VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 17, 2016) – New Dimension Resources Ltd. (TSX VENTURE:NDR) (the “Company” or “New Dimension”) is pleased to announce the commencement of an airborne geophysical program (the “Program”) on the Company’s newly acquired 83.5 square kilometre Savant Lake gold property (the “Property”).
“We are excited to begin this airborne geophysical survey over our Savant Lake gold project,” said Fred Hewett, President and CEO of New Dimension. “We anticipate the results of this program will identify new drill targets and improve our geologic understanding of the property.”
The Program’s flight pattern is designed to identify possible gold bearing sulfide horizons within favourable structural environments developed in iron formation stratigraphy. The total proposed survey of 925 line-kilometers covers an area of approximately 90 square kilometers and is expected to take between one and two weeks to complete. Data processing and modelling will follow with fully interpreted results available in June. The Program will include the use of a VTEM™ Plus (Versatile Time Domain Electromagnetic) system, which is considered the most innovative and successful airborne electromagnetic system currently being utilized in the industry. The VTEM™ Plus system is expected to detect potentially gold bearing sulfide conductors hosted within the property extensive iron formation occurrences.
About Savant Lake Gold Project
Located approximately 240 kilometres northwest of Thunder Bay, Ontario, the Savant Lake Project covers a classic iron formation hosted system of gold occurrences within the Savant Lake Greenstone Belt. The Property, which has not been significantly explored since the early 1980’s, hosts multiple gold showings that have yielded high grade values up to 138.9 g/t in outcrop. New Dimension was attracted to the Savant Lake Property for its gold in iron formation characteristics that seem analogous to Goldcorp’s neighbouring Musselwhite gold mine and Agnico Eagle’s newly discovered Amaruq deposit in Nunavut. The Company can earn a 100% interest in the Savant Lake Property by paying the vendors C$100,000 and issuing 600,000 shares of New Dimension over a four year period. The Property is subject to a 2% NSR, of which one percent (1%) can be purchased for C$1,000,000.
About New Dimension Resources Ltd.
New Dimension is engaged in the acquisition, exploration and development of quality mineral resource properties throughout the Americas with a focus on potential bulk tonnage gold and silver deposits. The Company is currently focused on mineral projects in Canada with Savant Lake its main priority. New Dimension also holds a 30% interest in a joint venture with Yamana Gold Inc. on the Domain gold property in northern Manitoba as well as an option to earn a 70% interest in the Midas gold property, located in north central Ontario.
SAVANT LAKE PROJECT
- Large land position covering classic iron formation hosted system of gold occurrences;
- Road accessible property and located near railway line;
- Surface prospecting has yielded high grade gold values up to 138.87 g/t;
- No significant exploration completed since early 1980’s;
- Airborne VTEM™ survey planned to delineate and prioritize targets for future drilling;
- Possible analogs to iron formation gold occurrences at Savant Lake include Goldcorp’s Mussewhite Mine, Agnico Eagle’s Meadowbank Mine and its recently discovered Amaruq deposit.
Location:
The Savant Lake gold project is situated approximately 240 kilometres northwest of Thunder Bay, Ontario in the Savant Lake Greenstone Belt. The Property is accessible by an all-weather road (provincial highways 17 and 599) and is within 25 kilometres of the Canadian National Railway’s main line.
Overview:
The Savant Lake gold project covers a classic iron formation hosted system of gold occurrences within a very prospective mineral district in Ontario. The Property consists of 40 contiguous staked claims (522 units) covering 8,352 hectares. New Dimension can earn a 100% interest in the Savant Lake Property by paying the vendors C$100,000 and issuing 600,000 shares of New Dimension over a four year period. These payments can be accelerated at the option of the Company, with no cash payments due in the first year. The Property is subject to a 2% NSR, of which one percent (1%) can be purchased for C$1,000,000.
Work Performed:
The Property has not been significantly explored since the early 1980’s, hosts seven known gold occurrences that have yielded high grade gold values up to 138.87 g/t from recent surface prospecting. Of the seven historical gold showings on the property, all but one are spatially related to oxide facies iron formation. Gold mineralization is similar among all of the showings, being hosted in mixed iron formation and adjacent pyritic metasediments with varying amounts of quartz veining and carbonate alteration.
During the 1980’s two of the gold showings were tested by shallow drilling which returned values of 0.3 to 0.5 oz/t gold (8.5 g/t to 14.17 g/t) over narrow widths of 1.0 to 1.4 feet (0.3 metres to 0.43 metres). Historical stripped areas over the western drilled area exposed mixed oxide facies iron formation and clastic metasediments, which are host to pyrite and arsenopyrite mineralization as well as quartz veining and ankerite alteration.
In 2014, a total of 57 samples were taken by the Property vendors over the historical showings with values ranging from 138.87 g/t gold to 0.005 g/t gold. In total, 35 samples reported grades exceeding 1.0 g/t gold including 11 samples exceeding 20 g/t gold. The known showings are locally covered by shallow overburden, but more than 90% of the interpreted iron formation horizons do not outcrop.
Available magnetic data indicates that strong folding of the iron formation has occurred resulting in the development of multiple steeply plunging fold hinges. Examples of fold hinges hosting mineralization include the past producing Lupin and Homestake mines. The setting of the Savant Lake gold occurrences also shows many similarities to a number of other significant iron formation hosted gold deposits including Goldcorp’s Mussewhite Mine, Agnico Eagle’s Meadowbank Mine and Agnico’s recently discovered Amaruq deposit.
Geology
The Property is situated within the Archean age Savant Lake Greenstone Belt and is underlain primarily by greywacke interbedded with cherty magnetite iron formation and minor mafic volcanics. These rocks have been metamorphosed to upper greenchist (+/- amphibolite) facies and complexly folded such that the iron formation horizons appear to have been repeated. There is a geophysically interpreted cumulative strike length of 60 kilometres of prospective iron formation. Physiography is typical of the Canadian Shield with almost flat, tree-covered terrain interspersed with muskeg and lakes.
Upcoming Work Program:
The Company’s initial exploration program will include an airborne geophysical survey designed to rapidly delineate targets for future drilling. A priority objective of the Company’s program will be to identify gold bearing sulfide bodies contained within favourable structural environments developed in iron formation stratigraphy. These sulfide rich targets lend themselves to a modern VTEM™ survey – which has never been completed – and could help delineate and prioritize targets for drilling within this largely underexplored greenstone belt.
Read the press release “New Dimension Resources Commences Airborne Geophysical Program at Savant Lake Gold Project, Northwestern Ontario” here.