VANCOUVER, Nov. 13, 2019 /CNW/ - Dixie Gold Inc.
(TSX VENTURE: DG) ("Dixie Gold" or the "Corporation")
is pleased to announce that the Corporation's option partner Orano
Canada Inc. ("Orano Canada") has announced details for an upcoming
exploration program in 2020 at the Preston Uranium Project which is
located in the western Athabasca
Basin near NexGen Energy Ltd.'s high-grade Arrow deposit and
Fission Uranium Corp.'s Triple R deposit.
Preston Uranium Project Map:
https://bit.ly/2KfadXm
"We are looking forward to the upcoming start of exploration
work in 2020 by our project partner Orano Canada at the Preston
Uranium Project. The initial geophysics and ground program is
scheduled to start early in the new year and will further advance
the project, as well as refine future drill
targets. This third-party funded
$735,000 exploration program planned
for our Preston Uranium Project underpins the significant value we
believe the project holds and continues to enable Dixie Gold to focus its own capital on gold
exploration," stated Ryan Kalt,
CEO of Dixie Gold.
About the Preston Uranium Project Agreement:
Dixie Gold Inc. (previously Clean Commodities Corp.) and
Skyharbour Resources Ltd. ("Skyharbour") entered into an option
agreement (the "Agreement") with Orano Canada (previously AREVA
Resources Canada Inc.) whereby Orano Canada has an option to
acquire up to a 70% working interest in the Preston Uranium Project
(see news release dated March 9,
2017). Under the Agreement, Orano Canada will contribute
cash and exploration program consideration totaling up to CAD
$8,000,000 in exchange for up to 70%
of the project over six years.
Preston Uranium Project Upcoming Winter 2020 Exploration
Program:
Orano Canada's proposed 2020 exploration program on the Preston
Uranium Project will consist of DC resistivity ground geophysics on
the JL and Canoe grids as well as the B conductive area. To-date,
exploration on the Preston Uranium Project has consisted of a
traditional approach of defining conductors via ground EM surveys
and diamond drilling.
The objective of the upcoming CAD $735,000 exploration program at the Preston
Uranium Project is to use the DC resistivity method to further
characterize the EM conductors by providing information about
possible clay, silicification or associated alteration in the
vicinity of conductors thereby adding another layer of information
to prioritize areas to be drill-tested. In order to perform the
2020 proposed resistivity surveys, historical geophysical lines
will be utilized at the JL and Canoe grids, and 15.9 km of line
cutting will be carried out at the B conductive area.
Previous diamond drilling on the property has intersected
numerous extensive, well developed and commonly graphitic ductile
shear zones, that were clearly reactivated over time. These
structures correlate with elongated NNE-trending magnetic
lineaments. A later brittle event is common in both drill core and
the magnetic data and could provide a locus for mineralizing
fluids. The shear zones are also commonly altered and locally metal
enriched (pyrite-pyrrhotite-chalcopyrite). The basement rocks
intersected are complexly deformed supracrustal rocks; largely
graphitic orthogneiss with minor paragneiss, intruded by
granitoids. These lithologies are common to the proven uranium
mineralization in the Western
Athabasca region (Shea Creek
and Patterson Lake corridor
deposits).
Proposed Work on the JL Grid:
The 2018 ML-TEM survey on the JL Grid identified eight different
conductors with strike lengths between 800
m and 2,800 m. Orano plans to
carry out 16.0 km of DC resistivity over four of the EM profiles to
help determine which of the numerous JL Grid EM picks should be
tested first with drilling.
Proposed Work on the Canoe Grid:
The EM - Resistivity approach will also be applied on the Canoe
Grid where the DC resistivity data should help prioritize areas
and/or conductors to be investigated by drilling. A total conductor
length of approximately 20.5 km was characterized in the Canoe Grid
area by prior EM surveys. Orano is planning to carry out 12.6 km of
DC resistivity.
Proposed Work at the B Conductive Area:
The DC resistivity method will be evaluated over the B
conductive area located east of Preston
Lake where prior VTEM coverage defined the B conductive area
to vary in width from 0.8 km to 2.0 km and extend in a NE-SW
direction for more than 12 km. The survey coverage will consist of
12.6 km and may potentially generate new drill targets.
Overview of the Preston Uranium Project:
The significant potential of the Western Athabasca Basin has been highlighted
by recent discoveries in the area by NexGen Energy Ltd. (Arrow),
Fission Uranium Corp. (Triple R) and a joint-venture consisting of
Cameco Corporation, Orano Canada Inc. and Purepoint Uranium Group
Inc. (Spitfire). To-date, exploration at the Preston Uranium
Project has consisted of ground gravity, airborne and ground
electromagnetics, radon, soil, silt, biogeochemistry, lake
sediment, and geological mapping and sampling surveys, as well as
several exploratory drill programs. A number of high-priority drill
target areas associated with multiple prospective exploration
corridors have been successfully delineated through this
methodical, multiphased exploration approach, which has culminated
in an extensive, proprietary geological database for the project
area.
Qualified Person:
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed and approved by
Richard Kusmirski, P.Geo., M.Sc.,
Skyharbour's Head Technical Advisor and a Qualified Person.
About Orano Canada Inc.:
Headquartered in Saskatoon,
Saskatchewan, Orano Canada Inc. is a
leading supplier of uranium, accounting for the
processing of 18 million pounds produced in Canada in 2018. Orano Canada has
been exploring for uranium, mining and producing uranium
concentrate in Canada for more
than 55 years. The company operates the McClean Lake
uranium mill and is a major partner in the Cigar Lake,
McArthur River and Key Lake
operations. The company employs over 450 people in Saskatchewan, including about 320 at the
McClean Lake operation where over 46% of employees are
self-declared Indigenous. As a sustainable uranium producer,
Orano Canada is committed to safety, environmental protection
and contributing to the prosperity and well-being
of neighbouring communities.
Orano Canada Inc. is a subsidiary of the multinational
Orano group offering products and services with high
added value throughout the entire nuclear fuel cycle, from raw
materials to waste treatment. Its activities, from mining to
dismantling, as well as in conversion, enrichment, recycling,
logistics and engineering, contribute to the production of low
carbon electricity. Orano and its 16,000 employees bring to
bear their expertise and their mastery of cutting-edge technology,
as well as their permanent search for innovation and unwavering
dedication to safety, to serve their customers worldwide.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV: DG)(formerly Clean Commodities Corp.) is
a publicly-traded exploration company involved in a diverse
portfolio of exploration projects including gold, lithium and
uranium assets in Canada. For more
information, please visit www.dixiegold.ca.
Signed,
Ryan Kalt, Chief Executive
Officer
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently expected or forecast in
such statements.
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.
SOURCE Dixie Gold Inc.
