VANCOUVER, Dec. 5, 2019 /CNW/ - Dixie Gold Inc.
(TSX VENTURE: DG) ("Dixie Gold" or the "Corporation")
is pleased to announce that its project option partner Azincourt
Energy Corp. ("Azincourt") has provided an update on plans for the
2020 winter diamond drilling program at the 25,000+ hectare East
Preston Project, located 50km southeast of Patterson Lake in the
Western Athabasca Basin of
northern Saskatchewan, Canada.
"We are pleased to detail this upcoming Q1 drill program in
Saskatchewan at our Preston East
Project. Combined with our recent news regarding a first quarter
exploration program by Orano Canada, this planned $1.2m drill program by Azincourt Energy offers
our shareholders the opportunity to benefit from exposure to
multiple exploration programs as we move into the first
quarter" stated Ryan Kalt, CEO
of Dixie Gold.
Preston Uranium Project Map:
https://bit.ly/2KfadXm
Drill target prioritization has now been completed based on the
compilation of results from the 2019 winter drill program, the 2018
and 2019 ground-based EM and gravity surveys and property-wide
helicopter-borne Versatile Time-Domain Electromagnetic (VTEM™ Max)
and magnetic surveys.
The estimated $1.2m drill program
will focus on prospective targets in the Five Island Lakes area
with 2000-2500m (up to 15 holes) of
diamond drilling at 8-to-10 pad locations. The majority of proposed
holes will test multiple subparallel EM conductors (A-zone and
B-zone conductor corridors), in an area of marked structural
disruption. Portions of the A-zone were drilled during the 2019
winter campaign verifying that the conductor hosts significant
graphite in strongly deformed (sheared) host rocks that offer both
fluid pathways and a reducing host rock conducive to uranium
deposition.
Initial drilling is also proposed for the Swoosh zone, a 7+ km
long east-west structural lineament with strongly anomalous,
spatially consistent geochemical anomalies (lake sediments, radon,
soil) and coincident magnetic and gravity geophysical anomalies.
Two holes are proposed for this area near the upstream terminus of
the geochemical anomalies. This zone is located along strike -
approximately 5km southwest of the A-zone.
Figure 1: 2020 Drill Targets – East Preston Uranium
Project:
https://bit.ly/2qkHfhW
Option Agreement:
Dixie Gold (previously Clean
Commodities Corp.) and Skyharbour Resources Ltd. ("Skyharbour")
entered into an option agreement (the "Agreement") with Azincourt
whereby Azincourt has an earn-in option to acquire a 70% working
interest in a portion of the Preston Uranium Project known as the
East Preston Project. Under the Agreement, Azincourt has issued
common shares and will contribute cash and exploration expenditure
consideration totaling up to CAD $3,500,000 in exchange for up to 70% of the
applicable property area over three years. Of the $3,500,000 in project consideration, $1,000,000 will be in cash payments to
Dixie Gold and Skyharbour, as well
as $2,500,000 in exploration
expenditures over the three-year period.
About East Preston:
Extensive regional exploration work at East Preston was completed in 2013-14,
including airborne electromagnetic (VTEM), magnetic and radiometric
surveys. Three prospective conductive, low magnetic signature
corridors have been discovered on the property. The three distinct
corridors have a total strike length of over 25 km, each with
multiple EM conductor trends identified. Ground prospecting and
sampling work completed to date has identified outcrop, soil,
biogeochemical and radon anomalies, which are key pathfinder
elements for unconformity uranium deposit discovery.
Azincourt completed a winter geophysical exploration program in
January-February 2018 that generated
a significant amount of new drill targets within the previously
untested corridors while refining additional targets near previous
drilling along the Swoosh corridor. Ground-truthing work confirmed
the airborne conductive trends and more accurately located the
conductor axes for future drill testing. The gravity survey
identified areas along the conductors with a gravity low signature,
which is often associated with alteration, fault/structural
disruption and potentially, uranium mineralization. The
combination/stacking of positive features has assisted in
prioritizing targets.
The Main Grid shows multiple long linear conductors with
flexural changes in orientation and offset breaks in the vicinity
of interpreted fault lineaments – classic targets for
basement-hosted unconformity uranium deposits. These are not just
simple basement conductors; they are clearly upgraded/enhanced
prospectivity targets because of the structural complexity.
The targets are basement-hosted unconformity related uranium
deposits similar to NexGen's Arrow deposit and Cameco's Eagle Point
mine. East Preston is near the
southern edge of the western Athabasca Basin, where targets are in a near
surface environment without Athabasca sandstone cover – therefore they are
relatively shallow targets but can have great depth extent when
discovered. The project ground is located along a parallel
conductive trend between the PLS-Arrow trend and Cameco's
Centennial deposit (Virgin River-Dufferin Lake trend).
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
including gold, lithium and uranium assets in Canada. For more information, please visit
www.dixiegold.ca.
Signed,
Ryan Kalt, Chief Executive
Officer
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.