Golden Dory Resources Corp announce that it has reached an agreement, subject to Venture Exchange approval, with Joint Venture partner Metals Creek Resources Corp whereby Golden Dory can earn up to a 70% interest in the Gabbro Lake Iron Ore property in the prolific Labrador Trough. Currently the project is operated under a 50/50 joint venture between Golden Dory and Metals Creek with Metals Creek as project operator.
The Gabbro Lake project is strategically located in the eastern portion of the Labrador Trough, 50 kilometers east of the rail line servicing the Schefferville and Labrador City mining camps and 8 kilometers from an all-weather access road. The project is host to at least four discreet airborne magnetic targets up to 3.8 kilometers in length and locally 500 m in width. Within the Gabbro Lake property, the magnetic data defines the targets as a structurally folded and faulted iron formation and shows a number of areas that may be thickened by the structural complexity. Prior to this joint venture, no one is known to have carried out any previous exploration on these iron formation prospects.
So far four main target areas, Anomalies A to D have been identified at Gabbro Lake with the most significant highlighted below of which B & D are the first priority targets:
1. Anomaly A - 1.4 kilometers long, surface sampling returning 33.77% Fe2O3
2. Anomaly B - 3.8 kilometers long, surface sampling returning from 46.06% Fe2O3 to 58.36% Fe2O3
3. Anomaly C - 1.2 kilometers long, no surface sampling to date
4. Anomaly D - 1.6 kilometers long, surface sampling returning from 27.98% Fe2O3 to 75.38% Fe2O3.
A total of 34 representatives grab samples collected by Golden Dory and Metals Creek from outcrop and float returned assays ranging from 11.42% up to 75.38% Fe2O3. Approximately 79% of the samples measured greater than 25% Fe2O3 including 62% of the samples over 40% Fe2O3.
The iron formation samples were analysed for Fe2O3 and other major oxides by XRF Fusion at Activation Laboratories in Ancaster, Ontario. The Company is also completing Davis Tube analytical work on a series of samples which will be reported when they become available.
At this early stage, the Gabbro Lake property compares favourably with the advanced Kami Project owned by Alderon Iron Ore Corp., located 100 km to the southwest of Gabbro Lake. The defined geophysical signatures at Gabbro Lake are very similar in size and in strength of magnetic signatures with those associated with Alderon Kami project which hosts NI 43-101 compliant resources of 490 Mt 30% Fe indicated and 598 Mt 30.3% Fe inferred. In terms of overall project size, the Gabbro Lake property is approximately 20% larger than Alderon Kami project, consisting of 9275 hectares versus 7625 hectares for Kami.
A proposed 1,200m Phase 1 diamond drilling program is planned for, immediately following spring breakup which is expected to be late June. Diamond drilling and support services contracts are expected to be awarded shortly. The Company is in its final stages of receiving required exploration approvals while an archaeological assessment is currently underway.
The JV Agreement
Under the joint venture agreement, subject to TSX Venture approval, Golden Dory will become operator and can earn an initial 60% interest by issuing 1.5 million shares of Golden Dory to Metals Creek and by funding the 2012 Exploration Program which will include a minimum of 1,200 m of diamond drilling. Golden Dory can earn an additional 10% by issuing an additional 2.5 million shares to Metals Creek and by providing a NI 43-101 compliant resource report by the fourth anniversary of the agreement.
Mr Kevin Keats President and CEO of Golden Dory states that "We are very excited about this opportunity we have in one of the leading Iron Ore districts of the world. The project size, as well as the number and quality of targets compare very favourably with other significant developments in the district including the Kami Project owned by Alderon Iron Ore Corp. The Gabbro Lake project gives Golden Dory an excellent entry point into a proven jurisdiction and we are currently preparing for the first drilling to ever take place on the property."
Source - Golden Dory Resources
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