SIGNIFICANTLY ENLARGED OVERALL RESOURCE
- New NI 43-101 resource estimate following highly successful 2007/08
drilling campaign
- Resource category upgraded to Indicated for 60% of mineralization
- Indicated mineral resource of 117.4 million at 0.51% copper, 0.07 g/t
gold and 1.7 g/t silver, using a 0.2% Cu cut-off
- Inferred mineral resource of further 84.5 million tonnes at 0.46% copper,
0.07 g/t gold and 1.9 g/t silver, using a 0.2% Cu cut-off
- Total in-situ copper of 2.17 billion lbs - 52% increase from previous
estimate
- Total in-situ gold of 449,000 oz - 75% increase from previous estimate
- Presence of silver mineralization confirmed and quantified
- Resource continues to be open-ended both at depth and extremities
HIGH GRADE ZONE CONFIRMED AND QUANTIFIED
- Large area of high-grade copper-gold-silver mineralization in central
portion of Cerro Chorcha confirmed
- Indicated mineral resource of 24.1 million tonnes at 0.97% copper, 0.16
g/t gold and 3.1 g/t silver, using a 0.65% Cu cut-off
- Inferred mineral resource of further 13.3 million tonnes at 0.86% copper,
0.16 g/t gold and 3.2 g/t silver, using a 0.65% Cu cut-off
- Mineralization of high-grade zone open at depth and in multiple
directions
- High-grade zone surrounded by a medium grade envelope, with copper grades
ranging from 0.4% to 0.6%
OUTLOOK: 2008/09 DRILLING CAMPAIGN
- Drilling strategy for funded 2008/09 campaign determined and to commence
imminently
- Targeted drilling programme of over 10,000 meters to focus on high-grade
zone
NEW YORK, Sept. 4 /PRNewswire-FirstCall/ -- Dominion Minerals
Corporation (OTC: DMNM) ("Dominion" or the "Company") and its JV partner
Bellhaven Copper & Gold ("Bellhaven") are delighted to announce today an
update to the April 2006 NI 43-101 compliant technical report and mineral
resource estimate for the Cerro Chorcha porphyry copper project in Panama.
Based on the new resource estimate, the Cerro Chorcha project hosts a
porphyry copper deposit with an Indicated mineral resources of 117.4
million tonnes grading 0.51% Cu, 0.07 g/t Au and 1.7 g/t Ag, and, in
addition, an Inferred mineral resource of 84.5 million tonnes grading 0.46%
Cu, 0.07 g/t Au and 1.9 g/t Ag, using a 0.2% Cu cut-off grade. As a result,
total in-situ copper has risen to 2.17 billion lbs, a 52% increase from the
previous estimate, and in-situ gold has risen to 449,000 oz, a 75% increase
from the previous estimate. The presence of silver mineralization has been
confirmed and quantified for the first time as part of this NI 43-101
report.
Importantly, and further to the announcement made by Dominion on 6 May
2008, the update NI 43-101 technical report also confirms the presence of a
large area hosting high-grade copper-gold-silver mineralization in the
central portion of Cerro Chorcha; please see below for additional
information regarding the high-grade zone.
This follows the completion of the highly successful 2007/08 drilling
program consisting of 11 holes for a total of 3,610 metres and the
completion of a high-precision 3D topographic survey which facilitated the
resource category upgrade. The update NI 43-101 technical report was
prepared by Michael D. Druecker, Ph.D., P. Geo and Independent Qualified
Person for Damien Consultants of Houston, Texas; the updated resource
estimate was prepared by Robert L. Sandefur, Senior Resource Analyst and
Independent Qualified Person for Chlumsky, Armbrust, and Meyer L.L.C.,
(CAM) of Denver, Colorado.
High-grade zone
Further to the announcement made on 6 May 2008, the report confirms the
presence of an area with high-grade copper-gold-silver mineralization
within the central portion of the property. This high-grade zone has an
Indicated mineral resource of 24.1 million tonnes grading 0.97% copper,
0.16 g/t gold and 3.1 g/t silver, and, in addition, an Inferred mineral
resource of 13.3 million tonnes grading 0.86% copper, 0.16 g/t gold and 3.2
g/t silver, using a 0.65% copper cut-off grade. The mineralization remains
open at depth and in multiple directions, and all holes drilled to date
appear to indicate potential for the significant extension of the
high-grade zone. This will be investigated further in the 2008/09 drilling
campaign comprising 26 holes over a total of 10,400 meters, which shall
include a deep drilling campaign consisting of 13 holes totalling c. 6,550
meters (see below for further detail).
The report further confirms that, at Cerro Chorcha, gold grades can be
significant and tend to correlate well with high-grade copper
mineralization. Gold values were consistently assayed for in all drill
holes. Previous trench results returned average grades of 0.66 g/t Gold and
9.72 g/t Silver over a trench length of 585 meters. Considering the
meaningful intersects encountered at several holes drilled to date
(previously announced in detail), the Company and Bellhaven expect copper
and gold grades to increase as the high-grade zone is explored at further
depth.
New NI 43-101 compliant resource estimates
Table 1: New mineral resource estimate (0.2% Cu Cut-off)
Tons
(million) Cu (%) Au (g/t) Ag (g/t)
Indicated 117.4 0.51 0.07 1.72
1.31 bn lbs Cu 266,000 oz Au 6.50 mm oz Ag
Inferred 84.5 0.46 0.07 1.87
0.86 bn lbs Cu 183,000 oz Au 5.08 mm oz Ag
Table 2 - New mineral resource estimate (0.65% Cu Cut-off)
Tonnes
(million) Cu (%) Au (g/t) Ag (g/t)
Indicated 24.1 0.97 0.16 3.06
0.51 bn lbs Cu 121,000 oz Au 2.37 mm oz Ag
Inferred 13.3 0.86 0.16 3.20
0.25 bn lbs Cu 68,000 oz Au 1.37 mm oz Ag
This new mineral resource estimate was prepared by CAM utilizing an
inverse distance squared block model based on assay results from 46 drill
holes (10,646 meters) and includes all pertinent data through June 2008.
In-situ copper, gold and silver
New in-situ copper, gold and silver % increase vs.
previous estimate
Contained Contained Contained
Cu Cu Au Ag
cut-off (bn lbs) (oz) (mm oz) Cont'd Cu Cont'd Au Cont'd Ag
0.2% 2.17 449,000 11.58 +52% +75% Previously
unquantified
0.4% 1.52 344,000 7.56 +44% +60%
0.65% 0.76 189,000 3.74 Previously unavailable -
prior to discovery of
high-grade zone
Pini Althaus, Chairman and CEO of Dominion Minerals commented as
follows:
"We are delighted to announce that our focussed 2007/08 drilling
campaign delivered these substantial increases in tonnage and grade as well
as the resource category upgrade. In addition, we are particularly pleased
to have independent confirmation of the presence of a sizeable high-grade
zone at the core of our deposit. All this confirms the enormous potential
of Cerro Chorcha. We are confident that the substantially larger and
imminent drilling program, for which we already completed a successful
US$10 million capital raise recently, will continue to deliver on our
expectations in terms of size, quality and scale of this unique orebody,
located in Panama, a country of enormous resource wealth."
Julio Benedetti, President and CEO of Bellhaven commented as follows:
"These results are very encouraging and confirm the effectiveness of
the 2007/08 drilling program having substantially increased the mineral
resources while also confirming our expectations of the near surface high
grade zone. We look forward to the initiation of the 2008/09 drill program,
which is scheduled to start this month."
Outlook: 2008/09 drilling campaign and beyond
Three principal objectives have been identified for the upcoming
drilling campaign 26 holes, over more than 10,000 meters):
-- High grade zone - deep drilling: All holes drilled to date (vertical
depth of 230 meters), appear to indicate potential for the significant
extension of the high-grade zone at further depth as evidenced by
mineralized structures observed in drill core and on cross sections. This
potential will be further investigated in a deep drilling campaign (up to
600 meters depth) consisting of 13 holes totalling approximately 6,550
meters in the high-grade zone.
-- Step-out drilling: A "step-out" drill program of 9 holes totalling
2,850 meters to provide additional continuity to the geological model and
further expand and define the mineralization at Chorcha which remains open
in almost every direction.
-- New exploration targets: Based on geological, geochemical and
geophysical (aeromagnetic) data, several anomalous target areas within
Cerro Chorcha remain untested adjacent to known mineralized areas. The
Company and Bellhaven wish to investigate this further over the coming
months in a targeted drilling exercise of 4 holes, totalling 1,000 meters.
The Company and Bellhaven expect the 2008/09 campaign to commence in
September 2008 and its results to be reflected in an updated resource
estimate, which is expected to be published in the first half of 2009,
following which a pre-feasibility study is expected to be published by the
end of 2009.
The resource estimates summarized in this release will be filed as part
of an update technical report compliant with National Instrument 43-101,
which will be posted on SEDAR and on the websites of Dominion and Bellhaven
within 45 days.
Mineral resources do not have demonstrated economic viability and
future drilling and scoping, pre-feasibility and feasibility studies will
determine what portion of the indicated and inferred resources can be
classified into a mineable category.
This news release has been prepared under the supervision of Michael D.
Druecker, Ph.D., P.Geo., who serves as the Qualified Person as defined by
National Instrument 43-101 responsible for ensuring that the geological
information in this release is accurate.
About Dominion Minerals Corp.
Dominion Minerals Corp. is a US-based copper and gold exploration and
development company focused primarily on its Cerro Chorcha Porphyry Copper
Project in Panama.
For more information please visit http://www.dominionminerals.com
Forward-Looking Statement Disclaimer
This press release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address continuing to Canada, exchange
listing application, additional financing, seeking and acquiring new
projects and gaining recognition are forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include, but are not limited to, the market
price of gold, general economic conditions, market and business conditions,
statements or information with respect to known or unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks
and uncertainties which could cause actual events or results to differ from
those reflected in the forward-looking statements or information,
including, without limitation, risks and uncertainties relating to the
Company's plans at its mineral properties, the interpretation of drill
results and the estimation of mineral resources and reserves, the geology,
grade and continuity of mineral deposits, the possibility that future
exploration, development or mining results will not be consistent with the
Company's expectations, metal recoveries, accidents, equipment breakdowns,
title matters, labor disputes or other unanticipated difficulties with or
interruptions in production and operations, the potential for delays in
exploration or development activities or the completion of feasibility
studies, the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, failure to obtain adequate financing on a timely
basis, the effect of hedging activities, including margin limits and margin
calls, regulatory restrictions, including environmental regulatory
restrictions and liability, the speculative nature of mineral exploration,
dilution, competition, loss of key employees.
Investors are cautioned that any such statements are not guarantees of
future performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. In
addition, the Company's business and operations are subject to the risks
set forth in the Company's most recent Form 10-KSB, Form 10-QSB and other
SEC filings which are available through EDGAR at http://www.sec.gov. These are
among the primary risks we foresee at the present time. The Company assumes
no obligation to update the forward-looking statements.
SOURCE Dominion Minerals Corporation
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Related links:
http://www.dominionminerals.com
CONTACT:
Pini Althaus, President & CEO, Dominion
Minerals, +1-212-231-8171, pini@dominionminerals.com; or Robert
Stafler, Partner, Excellion Capital, +44-203-008-6875,
robert.stafler@excellioncapital.com
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