VANCOUVER, Feb. 4, 2020 /CNW/ - Dixie Gold Inc. (TSX
VENTURE: DG) ("Dixie Gold" or
the "Corporation) is pleased to announce that its project
optionee, Azincourt Energy Corp. ("Azincourt"), has
commenced drilling at the 25,000+ hectare East Preston Uranium
Project, located 50 km southeast of Patterson Lake, in the
Western Athabasca Basin of
northern Saskatchewan,
Canada.
Preston Uranium Project
Map:
https://www.dixiegold.ca/preston-media
Drilling has begun at pad EP20PADB, which is located along the
northern part of the A-Zone conductor corridor. One hole in
the abbreviated 2019 drill campaign targeted a nearby parallel
conductor. Hole EP19003 successfully intersected a
graphite-pyrite bearing shear zone that explains the geophysical
conductors determined by previous ground and airborne EM surveys.
The 2019 results validate the geophysical interpretation in the
Five Island Lakes project area and were paramount in determining
the target priority sequence for the 2020 program.
Drill target prioritization for the current campaign is based on
a detailed compilation of results from the 2019 winter drill
program and 2018 and 2019 ground-based EM and gravity surveys, and
property-wide helicopter-borne Versatile Time-Domain
Electromagnetic (VTEM™ Max) and magnetic surveys.
The approximately $1.2 million
drill program is focused on prospective targets in the Five Island
Lakes area with 2000m to 2500m in up to 15 holes of diamond drilling at up
to 10 pad locations. The majority of proposed holes will test
multiple subparallel EM conductors (A-zone and B-zone conductor
corridors), in an area of marked structural disruption. Portions of
the A-zone were drilled during the 2019 winter campaign verifying
that the conductor hosts significant graphite in strongly deformed
(sheared) host rocks that offer both fluid pathways and a reducing
host rock conducive to uranium deposition.
2020 Drill Targets – East Preston
Project
https://www.dixiegold.ca/preston-media
Initial drilling is also proposed for the Swoosh zone, a 7+ km
long east-west structural lineament with strongly anomalous,
spatially consistent geochemical anomalies (lake sediments, radon,
soil) and coincident magnetic and gravity geophysical anomalies.
Two holes are proposed for this area near the upstream terminus of
the geochemical anomalies. This zone is located along strike
approximately 5 km southwest of the A-zone. The 2020 drill
program is being conducted under the guidance and supervision of
Azincourt director Ted O'Connor,
M.Sc., P.Geo, and Jarrod Brown,
M.Sc., P.Geo, Chief Geologist and Project Manager with TerraLogic
Exploration Inc.
Option Agreement:
Dixie Gold Inc. and Skyharbour Resources Ltd. ("Skyharbour")
entered into an Option Agreement (the "Agreement") with
Azincourt whereby Azincourt has an earn-in option to acquire a 70%
working interest in a portion of the Preston Uranium Project known
as the East Preston Project. Under the Agreement, Azincourt has
issued common shares and will contribute cash and exploration
expenditure consideration totaling up to CAD $3,500,000 in exchange for up to 70% of the
applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000 will be in cash payments split by
Dixie Gold and Skyharbour, as well
as $2,500,000 in project exploration
expenditures over the three-year period.
Project Location – Western Athabasca Basin, Saskatchewan,
Canada
https://www.dixiegold.ca/preston-media
About the East Preston Uranium Project:
Extensive regional exploration work at East Preston was completed in 2013-14,
including airborne electromagnetic (VTEM), magnetic and radiometric
surveys. Three prospective conductive, low magnetic signature
corridors have been discovered on the property. The three distinct
corridors have a total strike length of over 25 km, each with
multiple EM conductor trends identified. Ground prospecting and
sampling work completed to date has identified outcrop, soil,
biogeochemical and radon anomalies, which are key pathfinder
elements for unconformity uranium deposit discovery.
Azincourt completed a winter geophysical exploration program in
January-February 2018 that generated
a significant amount of new drill targets within the previously
untested corridors while refining additional targets near previous
drilling along the Swoosh corridor. Ground-truthing work confirmed
the airborne conductive trends and more accurately located the
conductor axes for future drill testing. The gravity survey
identified areas along the conductors with a gravity low signature,
which is often associated with alteration, fault/structural
disruption and potentially, uranium mineralization. The
combination/stacking of positive features has assisted in
prioritizing targets.
The Main Grid shows multiple long linear conductors with
flexural changes in orientation and offset breaks in the vicinity
of interpreted fault lineaments – classic targets for
basement-hosted unconformity uranium deposits. These are not just
simple basement conductors; they are clearly upgraded/enhanced
prospectivity targets because of the structural complexity.
The targets are basement-hosted unconformity related uranium
deposits similar to NexGen's Arrow deposit and Cameco's Eagle Point
mine. East Preston is near the
southern edge of the western Athabasca Basin, where targets are in a near
surface environment without Athabasca sandstone cover – therefore they are
relatively shallow targets but can have great depth extent when
discovered. The project ground is located along a parallel
conductive trend between the PLS-Arrow trend and Cameco's
Centennial deposit (Virgin River-Dufferin Lake trend).
In early 2019, Azincourt conducted a small initial diamond drill
program totaling 552m. The results
confirmed the prospectivity of the East
Preston project, as basement lithologies and graphitic
structures intersected at East
Preston were found to be very similar and appear to be
analogous to the Patterson Lake South-Arrow-Hook Lake/Spitfire
uranium deposit host rocks and setting.
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 Dixie Gold Inc.
Dixie Gold Inc. (TSXV:DG) is a publicly-traded exploration
company involved in a diverse portfolio of exploration projects in
Canada. For more information,
please visit www.dixiegold.ca.
Signed,
Ryan Kalt, Chairman & 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.