Dixie Gold Inc. Announces Commencement of Exploration Program by Orano Canada at the Preston Uranium Project
VANCOUVER, March 9, 2020 /CNW/ - Dixie Gold Inc. (TSX VENTURE: DG) ("Dixie Gold" or the "Corporation) is pleased to announce that the Corporation's project option partner Orano Canada Inc. ("Orano Canada")(previously AREVA Resources Canada Inc.) has commenced its winter 2020 exploration program at the Preston Uranium Project located in the Western Athabasca Basin near NexGen Energy Ltd.'s high-grade Arrow deposit and Fission Uranium Corp.'s Triple R deposit.
Preston Uranium Project Map:
https://www.dixiegold.ca/preston-media
"Dixie Gold is pleased to have industry-leader Orano Canada moving our Preston Uranium Project forward with their expertise and resources. The current geophysics and ground program is designed to help refine future drill targets.
I would also like to take this opportunity to report that in addition to the active exploration work taking place at our project base in Saskatchewan, Dixie Gold is simultaneously progressing with plans to move inaugural exploration forward at our Red Lake Gold Project. With spot gold prices currently around $2,300/oz in Canadian dollars, we believe our Red Lake Gold Project (which is immediately adjacent to Great Bear Resources Ltd.) also offers Dixie Gold's shareholders a unique exploration opportunity and provides a compelling value proposition," stated Ryan Kalt, Chief Executive Officer of Dixie Gold.
Preston Uranium Project Winter 2020 Program:
Orano's exploration program on the Preston Uranium Project will consist of DC resistivity ground geophysics on the JL and Canoe grids and the B conductive area. To-date, exploration on the Preston Uranium Project has consisted of a traditional approach of defining conductors via ground EM surveys and diamond drilling.
The objective of this $735,000 exploration program is to use the DC resistivity method to further characterize the EM conductors by providing information about possible clay, silicification or associated alteration in the vicinity of conductors adding another layer of information to prioritize areas to be drill tested. Historical geophysical lines will be utilized at the JL and Canoe grids, and 15.9 km of line cutting will be carried out at the B conductive area.
Previous diamond drilling on the property has intersected numerous and extensive, well developed and commonly graphitic ductile shear zones, that were clearly reactivated over time. These structures correlate with elongated NNE-trending magnetic lineaments. A later brittle event is common in both drill core and the magnetic data and could provide a locus for mineralizing fluids. The shear zones are also commonly altered and locally metal enriched (pyrite-pyrrhotite-chalcopyrite). The basement rocks intersected are complexly deformed supracrustal rocks; largely graphitic orthogneiss with minor paragneiss, intruded by Archean granitoids. These lithologies are common to the proven uranium mineralization in the Western Athabasca region (Shea Creek and Patterson Lake corridor deposits).
Proposed Work on the JL grid:
The 2018 ML-TEM survey on the JL grid identified eight different conductors with strike lengths between 800 m and 2,800 m. Orano plans to carry out 16.0 km of DC resistivity over four of the EM profiles to help determine which of the numerous JL grid EM picks should be tested first with drilling.
Proposed Work on the Canoe grid:
The EM - Resistivity approach will also be applied on the Canoe grid where the DC resistivity data should help prioritize areas and/or conductors to be investigated by drilling. A total conductor length of approximately 20.5 km was characterized in the Canoe grid area by prior EM surveys. Orano is planning to carry out 12.6 km of DC resistivity.
Proposed Work on the B conductive area:
The DC resistivity method will be evaluated over the B conductive area located east of Preston Lake where prior VTEM coverage defined the B conductive area to vary in width from 0.8 km to 2.0 km and extend in a NE-SW direction for more than 12 km. The survey coverage will consist of 12.6 km and will potentially generate new drill targets.
About the Preston Uranium Project Agreement:
Dixie Gold and Skyharbour Resources Ltd. ("Skyharbour") previously entered into an Option Agreement (the "Agreement") with Orano Canada whereby Orano Canada has an option to acquire up to a 70% working interest in the Preston Uranium Project (see news release dated March 9, 2017). Under the Agreement, Orano Canada would contribute cash and exploration program considerations totaling up to CAD$8,000,000 over six years in exchange for up to 70% of the project.
Overview of Preston Uranium Project:
The significant potential of the Western Athabasca Basin has been highlighted by recent discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a joint-venture consisting of Cameco Corporation, Orano Canada Inc. and Purepoint Uranium Group Inc. (Spitfire). Exploration to-date at the Preston Uranium Project has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochemistry, lake sediment, and geological mapping and sampling surveys, as well as several exploratory drill programs. A number of high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through this methodical, multi-phased exploration approach.
Qualified Person:
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed and approved by Richard Kusmirski, P.Geo., M.Sc., Skyharbour's Head Technical Advisor and a Qualified Person.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV:DG) is a publicly-traded exploration company involved in a diverse portfolio of exploration projects in Canada. For more information, please visit www.dixiegold.ca.
Signed,
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently expected or forecast in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Dixie Gold Inc.
Ryan Kalt, Chief Executive Officer, Dixie Gold Inc., P. 604-652-1710, E. [email protected], W. www.dixiegold.ca
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