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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.
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)
Recent exploration in a part of this project highlighted a gold and copper zone.
Works allowed targeting of a 2-3 km by 8 km sector of a tonalite (grey granite) phase with good gold potential.
The geological model applied is a porphyry-type, characterized by a gold-silver-copper-bismuth association.
It is the model wanted
The interesting minerals are gold and copper. The rock basement is a mildly mineralized tonalite.
This nonetheless offers excellent potential for a high tonnage gold mine, similar to the Malartic gold mine.
This mine, which has been exploited for many years, extracts rocks with average grade of 1 g/t.
On the 33 CARATS project, Dios discovered on surface the following:
- Erratic glacial boulders with grades up to 7.76 g/t gold
- In place rock outcrops assaying up to 4.93 g/t gold
Of the 60 analyzed samples containing disseminated copper sulfides, 26 had gold grades superior to 0.463 g/t.
The 33 CARATS project is wholly owned by Dios. At the moment, this project is one with the best mining potential. It is very promising and the future 167 road will cross through these claims.
To properly outline the more highly mineralized zone, 1 200 organic earth (humus) samples were already collected (soil-geochemistry).
Soils feed on proximal metals. Therefore it is possible to extrapolate analytical results from the rock basement.
If high concentrations are recurring, it could possibly outline excellent drilling targets.
According to precise planification to determine, these drillings could be done in 2013.
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 $|
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.
Porphyric type gold 33 Carats project returns 60 tonalite samples with disseminated copper sulfides
33 CARATS: Upper Eastmain area, James bay, Northern Quebec
Located NW of the Eastmain gold mine, this project encloses granodioritic-tonalitic rocks with disseminated chalcopyrite (copper sulfide)-pyrite mineralization and quartz veins which show potential for gold porphyric mineralizations.
In July-August 2012, Dios completed a spectrometry and prospecting-mapping follow-up (325 rock samples with sixty disseminated copper sulfide bearing samples) targeting the tonalitic phase of Erasme Lake intrusive. There is a clear gold-silver-copper-bismuth association typical of gold porphyry deposits.
Dios has also just completed a soil sampling (1200 humus samples) in the same area to find drill targets.
Many tonalitic glacial boulders returning between 1.0 and 3.2 g/t Au discovered last Fall by Dios are located up ice of a gold in till train (252-2,090 ppb Au).
The Otish Mountains road which will go to the diamond Renard deposit passes through the prospective area of the soil grid.
14 KARATS: 50-75 km NE of 33 Carats
During the same period, Dios undertook prospecting-mapping on this project located between the Leran- Patamisk lakes.
It covers a volcano-sedimentary sequence at the contact of sub-provinces La Grande (equivalent) and Opinaca and up ice of the gold in tills (356, 534, 583, 642, 1160, 2230 ppb Au).
Almost 230 rock samples were grabbed and sent to laboratories and was also completed a glacial till sampling (69 samples) program.
SHADOW : Opinaca-Eastmain 1 – Lower Eastmain area, James bay, Northern Quebec
A summer exploration program on the southern part of this gold project was completed in the Eastmain-1 sector.
It comprises soil sampling (1300 humus samples) and prospecting-mapping (53 rock samples). It specifically targeted a volcano-sedimentary contact folded on the edge of a felsic intrusive, located up ice of many goldbearing tills (241, 983, 1120, 3510ppb Au).
LECARON: Shadow project adjacent
Dios plans other mapping-prospecting work on this gold project which will target more precisely a sector covering mafics volcanics up ice of gold tills (208, 236, 265, 285, 666, 921, 925, 1035 ppb Au) where 37 rock samples were taken in 2012.
A till sampling campaing (20 samples) was undertaken looking for other targets in the same area.
AU 33 WEST: same sector than Le Caron
Still in the same area, on this gold project, partner Osisko has completed a second year of soil samplings (140 samples of B horizon) and prospecting-mapping (364 rock samples with spectometry-K readings) which targeted porphyric mineralizations in the intrusive rocks.
More work is planned for the fall, results pending.
Rock samples were sent to the ALS-CHEMEX laboratories and IOS Géoscientifiques completed glacial till sampling in these area and also completed soil sampling for Dios.
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