Huxter Lane Project
Golden Dory Resources Corporation (“Golden Dory”) is a Newfoundland and Labrador based junior mineral exploration company with gold, base metal and uranium properties in Newfoundland and Labrador, Canada; lithium/rare metal properties in Ontario, Canada; and an exciting gold property in Nevada, USA. Its focus is to acquire properties in emerging districts as well as underexplored regions through staking and joint venture and advance them cost effectively in order to maximize shareholder value. The Company’s move into the Pequop Gold District of northeastern Nevada was seen as an opportunity to acquire a significant and early position in one of Nevada’s most exciting new gold trends in many years.
Moving forward, Golden Dory’s immediate focus will be to build gold reserves at its keystone project, the Huxter Lane – Brady gold project in central Newfoundland, where it is working towards its first compliant resource estimate. Additional drilling planned for early 2010 should add to the initial resource estimate which will be updated with each round of work.
In addition, the Company will be advancing the Pequop South gold property in Nevada with its partner AuEx Ventures Inc. The Pequop district of northeast Nevada is host to two of the most exciting new discoveries in recent years, specifically the Long Canyon and West Pequop properties. These new projects are being advanced by Fronteer Development and Agnico Eagle respectively, all in partnership with AuEx Ventures Inc.
In late 2009, Golden Dory acquired two exciting lithium (+/- rare metals) properties in northwest Ontario that it plans to move forward at the earliest opportunity, and where possible with joint venture partners funding the work. The future for lithium and other rare metals looks very promising and both properties have excellent potential to host significant lithium and rare metal mineralization.
Golden Dory’s primary focus is the Huxter Lane-Brady gold project located in the mining friendly jurisdiction of Newfoundland & Labrador in eastern Canada. The project is targeting near surface, bulk tonnage gold mineralization similar to the Fort Knox gold deposit in Alaska which currently hosts reserves of 3.8 million ounces of gold at an average grade of 0.47 grams per tonne gold (Kinross Gold Website). The company has commissioned a NI 43-101 compliant resource estimate at Huxter Lane which it hopes to have out before the end of the first quarter 2010.
Golden Dory is earning a 70% interest from AuEx Ventures Inc., in a promising early stage gold project (Pequop South) in the Pequop Mountains of northeast Nevada. The project is along strike from the rapidly developing Long Canyon gold project owned by Fronteer Development and AuEx Ventures Inc. The Pequop South property also happens to be contiguous with Agnico Eagle’s West Pequop property which is also under aggressive exploration.
Golden Dory also has highly prospective lithium and rare metals properties in northwest Ontario (Jackpot and Root Lake), as well as a bulk tonnage uranium project (Burin), in southern Newfoundland.
Target: Intrusion-hosted bulk tonnage gold
Location: Newfoundland and Labrador, Canada
Ownership: Golden Dory Resources Corp. is earning a 70% interest from Paragon Minerals Corporation
The Huxter Lane property is located in southern, central Newfoundland approximately 50 km south of the community of Grand Falls-Windsor. The property comprises two map-staked mineral licenses consisting of 86 claims for a total combined area of 2,150 hectares. In February, 2009 Golden Dory Resources entered in to an option agreement with Paragon Minerals Corporation whereby Golden Dory could earn a 60% interest in the 86 claim (2150 hectare) Huxter Lane property by issuing a total of $50,000 cash, 350,000 shares of Golden Dory and by making exploration expenditures of $2 million over four years. Golden Dory can increase its interest to 70% by issuing a further 150,000 shares and funding a bankable feasibility study. It is Golden Dory’s objective to complete infill drilling with the view to developing a resources estimate for the Mosquito Hill Zone. The Huxter Lane Property is contiguous with Golden Dory’s 100% owned Brady (Au) Property located to the northwest.
The Huxter Lane property covers the contact between ultramafic-mafic rocks of the Coy Pond Complex and felsic volcanic and marine siliciclastic rocks of the Baie d’Espoir Group. This contact is a major structural and stratigraphic break with gold mineralization, discovered in 2002, documented over a widespread area. At the Mosquito Hill prospect this gold mineralization is hosted within extensive quartz-feldspar porphyry intrusions and displays similarities to the large Fort Knox deposit in Alaska currently being mined by Kinross Gold. Fort Knox hosts reserves and resources totaling 252 million tones at an average grade of 0.47 grams per tonne gold, or 3.8 million ounces gold. These deposit types are typified by their bulk-tonnage (>100 million tonne), open pit potential.
From 2002 to 2008, Paragon Minerals Corporation and its predecessor Rubicon Minerals completed detailed exploration work on the Mosquito Hill Zone that included 32 diamond drill holes which outlined extensive low grade gold mineralization. The gold-bearing porphyry intrusion has been traced over a strike extent of 900 metres and to a vertical depth of 225 metres and remains open both along strike and to depth. Highlights of this drilling include 2.21 grams per tonne gold over 35 metres (HX06-16), 1.02 grams per tonne gold over 28.6 metres (HX06-01), 0.67 grams per tonne gold over 37.75 metres (HX06-02), 0.66 grams per tonne gold over 56 metres (HX06-13) and 0.65 grams per tonne over 47.6 metres (HX06-06).
2009 Exploration Program
In 2009, Golden Dory completed a 15 hole, 2024 metre drill program which focused on a specific portion of the Mosquito Hill deposit where previous drill results have included 2.21 grams per tonne gold over 35.0 metres (HX06-16) and 1.68 grams per tonne gold over 20.2 metres (HX07-24). Drillholes HX09-32 to HX09-46 were completed in a grid pattern at 50-metre centers covering an area of approximately 100 by 300 metres. The gold-bearing porphyry was intersected in all of the completed drillholes over thicknesses of up to 98 metres (core length). A total of 1490 samples were submitted for analysis; 1386 samples were of drill core, 30 were blanks and 74 were standards with a known gold content to ensure quality control. Significant assay results include 17.0 metres of 0.93 grams per tonne gold, 13.5 metres of 1.00 grams per tonne gold, and 8.8 metres of 0.70 grams per tonne gold. This drilling confirms the widespread gold mineralization as previously reported by Paragon Minerals Corporation.
In late 2009, Golden Dory commissioned a NI 43-101 technical report on the Mosquito Hill deposit focusing on the estimate of contained gold in the deposit. On March 4, 2010, Golden Dory released the first resource estimate on the Mosquito Hill deposit which concluded the deposit contains an indicated resource of 4.47 million tonnes averaging 0.526 grams per tonne gold for 75,600 ounces of gold, and an inferred resource of 32.7 million tones averaging 0.461 grams per tonne gold for 488,800 ounces of gold at a cutoff of 0.30 grams per tonne gold. To date no economic assessment or scoping study has been carried out at Mosquito Hill, however a range of cutoff grades are provided.
The company is very pleased with these early stage results. The deposit has been tested by only 46 drill holes but has a strike length of 900 metres and a width of 500 metres and has thicknesses locally in excess of 100 metres and is open for expansion down dip and along strike. The deposit is exposed at surface and dips very gently southwest, essentially flat lying, ideally suited for possible open pit mining methods should the deposit prove to be economic. Adjacent to the Huxter Lane Option is the 100% owned Brady property which hosts mineralization similar to the Mosquito Hill deposit. Recent drilling by Golden Dory in late 2009 returned drill intercepts of 101 metres averaging 0.54 grams per tonne gold and 20.45 metres averaging 1.27 grams per tonne gold which strongly supports historical drilling by previous operators of 41.1 metres averaging 1.1 grams per tonne gold.
In summary, it is possible that the Huxter Lane – Brady property currently under Golden Dory control has potential for multiple large open pit mineable gold deposits. In 2010, Golden Dory will move forward with drilling to further expand the mineralization at Mosquito Hill and the Brady property, as well as preliminary metallurgical work at Mosquito Hill and environmental baseline water quality studies.
Corporate Profile on Stockhouse
Kevin D. Keats
Mr. Keats is a successful entrepreneur with 16 years' experience in Mineral Exploration. Mr. Keats hails from a family of 5 generations of prospecting — from his grandfathers, dad, brother, cousins, uncles and nephews this family is world renowned. Mr. Keats’ first 6 years were spent prospecting for Noranda Exploration in Newfoundland and Northern Ontario. The next 2 years were spent prospecting in Labrador during the Voisey’s Bay rush, and the following year prospecting for Inco in Indonesia. In 1998, Mr. Keats along with his dad Allan formed a Mineral Exploration services company in Benton, Newfoundland called A.S.K. Prospecting & Guiding Inc. A.S.K. Prospecting & Guiding Inc. has a large client base including major companies such as Xstrata as well as numerous junior mining companies. Since forming A.S.K., Mr. Keats has prospected in Peru and several locations in Mexico. He has discovered/co-discovered several major mineral occurrences in Canada, Indonesia and Mexico that have been the subject of extensive exploration programs. In the last 10 years A.S.K. has optioned out more than 30 properties to various companies in Newfoundland & Labrador. Mr. Keats is currently president of A.S.K. Prospecting & Guiding Inc. and is a director of Spruce Ridge Resources (TSX-V: SHL). Kevin is also actively involved in his Community of Benton. He is a town counselor, and the Fire Chief of the Benton Volunteer Fire Department.