VANCOUVER, Sept. 13, 2018 /CNW/ - New Dimension Resources Ltd. (TSXV: NDR) (the "Company" or "New Dimension") is pleased to report results from the Phase I diamond drill program targeting high-grade gold and silver mineralization at its 100%-owned Las Calandrias Project (Figure 1).
This represents the first drill program to be undertaken at Las Calandrias since New Dimension's acquisition of the Santa Cruz Portfolio from Sandstorm Gold Ltd (TSX: SSL, NYSE: SAND) in May 2018.
An updated Mineral Resource Estimate for the Las Calandrias Project is currently underway and remains on-track for completion during the second half of September 2018.
A total of 25 diamond drill holes for 3,695m were completed at the Las Calandrias Project. Drilling was primarily focused on extending known high-grade gold mineralization at the Calandria Norte and Morena vein/breccia zones (Figures 2 & 3). All drill holes successfully intersected their respective target structures.
Successfully intersected high-grade gold mineralization outside of the northern limit of the existing mineral resource. Assays received to date include:
4m @ 11.0 g/t Au + 49 g/t Ag from 58m downhole (approx. true width 3.0m)
CND04 represents a 35m step-out from existing drill hole CND-134 (3.6 m @ 7.7 g/t Au + 10 g/t Ag)
Morena vein/breccia zone, located 250m NW of the Calandria Norte structure.
Assays returned from step-out drill hole CAL18-12 included:
4.2m @ 6.9 g/t Au + 13 g/t Ag from 18.8m downhole (approx. true width 3.2m)
Including 1.6m @ 12.0 g/t Au + 22 g/t Ag from 19.7 m downhole
Results from CAL18-12 extend known gold mineralization 50m to the SW of existing drill hole CND250 (2.5m @ 5.8 g/t Au + 48.5 g/t Ag).
Drilling completed to date indicates a significant new gold-silver zone developing in the Morena vein/breccia system. Initial drilling has focused on the southern end of the Morena structure, with at least 300m of northern strike extent interpreted to remain for drill testing.
Eric Roth, New Dimension's CEO, commented today: "I am pleased to be able to report that our Phase I drill program at the Las Calandrias Project has successfully intersected extensions to known high-grade gold and silver mineralization in both the Calandria Norte and Morena vein/breccia zones. In particular, the adjacent Morena zone retains significant potential for expansion to both the north and south."
Las Calandrias Project Overview and 2018 Drill Results
The primary focus of the 2018 drill program at Las Calandrias was to extend known high-grade mineralization at both the Calandria Norte and Morena vein/breccia zones. A total of 25 drill holes were completed, and all successfully intersected their respective target structures. Summaries of the assay results received and technical data for the 2018 drill holes are given in Tables 1 and 2, respectively.
At Calandria Norte, drilling in the CND-04 area (4m @ 11 g/t Au + 49 g/t Ag from 58m downhole; Figure 4) successfully intersected high-grade gold-mineralization outside the current mineral resource envelope (Indicated Category of 49,000 gold equivalent ("AuEq1") oz @ 9.35 g/t AuEq using a 3 g/t AuEq cut-off; further details in News Release dated February 20, 2018). These results will be included in the mineral resource update for Las Calandrias, which is due for release during the second-half of September 2018
Eight drill holes were completed in the Morena vein/breccia system, with results indicating the potential for the development of a significant new gold-silver zone. To date, drilling in Morena has been focused on the southern end of the Morena structure, with at least 300m of northern strike extent interpreted to remain for drill testing. Step-out drill hole CAL18-12 (4.2m @ 6.9 g/t Au + 13 g/t Ag: Figure 5) successfully extended known mineralization intersected by a previous operator in CND250 (2.5m @ 5.8 g/t Au + 48.5 g/t Ag). Drill results from this program suggest a more northerly strike to the Morena system than previously expected.
Mineralized intercepts at both Calandria Norte and Morena are typically defined by mixed oxide and sulfide (pyrite-marcasite) mineralization to depths around 40m vertically below surface, with sulfides (pyrite-marcasite) dominating below 40m (Figure 6). Mineralization at both Calandria Norte and Morena is hosted in a rhyolite dome which has been emplaced in a thick volcaniclastic rock sequence.
Table 1. Summary of assay results for Las Calandrias 2018 drilling
Calandria Norte drill holes
Morena drill holes
*True widths are calculated using both the dip of the drill hole and estimated dip of the mineralized zone.
1 AuEq oz are calculated by New Dimension with reference to a cut-off grade of 0.3 AuEq/t for oxide and transition material, and 0.7 AuEq/t for primary, and by multiplying mineralized tonnes by gold equivalent grade, dividing by 31.1, and assuming 100% metallurgical recovery.
Las Calandrias Mineral Resource Update
Ontario-based consulting group AGP Mining Consultants Inc. reports good progress on the updated Mineral Resource Estimate (MRE) for the Las Calandrias Project. This MRE will incorporate assay data from both historical and current drilling at Las Calandrias, and remains scheduled for release during the second half of September 2018.
Drill Target Generation
Drill target generation work on the 1.3km long Despreciada vein zone, a multiphase epithermal vein system located approximately 500m NW of the Morena structure, also continues in parallel. Surface sampling along the Despreciada vein by a previous operator returned gold and silver values ranging from below detection limit to 106 g/t gold and 510 g/t silver. The Despreciada vein zone also lies with the surface rights ("estancia") owned by the Company, and therefore represents an immediate priority for further work.
Sierra Blanca and Regional Prospects
With the finalization of the Patagonian winter, drill target generation activities at the Company's 100%-owned Sierra Blanca Project resumed in earnest.
Table 2. Summary of technical data for the Las Calandrias 2018 Drill Program
62 m ext
75 m ext
80.5 m ext
Quality Control and Assurance
Mineralized intervals presented in Table 1 are given as both drill intersection widths and estimated true widths of mineralization. Drill core obtained from the diamond drill program is HQ-sized. All drill core was photographed and quick logged prior to sampling. Standard sampling protocol involved the halving of all drill core and sampling over intervals determined by geology (and generally not exceeding 1m in clearly mineralized sections), with one half of the core being placed in a sealed sample bag and dispatched to the analytical laboratory for analysis. Samples were dispatched to Alex Stewart's sample preparation facility in Puerto San Julian, with pulps subsequently being sent to the Alex Stewart's analytical lab in Mendoza. All samples have been analysed for gold using a 50g Fire Assay with AAS finish (Analysis AU4-50), in addition to a 39 element ICP-AES analysis of an aqua regia digest (Analysis ICP-AR-39). Standards and blanks were inserted in to the analytical sequence on the basis of one standard plus one blank for every 25 samples.
On Behalf of the Board of New Dimension Resources Ltd.
Eric Roth, Ph.D., FAusIMM
President & CEO
About New Dimension Resources
New Dimension is engaged in the acquisition, exploration and development of quality mineral resource properties throughout the Americas, with a focus on precious metals. The Company's current focus is on the discovery through drilling of new high-grade gold-silver resources at its 100%-owned Las Calandrias, Los Cisnes and Sierra Blanca projects, all located in the highly prospective Deseado Massif of Santa Cruz Province, southern Argentina. The Company also holds an option on the Savant Lake gold project in Ontario, together with an active JV interest (with Yamana Gold) in the Domain gold project in Manitoba.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by Eric Roth, the Company's President & CEO, a director and a Qualified Person under NI 43-101.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension, including the timing, completion of and results from the drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and Uncertainties" in New Dimension s most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to purchase securities. The securities to be offered in the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.
SOURCE New Dimension Resources Ltd.