DNI's Drilling Confirms Buckton South Zone and Probes Extension to the Buckton Resource on its Polymetallic Black Shale Project
October 04 2012 - 10:40AM
PR Newswire (Canada)
TORONTO, Oct. 4, 2012 /CNW/ - DNI Metals Inc. announces that its
drilling program at its Alberta polymetallic black shale projects
has been concluded and that crews and equipment have demobilized
from the field. The drilling successfully confirmed the new Buckton
South Zone and served to extend the Buckton Zone by approximately
three kilometres. The program completed an aggregate of 980m in
nine short vertical diamond drill HQ holes all of which, except
one, intersected the Second White Speckled Shale Formation which
hosts mineralization at the Buckton and Buckton South Zones. One of
the holes was located too far to the east of the erosional edge of
this Formation to intersect it. Intercepts of the Formation in the
drill holes range 11m to 22m, and are consistent with prior
drilling in the area. Labiche Formation black shale which overlies
the Speckled Shale was also intersected in all of the holes in
intercepts ranging 16m to 84m. All drill core has been sampled but
not yet analyzed, although field testing of split core samples with
a mobile field X-Ray Florescence analytical unit (XRF) shows that
intercepts of the Second White Speckled Shale sampled during the
drilling are metal enriched similarly to those from prior drill
intersections across the mineralized Buckton Zone. The XRF results
are, however, NOT assay results as they are semi-quantitative
approximations of grade and are intended only as a field screening
method to reinforce visual identification of Formational contacts.
Analytical results will be announced once received. Three of the
drill holes were cored at the Buckton South Zone located 8
kilometres to the south of the Buckton inferred resource (announced
Oct24/2011 and Jan16/2012), and successfully confirmed this Zone
over approximately 3 square kilometres. The current holes are the
first ever cored over the Buckton South Zone which had previously
been identified relying on surface trenching and historic oil/gas
well downhole subsurface information. Consideration will be given,
once assay results are received, to assess whether drill data on
hand, reinforced by trenched surface exposures, suffice to enable
delineation of a new initial inferred resource from the Buckton
South Zone. Four holes drilled to the north of the Buckton inferred
resource confirmed extensions to the Buckton Zone for an additional
3 kilometres to the north of the Buckton resource. Subject to
revising the current Buckton resource by an updated resource study,
expectations are that the current drilling results will enable
expansion of the Buckton inferred resource northward over up to an
additional 4 square kilometres. This expansion will be additional
to a westward expansion of the resource made possible by the
Labiche shale resource (announced Sept12/2012 and Sept13/2012)
which concluded that much of the material above the Buckton
resource hosted in the Second White Speckled Shale Formation is not
waste and represents previously unrecognized recoverable value
incremental to the Buckton resource. Plans are to launch an updated
resource study for the Buckton Zone once all analytical results are
in hand. Two strategically located in-fill holes were completed
within the northern portion of the current Buckton inferred
resource to enhance the drilling database over that portion in
preparation for the Preliminary Economic Assessment Study (Scoping
Study) slated to start by the end of October. An additional eleven
holes planned to continue expanding the Buckton resource northward,
and to further infill over the Buckton and Buckton South Zones,
were deferred due to scheduling and budgetary constraints. The
drilling achieved its principal objectives of drill testing and
confirming the Buckton South Zone with a view to delineating a new
initial resource therefrom, and of exploring and expanding the
Buckton Zone northward with a view to expanding the Buckton initial
inferred resource beyond its current boundaries. Work to follow
will consist of preparation of an updated and consolidated resource
for the Buckton Zone, to combine mineralization identified in the
Second White Speckled Shale Formation and that in the overlying
Labiche Formation, both of which to be re-stated as expanded by the
current drilling. A portion of the existing Buckton inferred
resource might also be upgraded from the Inferred to the Indicated
resource class based on the current in-fill drill holes.
Consideration will also be given to preparation of a study to
estimate a new initial inferred resource from the Buckton South
Zone. In all likelihood, the resource studies to follow will be
carried out concurrently with the planned Preliminary Economic
Assessment Study (PEA Study or Scoping Study) for the Buckton Zone
to incorporate preliminary engineering and pit design variables
into resource classification criteria. This Study was previously
slated to commence in late August but was deferred to late October
to incorporate findings from the current drilling. Field
orientation work for the Study will be completed shortly. The
Qualified Person in connection with this press release and in
respect of the Alberta polymetallic black shale projects is
S.F.Sabag PGeo, President and CEO of DNI, who is responsible for
verification and quality assurance of the exploration information
disclosed in connection with the projects and this release. The
field X-Ray Florescence analytical unit employed as a field
screening tool is an InnovexSystems X-50 Mobile XRF which was
calibrated to certified analytical reference material and to
samples of mineralized Second White Speckled Shale from DNI's prior
drilling at the Property. 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: 71,590,356 DNI Metals Inc. CONTACT: DNI Metals
Inc. - Shahe Sabag, President & CEO (416-595-1195)
orDenisClement, Chairman (416-364-1909) email ir@dnimetals.com.
Alsovisit www.dnimetals.com.
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