Gold project AU33 WEST: surface work results

Dios Exploration and its  partner Osisko proceeded this fall with surface work on the AU33 West gold project (see October 24, 2012 post).

Dios Exploration recently reported good news after first assay results.

 Ten trenches were dug up to test soil geochemical targets or to extend known gold mineralized occurrences.

The best results come from the Héberto occurrence, in a mylonityzed tonalite, a granite type. The results returned grades as follows :

  • 5.0 grams per ton in gold over  5.25 m
  • 1.12 grams per ton in gold over  4.5 m

It is important to note that analysis within the tonalite was realized withinan homogeneous rock and not in veins (eg. Quartz). This could suggest interesting gold mineralization tonnage.

Other anomalous results from 0.5 to 1.1 g/t in gold on brackets of 0.75 to 2.25 m were as well obtained on other trenches.

These trenches allowed a good exposure of the mineralized occurrences and a better understanding of the vectors in place controlling the mineralization.

 Osisko

Remember that Osisko is a major partner who can acquire 51% of the AU33 WEST property. This partner has to incur  5,000,000 $ in exploration and  700,000 $as payments over 5 years.

The work previously mentioned is part of this partnership and is funded 100% by Osisko

Later on, if Osisko desires, an additonnal participation of 9 % is possible with further work of 9,000,000 $ over  5 years. Another 10 % is as well available with the financing of a feasibility study.

Osisko is a worldwide mining corporation based in Montreal for aquisition, exploration, developpement, and exploitation of auriferous properties.

 Some photos of the work (click to enlarge)

 

AU 33 WEST Gold Project: Surface Trenching Work with Backhoe

Dios Exploration announced on September 24th, that two backhoes were moved this Fall on AU 33 WEST Gold Project.

This is major work for this project.

The trenching work is taking place this fall. Detailed rock sampling was undertaken and rocks to be assayed. The results will soon be published…

Why all this agitation? Because Dios Exploration :

  1. Thinks of AU33 West in James Bay as its project with the best mining potential
  2. Joint ventured with a major company, Osisko, to fund total expenses over a 5 year period. The partnership is renewable for another 5 year period afterwards.
  3. Considers that all main factors are in place to discover an economical mining deposit easily exploitable: surface exploitation and road infrastructures in proximity, the Eastmain 1 Hydro Power Complex road.

The best summer 2012 sampling results of rock outcrops and soils sustain such enthusiasm:

G/t gold

ROCK DESCRIPTION

17.3 Granodiorite, fine grained, beige, rusty, 2% pyrite, quartz vein of 4 cm
12.6  Granodiorite, fine grained, beige, rusty, 3% pyrite, magnetite
11.8 Tonalite, fine grained, strongly oxidized, quartz veinlet network, disseminated pyrite mainly in quartz veinlets
4.7 Granodiorite, medium grained, beige, magnetic, rusty in places
1.7 Granodiorite  with pegmatite, aplite and felsic dikes, quartz-hematite veinlets with  traces pyrite

Please note that this geological model bears a lot of similarities with that of the Malartic mine , operated by Osisko, with a gold grade of 1 g/t.

Geographically, the project is located a few hundred kilometers north north-east of Matagami. Geologically, it is located in the Opinaca Eastmain emerging gold camp , some 60 km away from the world class Eleonore  gold deposit developed by Goldcorp.

Other recent information on AU33 West Gold Project:

We will keep you informed on the upcoming news about this project.

 

Summary of activities from April to June 2012

Summary of activities from April to June 2012

Exploration expenses totalling $420,069 on Shipshaw and Shadow properties, as follow:

Shipshaw Shadow 14 Karats 33 Carats Others Total
202 671 $ 83 717 $ 59 101 $ 25 654 $ 48 926 $ 420 069 $

 

HIGHLIGHTS

Shipshaw (Niobium and Rare Earths):

  •  Important drilling campaign started in March around Niobec mine;
  • Discovery of a new alkaline complex (Falardeau). Pending drill results.

Shadow (Diamond and Gold):

  •  Processing of kimberlite indicator minerals for promising diamond targets.
  •  Soil survey on prospective 2 by 4 km gold sector up-ice of a dispersal train reaching 3,510 ppb gold in till, poorly outcropping, near a power line.

Au 33 West property (Gold):

Another project, entirely financed by Osisko. They realized two exploration campaigns with a field team of 6 people. A new soil survey was completed and a detailed rock sampling of outcrops located in the centre of the property where mineralized occurrences were discovered in 2011.   Follow up is planned in the upcoming weeks.

 

CASH FLOW SITUATION

The working capital increased by $76,480 during the second quarter going from $1,802,567 as at March 31, 2012 to $1,879,047 as at June 30, 2012. The increase is mainly due to the reallocation from non-current investments to current investments and an option payment of $75,000 received during the quarter.

The Company considers the cash on hand sufficient for the known obligations.  As at June 30, 2012, the Company did not have any debt or any financial commitments in the upcoming quarters.

 

COMPLETE MANAGEMENT INTERIM REPORT FOR THE PERIOD ENDING JUNE 30TH, 2012