Sep 07, 2011
New Dimension Options Copper-Gold Porphyry Project in Yukon Diamond Drill Program Underway
New Dimension Resources Ltd. (TSXV: NDR) (the "Company" or "New Dimension") is pleased to report that it has executed a binding option agreement (the "Agreement") with Strategic Metals Ltd. ("Strategic Metals") to earn up to a 100% interest in Strategic Metals' Mars copper-gold property ("the Property") located in south central Yukon.
A diamond drill has been mobilized to the site and an approximate 1,000 metre drill program is underway.
"The Mars Project is a drill ready, classic gold rich alkalic porphyry copper target," said Fred Hewett, President & CEO of New Dimension. "New Dimension is very pleased to have the opportunity to test such a prospective porphyry target strategically located in Yukon. We look forward to conducting the first significant drill program on the Property."
Please click the following link to view a map of the Property:
The 19.4 square kilometre Mars Property is located approximately 65 kilometres northeast of Whitehorse in south central Yukon. The Property features a gold-copper porphyry target defined by a 1 x 3 kilometre northwest oriented zone of potassic alteration with associated chalcopyrite and magnetite bearing veins and stockworks. This large target is also defined by an airborne magnetic anomaly and copper, gold, and molybdenum soil anomalies.
Mineralization on the Property is believed to be related to a silica-saturated alkalic intrusion similar to the Mount Milligan, Mount Polly and Copper Mountain deposits in British Columbia. These deposits typically have elevated gold and silver values and decreased molybdenum when compared to more classic porphyry copper deposits.
Exploration has been carried out intermittently in this area since copper mineralization was first discovered in 1971. Work to date has been restricted by thick overburden coverage and has included geological mapping, hand trenching, soil geochemical surveys, ground and airborne geophysics, and seven (7) short diamond drill holes.
The geochemical soil surveys reveal a significant northwest trend with the majority of the samples containing greater than 100 ppm copper, to a maximum of 2594 ppm copper. Gold values show a high of 485 ppb and locally overlap the areas of anomalous copper values. The drill holes tested only a small portion of the property with the main geophysical and geochemical anomalies still untested by drilling. Although the previous diamond drilling was outside the main area of interest, one hole did identify a significant gold interval (4.37 metres of 6.43 g/t) that coincides with a moderately high magnetic anomaly.
In 2008, Strategic Metals consolidated the property ownership and in 2010 conducted a helicopter-borne VTEM/magnetic geophysical survey. This survey identified a number of magnetic highs that are coincident with anomalous soil geochemical values. These strong magnetic responses overlay areas of high resistivity that may coincide with potassic alteration. This geophysically attractive target continues into areas of high gold-in-soil values that have not been drilled. The Company will be testing these features with its initial drill holes.
New Dimension can earn an initial 50% property interest by spending $3.5 million in exploration expenditures and making payments totaling $600,000 to Strategic Metals over a four year period. Of the $600,000, up to $250,000 in value can be issued in the Company's stock at the election of the Company.
The Company can also elect to earn an additional 15% (aggregate 65% property interest), by spending $15 million (total exploration to date), by issuing to Strategic Metals 19.9% of the outstanding shares of NDR, and by completing a pre-feasibility study. The Company can then elect to earn a further 35% (aggregate 100% interest) by making a decision to commence the construction of a mine within 12 years from the signing of the agreement and by maintaining Strategic Metals' equity interest in the Company. Upon NDR earning 100%, Strategic Metals and the original vendors would retain a 2.5% net smelter return (NSR) production royalty.
In a related matter, the Company and Strategic Metals have mutually agreed that no further exploration will be carried out on the Gild property, and all Company expenditures on the Gild property to date will be attributed to the Mars property.
About New Dimension Resources Ltd.:
New Dimension has an option to earn up to a 100% interest in 13 properties located in the Yukon from Strategic Metals. The Properties were originally staked by Strategic Metals following an extensive review of a geological data base complied by Archer, Cathro & Associates, an independent group of consulting geological engineers and geoscientists with extensive exploration experience in the Yukon. New Dimension also holds several other attractive exploration properties in Canada and Peru.
In northern Peru, the Company's Cenepa gold project covers one of the most attractive geological terrains within the highly prospective Cordillera del Condor mineral belt; adjacent to Kinross Gold Corp.'s Condor Project and Fruta Del Norte gold deposit in Ecuador.
The information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Fred Hewett the Company's President & CEO, a director and a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO
For further information please contact Fred Hewett or Chris Curran
at (604)687-7545 or (888)338-2200
** INTERNET ADDRESS: www.newdimensionresources.com ** Email: firstname.lastname@example.org
Neither 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 news release.
This news release may contain forward looking statements which are not historical facts, such as statements of belief of similarity of geological characteristics or features, statements of unverified drilling and sampling results and expectations of receipt of permits and plans for future work. Forward looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, unexpected geological factors, exploration results, results of verification work and unanticipated regulatory obstacles. See New Dimension's filings for a more detailed discussion of factors that may impact expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
You can view the Next News Releases item: Tue Oct 25, 2011, New Dimension Updates Drilling at Mars Copper-Gold Porphyry Project, Yukon
You can view the Previous News Releases item: Tue Aug 30, 2011, New Dimension Samples 8.32 g/t Gold at Lansing Project, Yukon Substantially Increases Yukon Land Position at the Lance and Liam Properties
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