September 25, 2008
Golden Dory Resources Corporate and Project Update
Golden Dory Resources ("Golden Dory") is now trading under the ticker symbol (TSX-V: FA). Golden Dory received final approval from the TSX Venture Exchange and recently completed the qualifying transaction (reverse takeover of 540 Capital Corporation of Calgary). The company has commenced exploration programs on its portfolio of uranium, copper and gold properties in the Province of Newfoundland & Labrador, Canada. Golden Dory recently completed a $1.83 million financing through Canaccord Capital Corporation and MPartners consisting of the sale of flow through and non flow through shares. The company's key mineral properties are described below. Technical reports on all key properties are available on SEDAR.
Golden Dory has interests in 5 high quality projects in the mining friendly jurisdiction of Newfoundland and Labrador, Canada, including 100% interests in the Burin (U), Sterling (Cu/Co), and Brady (Au) projects. The company also holds a 50% interest in the Gabbro Lake (U) property, and a 30% interest in the Portage Lake (Ni/Cu) property.
The Burin Project consists of 2759 mineral claims covering 68,975 hectares in the Fortune Bay and Burin Peninsula regions of southern Newfoundland, near the former mining town of St. Lawrence, where Alcan and others mined fluorspar for over 40 years. The property is underlain by late Neoproterozoic volcanic and sedimentary rocks that are capped unconformably by a Lower Paleozoic shale dominated cover sequence. These units have been intruded by the metalliferous Devonian aged alaskitic St. Lawrence Granite, which is host to numerous base and precious metal occurrences as well as the past producing fluorspar deposits at St. Lawrence. The St. Lawrence Granite is similar in many respects to the host rocks at the Rossing uranium mine in Namibia, one of the world's largest producers of uranium. Extrusive phases of the St. Lawrence granite are also prospective for volcanic hosted uranium as at the large Streltsovska complex in Russia. Newly discovered base metal mineralization is also being evaluated.
In the 1970s, previous workers identified numerous occurrences of moderately to strongly radioactive bedrock returning up to 6500 counts per second (cps) and where historical grab sampling in the Lawn area returned up to 0.33% U3O8 from the Radex showing. Check assaying by Golden Dory personnel returned 0.211% U3O8 from the Radex showing. Numerous geochemical and radiometric anomalies remain unexplained from the 1970s work and reconnaissance exploration by Golden Dory has confirmed large areas of anomalously radioactive intrusive rock using hand held RS 120 Super Scints and RS 125 Super Specs ranging up to 37,000 cps over a background ranging from 200-400 cps. The 2007 airborne magnetic and radiometric survey carried out over portions of the Burin Project by NovaTem on behalf of Golden Dory has been screened for high priority targets for an aggressive ground follow up program which is currently underway. Reconnaissance rock sampling results are currently being compiled and the data will be released in the near future.
The Brady property consists of 419 claims totaling 10,475 hectares located within 3 kms (west) of Route 360 in central Newfoundland. The property lies within the Central Mobile Belt and is underlain by Cambro-Ordovician ophiolitic rocks (serpentinites) of the Dunnage Zone and metasedimentary rocks of the Gander Zone.
In 2002, gold bearing float boulders assaying up to 4.0 g/t Au were discovered by Datan Resources near the north bank of the Northwest Gander River, (Golden Dory has not verified the results). The property was subsequently optioned to Linear Resources who carried out a program of geological, geochemical and geophysical surveying followed by a 15 hole, 2500 meter drill program in 2003/2004. The drilling was successful in defining a mineralized zone (Reid Porphyry) consisting of disseminated pyrite, arsenopyrite and chalcopyrite in brecciated and quartz veined quartz porphyry and mafic volcanic rocks. Drill intercepts including 41.4 m grading 1.1 g/t Au, and 20 meters grading 1.6 g/t Au were returned from separate drill holes (Linear Resources press release; results not verified by Golden Dory). The mineralization has not yet been closed off and is open for expansion. The potential for additional mineralized intrusive bodies is considered excellent. In spite of its success, Linear Resources relinquished the claims deciding to focus on its Mexican assets. Golden Dory obtained the Brady property from Datan Resources in 2007.
The Brady property is contiguous with the Huxter Lane property currently the subject of a joint venture between Yamana Gold and Paragon Minerals Corporation. Drilling has verified the existence of a similar mineralized intrusive to that of the Brady property and has reported drill intercepts of 35 meters grading 2.2 g/t Au (Paragon Minerals website). The partners are currently conducting a third phase of drilling.
A technical report dated January 24, 2008, on the Brady Property by James L. Harris, P. Geo., recommends further work at the Brady Property including line cutting, soil geochemistry, evaluation of existing geophysical surveys, additional induced polarization (IP) surveying and trenching. A diamond drilling program is currently being proposed to verify and expand on the Linear Resources drilling program from 2003. Golden Dory is actively seeking a joint venture partner to advance the project.
The Sterling property is located on the northeast coast of Newfoundland, near the community of Springdale. The property consists of 195 claims (4,875 hectares), and covers a series of developed copper prospects including the Sterling and Lady Pond mines both of which were discovered in the late 1880s and from which small tonnages ( < 500 tons) were mined from surface. The Sterling Property lies within the Notre Dame Subzone of the Dunnage Zone and is underlain by Cambro-Ordovician ophiolitic rocks of the Lushs Bight Group, host to approximately 100 volcanogenic sulphide occurrences including the former Little Bay, Whalesback, and Little Deer mines.
In 1964, Brinex initiated an extensive exploration program in the Sterling area which led to the drilling of 51 holes which intersected stringers, veinlets and zones of massive sulphide. Significant results include up to 5.5% Cu over 4.4 meters including 13.8% Cu over 1.4 meters and wider intervals returning 0.80% Cu over 30.48 meters including 3.10% Cu over 3.04 meters (results are historical in nature and have not been verified by Golden Dory). The Sterling deposit has been drilled to a depth of 250 meters and remains open and appears to be thickening at depth.
Assay results from samples collected in 2007 by Golden Dory personnel from the Sterling prospect returned up to 9.3% Cu, 0.059% Co and 7.88 g/t Ag, and up to 6.8% Cu, 0.137% Co and 6.51 g/t Ag from the Lady Pond Mine (assaying carried out at Eastern Analytical Limited*, in Springdale Newfoundland). The reconnaissance sampling was successful in returning previously unrecognized cobalt values up to 0.137% Co and represents potential for significant by product credit. Golden Dory is currently completing a deep penetrating airborne EM geophysical survey to test for prospective massive sulphide targets deeper than levels previously tested, as well as new zones lying at shallow depths elsewhere on the property. Golden Dory will be seeking a partner to jointly explore the property.
Golden Dory also has the right to earn interests in two other projects in Newfoundland and Labrador. These properties include the Portage Lake (Ni/Cu) property in western Newfoundland where Golden Dory can earn a 30% interest (Benton Resources Corp will earn a 70% interest); and the Gabbro Lake (U) property in western Labrador where Golden Dory can earn a 50% interest in the property with Metal Creek Resources holds the remaining 50%.
Portage Lake Property
Golden Dory can earn a 30% interest in the 593 claim (148 square kilometer) Portage Lake Property from local prospectors Allan Keats and Eddie Quinlan. The property is located in western Newfoundland approximately 100 kilometers southwest of the port city of Corner Brook. The claims cover mafic intrusive rocks of the Ordovician Southwest Brook Complex and are deemed prospective for nickel and copper mineralization. Selected samples collected by Golden Dory personnel from gossanous outcrops on the property have returned grab sample assays of up to 0.25% Ni and 0.32% Cu (Eastern Analytical Limited*). The first year Phase 1 exploration program has commenced and an airborne magnetic and electromagnetic survey is currently being evaluated for follow up prospecting and rock sampling. The Portage Lake property shares similarities with several deposits in Scotland including the Arthrath deposit where historical drilling by Rio Tinto returned 32 meters of 0.62% Ni/Cu (results taken from the British Geological Survey publication "Exploration for Metalliferous and Related Minerals in Britain: A Guide." 2nd Ed., 2000).
Gabbro Lake Property
Golden Dory is a 50% joint owner with Metals Creek Resources in the 393 claim (9825 hectares) Sims Ridge Property situated in western Labrador. The claims lie approximately 130 kilometers northeast of Labrador City, and are best accessed by fixed or rotary wing aircraft. The Sims Ridge Property area has been described by the Newfoundland and Labrador Department of Natural Resources as geologically analogous to the Athabasca Basin and therefore possibly prospective for unconformity type uranium deposits. The property is underlain by a sequence of Proterozoic sediments, the Sims Formation, which is comprised of conglomerate, arkose and quartzite, which overlies deformed metasedimentary rocks of the Paleoproterozoic Labrador Trough.
Limited work in the early 1980s by Labrador Exploration and Mining identified a boulder train of radioactive (up to 8500 cps) float assaying up to 0.18% U3O8 (historical in nature and not verified by Golden Dory Resources). The source of the mineralized float has not been determined. The 2008 program will consist of an airborne radiometric survey followed by prospecting and sampling utilizing a crew based in Labrador City. Metal Creek Resources is the project operator.
Directors and Management
Kevin D. Keats, President and Director - Kevin has over 16 years' experience in the mineral industry and is a co-recipient of the 2006 Bill Dennis Prospector of the Year Award. Kevin is President of A.S.K. Prospecting and Guiding, a Newfoundland based mineral exploration service company operating globally as well as in Newfoundland and Labrador. Kevin is currently a director of Spruce Ridge Resources (SHL-TSX.V).
John Ryan, CGA, CFO, Director - John has over 30 years of corporate and financial management experience and since 2000 has been President, CEO and a Director of Spruce Ridge Resources, an Ontario based mineral exploration company focused on gold and uranium.
Stephen Stares, Director - Stephen has over 15 years' experience in the mineral industry and is currently President of Benton Resources Incorporated, an Ontario based mineral exploration company focused on nickel copper and PGEs.
Dean Fraser, P. Geo., Director - Dean is a professional geophysicist with 15 years' industry experience nationally as well as internationally, and is currently serving as Exploration Manager for Bayswater Uranium, a global uranium explorer.
Cyril Reid, Director, Operations Manager - Cyril is CEO of privately owned Datan Resources, and has 15 years' experience in the mineral industry. Datan has an extensive portfolio of exploration properties in Newfoundland and Labrador.
Roland Quinlan, Director - Roland is President of Quest Inc., a Newfoundland based mineral exploration company and has over 15 years' experience in the sector.
Timothy Froude, P. Geo., VP Exploration - Tim has over 20 years' experience in the mineral exploration industry and has served as a senior geologist and VP Exploration for several highly regarded exploration companies including Crosshair Exploration & Mining Corp., and Cornerstone Resources Inc.
David Evans, M.Sc., P. Geo., Exploration Manager - David has over 25 years' experience most of which as a senior researcher with the Newfoundland Department of Natural Resources focusing on gold and base metal deposits in central Newfoundland and is widely considered as one of the leading experts on the metallogeny of Newfoundland.
Spencer Vatcher, P. Geo., Lands Manager - Spencer has over 20 years' experience in the exploration sector including 13 years with the Newfoundland Department of Natural Resources. Spencer most recently served as manager of the Mineral Incentive Program, an industry support program offered to junior exploration companies.
Gordon Fretwell, LLB., Corporate Secretary - Gord has been practicing corporate law for nearly 30 years of which the past 16 have been spent specializing in the natural resources sector. He currently sits as a director or senior officer of several high profile companies including Northern Dynasty Minerals Ltd., Benton Resources Corporation, and International Royalty Corporation.
* Eastern Analytical Limited has been in operation for more than 30 years and is well known as a reputable and dependable company throughout the Canadian mining and mineral exploration industry. Eastern uses government certified standards prepared by Canmet as well as duplicates, blanks and internal standards.
**Accurassay Laboratories is a privately owned Canadian analytical laboratory offering accredited mineral analysis to the mining and exploration industry. The company offers a variety of analyses many of which, including gold, platinum, palladium, copper, nickel, and cobalt, are accredited by the Standards Council of Canada under ISO/IEC Guideline 17025.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101.
For further information contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201.
Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Golden Dory will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory.
(Not for dissemination in the United States of America)
Distributed by Filing Services Canada and retransmitted by Marketwire
For further information contact Kevin D. Keats President and CEO Golden Dory (709) 256-4201
SOURCE: Golden Dory Resources