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.