the sediments.
To view Figure 2, visit the following link:
http://media3.marketwire.com/docs/Figure2DRI.pdf
The underlying property vendors have provided historical
exploration data from Newmont's exploration drill program. Gold and
silver assay results include:
--------------------------------------------------------
DRILLHOLE THICKNESS (m) GOLD (g/t) SILVER (g/t)
--------------------------------------------------------
DEB-002 9.20 1.26 2.6
--------------------------------------------------------
DEB-003 51.35 0.51 3.4
--------------------------------------------------------
and 44.00 0.73 12.3
--------------------------------------------------------
DEB-004 47.75 0.59 18.0
--------------------------------------------------------
DEB-005A 4.05 1.30 43.0
--------------------------------------------------------
These holes appear to have targeted breccia in quartzite
adjacent to an area of sulphide veining in the southwest corner of
the concession, where surface channel samples returned anomalous
precious metal values.
Deborah Geology
Thick-bedded to massive quartzite of the Late Jurassic Chicama
Formation and/or Lower Cretaceous Chimu Formation is intruded by
hornblende granodiorite and dacite porphyry, the latter of which
forms a large recessively weathered central stock on the
property
Carbonate of the Santa Formation is present in the northeast
corner of the concession, apparently in fault contact across a 1-5m
wide pyrite-bearing breccia. These units are the same as those
hosting mineralization at El Galeno 6 km to the northwest, and
Michiquillay 6 km to the southwest.
Exploration Potential
The 13 holes drilled by Minera Yanacocha (Newmont) are
concentrated in the area of historic workings, and appear to have
targeted the down dip extension of the near-vertical gold-silver
rich replacement bodies and related southeast trending breccia
along the western edge of the concession (Figure 3). None of the
holes were drilled under an extensive recessive zone northeast of
the main quartzite hill, and neither was the area covered in the
surface rock sampling. Part of this area was mapped as dacite
porphyry, though it is much more recessive than the dacite porphyry
to the south.
Mineralization at the Galeno porphyry deposit is also recessive
and forms a topographically low area in the surrounding resistive
quartzite. The central recessive zone at Deborah is therefore
considered a prospective area, as this is where highly fractured
and mineralized zones might be expected to occur. The recessive
zone is in fact on strike with the tectonic breccia related to the
regional Punrre fault, which geologically connects Deborah with the
Hilorico gold-breccia target east of Galeno, and may represent a
splay of the structure. Also, the carbonate could be an important
unit in terms of hosting disseminated mineralization in permeable
(decalcified) sandy horizons along strike and adjacent to the
mineralized breccia. This target has yet to be drill tested.
Work Plan
The property is located only one hour east of the city of
Cajamarca (Figure 1), with good access via paved and dirt roads
(see Figure 2). Work is scheduled to commence following receipt of
approvals. In addition to remapping, the property will be sampled
with both soil and rock grids, since very little of the historic
surface data is available. The recessive area between the two
groups of drill holes, as shown in Figure 3, will be a priority.
The trail cuts leading up across the recessive area will be mapped
first to determine the depth of overburden and, if it is less than
a few metres, trenches and pits will be dug in the area and any
bedrock sampled.
This property is another step in developing a presence in the
prospective Northern Peru Porphyry Belt (Figure 4). Dorato's
Cobrecon copper-gold-moly porphyry project lies at the extreme
north end of the belt, within the Company's Cordillera del Condor
project area. Additional properties and potential acquisitions in
the belt will be reviewed once work gets underway at Deborah.
To view Figure 3, visit the following link:
http://media3.marketwire.com/docs/Figure3DRI.pdf
Commercial Terms
Under the terms of the option agreement, the Company can acquire
a 100% interest in the property in exchange for cumulative payments
of $6,000,000 over a minimum of 5 years. The detailed terms of the
option agreement are summarized in Table 1 below.
---------------------------------------------------
Event Cash
---------------------------------------------------
TSX-V Approval 'effective date' $50,000
---------------------------------------------------
On commencing drill-testing 'drill date' $200,000
---------------------------------------------------
1 year anniversary of drill date 400,000
---------------------------------------------------
2 year anniversary of drill date 600,000
---------------------------------------------------
3 year anniversary of drill date 900,000
---------------------------------------------------
4 year anniversary of drill date 1,200,000
---------------------------------------------------
5 year anniversary of drill date 2,650,000
---------------------------------------------------
The option agreement requires an immediate payment of $50,000 on
receipt of TSX-V approval ("Effective Date"). On completion of the
deal, the Company will begin systematic surface exploration of the
property. A second payment of $200,000 is payable on the
commencement of drilling ("Drill Date") and all subsequent payments
are tied to this drill-related anniversary. In addition, a royalty
of $4.00 per ounce of gold produced is payable to the underlying
vendors, up to a maximum of $2,000,000. There was no finder's fee
paid by the Company in connection with the Option Agreement.
To view Figure 4, visit the following link:
http://media3.marketwire.com/docs/Figure4DRI.pdf
Qualified Person
John Drobe, P.Geo., Dorato's Vice President of Exploration and a
qualified person as defined by National Instrument 43-101, has
reviewed and takes responsibility for the scientific and technical
information that forms the basis for this news release. Mr. Drobe
is not independent of the Company as he is an officer and a
shareholder.
About Dorato Resources Inc.
Dorato Resources Inc. is mineral exploration company focused on
the highly prospective Northern Peru Copper-Gold
porphyry-epithermal belt. The Company has property rights in two
geographic centres:
-- Cordillera del Condor -- one of the most important gold-bearing
districts in northern Peru since pre-Incan times. Dorato, through a
series of option agreements has the right to wholly acquire an extensive
land package of approximately 1,050-square-kilometres, providing the
Company with the largest land position in the Cordillera del Condor.
-- Cajamarca Region -- Dorato has acquired rights on the Deborah property,
which is nestled between several important copper-gold deposits,
including Michiquillay and El Galeno.
The Company focuses on grassroots opportunities in strategically
important locations where prospectivity can be demonstrated by
proximity to existing deposits. The Cordillera del Condor project
represents an exceptional land position and an emergent copper-gold
district, located close to the border with Ecuador. This remote
area of Peru was unexplored until recently, but it is located
within kilometres of recent discoveries like Fruta del Norte and
the Mirador District (both located just across the border in
Ecuador). The Cajamarca region, in contrast, is an established
mining district with excellent infrastructure. The Deborah property
is a foothold for Dorato into an established area with excellent
exploration potential.
On behalf of the board of directors of DORATO RESOURCES INC.
Keith Henderson, President & CEO
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements of
historical fact, included herein including, without limitation,
statements regarding the anticipated content, commencement and cost
of exploration programs, anticipated exploration program results,
the discovery and delineation of potential mineral
deposits/resources/reserves, business and financing plans and
business trends, are forward-looking statements. Although the
Company believes that such statements are reasonable, it can give
no assurance that such expectations will prove to be correct.
Forward-looking statements are typically identified by words such
as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions, or are those, which, by their nature, refer to
future events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required
for its activities, the Company's inability to produce minerals
from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully
able to implement its business strategies, to obtain the required
supremem decree from Peruvian authorities and other risks and
uncertainties disclosed in the Company's Amended 2010 Annual
Information Form filed with certain securities commissions in
Canada and the Company's 2010 Annual Report on Form 40-F filed with
the United States Securities and Exchange Commission (the "SEC"),
and other information released by the Company and filed with the
appropriate regulatory agencies. All of the Company's Canadian
public disclosure filings may be accessed via www.sedar.com and its
United States public disclosure filings may be accessed via
www.sec.gov, and readers are urged to review these materials,
including the latest technical report filed with respect to the
Livengood Property.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM Standards") as they may be amended
from time to time by the CIM.
United States shareholders are cautioned that the requirements
and terminology of NI 43-101 and the CIM Standards differ
significantly from the requirements and terminology of the SEC set
forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7").
Accordingly, the Company's future disclosures regarding
mineralization may not be comparable to similar information
disclosed by companies subject to SEC Industry Guide 7. Without
limiting the foregoing, while the terms "mineral resources",
"inferred mineral resources", "indicated mineral resources" and
"measured mineral resources" are recognized and required by NI
43-101 and the CIM Standards, they are not recognized by the SEC
and are not permitted to be used in documents filed with the SEC by
companies subject to SEC Industry Guide 7. Mineral resources which
are not mineral reserves do not have demonstrated economic
viability, and US investors are cautioned not to assume that all or
any part of a mineral resource will ever be converted into
reserves. Further, inferred resources have a great amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or any
part of the inferred resources will ever be upgraded to a higher
resource category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of a feasibility study or
prefeasibility study, except in rare cases. The SEC normally only
permits issuers to report mineralization that does not constitute
SEC Industry Guide 7 compliant "reserves" as in-place tonnage and
grade without reference to unit amounts. The term "contained
ounces" is not permitted under the rules of SEC Industry Guide 7.
In addition, the NI 43-101 and CIM Standards definition of a
"reserve" differs from the definition in SEC Industry Guide 7. In
SEC Industry Guide 7, a mineral reserve is defined as a part of a
mineral deposit which could be economically and legally extracted
or produced at the time the mineral reserve determination is made,
and a "final" or "bankable" feasibility study is required to report
reserves, the three-year historical price is used in any reserve or
cash flow analysis of designated reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority.
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.
Contacts: Dorato Resources Inc. Steve Stakiw Manager - Corporate
Communications 604-638-5817 Dorato Resources Inc. Michael Pound
Manager - Investor Relations 604-638-5817 604-408-7499 (FAX)
info@doratoresources.com www.doratoresources.com
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