New Dimension Resources Ltd. (TSX VENTURE: NDR) and its
wholly-owned subsidiary Dimension Resources (USA) Inc. (the
"Company" or "New Dimension") are pleased to announce that a 2,000
metre Phase I reverse circulation ("RC") drill program has
commenced at New Dimension's Reese River Project (the "Property" or
"Reese River") in Nevada.
The Phase I drill program is being managed by New Dimension,
with International Minerals Corporation ("International Minerals")
funding 100% of the cost of the program. Details of the agreement
between New Dimension and International Minerals are discussed
below.
"New Dimension is pleased to join forces with International
Minerals and Company management is excited that this initial drill
program will be conducted at Reese River, which we consider to have
one of the best undrilled silver targets in Nevada." said Fred
Hewett, President and CEO of New Dimension. "We look forward to
this initial evaluation of Reese River as it has taken two years of
commitment and persistence by the Company's employees to acquire
the Property and to successfully bring it to this drilling
stage."
Reese River Project - Background Information
New Dimension's Reese River Project is located near Austin,
Nevada, with excellent access and infrastructure. Reported
historical silver production from the Austin District exceeded 20
million ounces with the majority of production coming from bonanza
grade veins over a 30 year period, following the discovery of the
district in 1862. The Company believes the Property holds
significant potential for both high-grade underground and
open-pittable silver deposits.
The Reese River Project includes the New York Canyon and Amador
Canyon priority target areas which, along with the intervening
ground, cover over 4.5 square kilometres of very prospective
geology. Within the Property there are numerous historical mine
workings with most of these positioned along a
sedimentary-intrusive contact that hosts much of the known
mineralization in the district.
Although the New York Canyon area is the site of several
historic underground bonanza silver mines, all the underground
workings are inaccessible and there has been no known modern
exploration or drilling on these historic high-grade targets.
In addition to the historical underground vein mineralization,
there is evidence for important wall-rock mineralization that could
support an open pit operation. This evidence includes the results
of 89 rock chip and representative dump samples collected by the
Company over the main target area. All the samples reported
anomalous silver with 21 of these assaying over 100 g/t with an
average of 254 g/t silver and a range from 102 to 601 g/t
silver.
Of the initial 2,000 metres of planned RC drilling,
approximately half will be completed at New York Canyon.
In the Amador Canyon area, located approximately two kilometres
to the northwest of New York Canyon, two styles of silver
mineralization have been identified by the Company. One type of
mineralization is related to shallow-dipping shear zones developed
on bedding planes that had limited drilling by another unrelated
company in 2004. Reported results include 12.2 metres (drill width)
of 286 g/t silver. The Company cannot verify the accuracy of these
results.
A second type of mineralization is related to an easterly
trending fault zone called the Amador Fault that extends
approximately 1,000 metres along Amador Canyon. Both styles of
mineralization saw significant historical mining activity as
evidenced by numerous large mine dumps. The Company believes that
the Amador Fault was an important feeder for these historical mines
and the planned drilling will be the first modern test of its
potential to host significant silver mineralization. In addition, a
previously unknown gold zone was discovered by the Company several
hundred metres east of the silver zone. Here two one-metre chip
samples of altered sediments, exposed through cover approximately
50 metres apart, reported values of 9.8 g/t and 4.8 g/t gold.
The Amador Canyon area will be drill tested with six to eight RC
drill holes totaling approximately 1,000 metres.
The technical information in this news release has been prepared
in accordance with Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by Thomas Burkhart, the
Company's Vice President of Exploration, a Director and a Qualified
Person under NI 43-101.
Letter Agreement
As originally announced on April 2, 2009, International Minerals
can earn a 60% interest in the Reese River Project by funding the
2,000 metre Phase I RC drill program within the first year of
receiving a drill permit (as a firm commitment) and by undertaking
an aggregate of US$1.0 million in exploration expenditures and
maintaining the underlying property obligations over a four year
period. International Minerals earn-in period commenced on August
1, 2009. International Minerals can also acquire an additional 10%
interest (for a total interest of 70%) by funding and completing a
Feasibility Study within eight years (by August 1, 2017).
As a result of International Minerals completing its legal due
diligence and the Agreement receiving all necessary approvals, New
Dimension has received US$10,000 in cash and will receive an
additional US$100,000 in cash or equivalent value in International
Mineral shares (at the election of International Minerals) upon
International Minerals earning a 60% interest in the Property.
Once International Minerals has earned its interest (either 60%
or 70%), either party can be diluted to a 1.0% net smelter return
("NSR") royalty for non-participation in approved expenditures on
the Property. International Minerals is the operator of the
project, with New Dimension supervising and managing, as a
sub-contractor, the initial Phase 1 RC drill program described
above.
About International Minerals
International Minerals is an emerging gold and silver producer,
with an operating silver-gold mine (Pallancata) in Peru and two
gold development projects in Ecuador, together with a strong
balance sheet that includes cash and short term investments of
approximately US$45 million.
About New Dimension Resources
New Dimension is engaged in the acquisition, exploration and
development of quality exploration opportunities throughout the
Americas. Currently, the Company's exploration activities are
focused on mineral properties situated in Nevada. The Company also
maintains strategic properties in Canada and South America,
including the Cenepa Project, which is located along the Ecuadorian
border in northern Peru, and covers the projection of a 20
kilometre long north-south trending mineral belt that features
Kinross Gold Corp.'s (TSX: K) Condor Project and the Fruta Del
Norte gold discovery.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
Fred G. Hewett, P.Eng., President & CEO
This news release may contain forward looking statements which
are not historical facts, such as ore reserve estimates,
anticipated production or results, sales, revenues, costs, or
discussions of goals and exploration results, and involves a number
of risks and uncertainties that could cause actual results to
differ materially from those projected. These risks and
uncertainties include, but are not limited to, metal price
volatility, volatility of metals production, project development,
ore reserve estimates, future anticipated reserves and cost
engineering estimate risks, geological factors and exploration
results. See New Dimension's filings for a more detailed discussion
of factors that may impact expected results.
This news release does not constitute an offer to sell or
solicitation of an offer to sell any securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
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 news release.
Contacts: New Dimension Resources Ltd. Fred Hewett (604)687-7545
or (888)338-2200 New Dimension Resources Ltd. Chris Curran
(604)687-7545 or (888)338-2200 info@northair.com
www.newdimensionresources.com
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