New Dimension Resources Ltd. - QwikReport

NEW DIMENSION RESOURCES LTD. : http://www.newdimensionresources.com/ : QwikReport

Reese River Project

Location

The Reese River Project is situated in the Austin mining district of central Nevada. The project is well located approximately five kilometers north of the town of Austin with good road access.

Overview

New Dimension acquired, through lease/option agreements and staking, a large land position within the northern portion of the Reese River Mining District (also known as the Austin District) in central Nevada. The land package includes the New York Canyon and Amador Canyon areas that have seen considerable historical silver production during the 1880's.

New York Canyon was the site of major underground mining of high-grade silver that is estimated at upwards of five million ounces. Silver grades from the mines here varied considerably with historic production records indicating some ore chutes containing over 1,000 ounces of silver per ton. Average mining grades, however, were generally between 100 and 200 ounces per ton silver. In the 1980's large waste dumps from New York Canyon were processed at a local mill with the grades reported to average eight ounces silver per ton. The Company has not verified this information.

The Company can acquire its interest in the 23 optioned New York Canyon patented claims by a lease agreement with annual payments and a 3% Net Smelter Royalty. The NSR can be reduced to 1% by paying the lessor US $3 million. The Company can also earn a 100% interest in a block of 24 unpatented claims that cover much of the Amador Canyon Zone of mineralization. This agreement allows the Company to earn its interest by making the annual payments and issuing shares of the Company over five years. The vendor retains a 3% NSR, with the Company having the right to purchase two of the three percentage points for US $2 million. In addition to the above two agreements, the Company has staked 52 claims to tie the New York Canyon and Amador Canyon claim blocks together and cover additional areas of exploration potential. All of the Company's ground is contiguous.

In 2009, New Dimension signed an agreement with International Minerals Corp., an emerging gold and silver producer, to form a joint venture on the Reese River Project. The Agreement allows International Minerals, over a four year period, to earn an initial 60% interest in the Property by undertaking US$1.0 million in exploration expenditures and maintaining the underlying property obligations. International Minerals will have the option to acquire an additional 10% interest (for a total interest of 70%) by funding and completing a Feasibility Study within eight years. New Dimension has collected US$10,000 and will collect a further US$100,000 in cash or equivalent value in International Mineral shares (at the election of International Minerals) upon International Minerals earning a 60% interest in the Property. Once International Minerals has earned its interest (either 60% or 70%), either party can be diluted to a 1% net smelter return ("NSR") royalty for non-participation in approved expenditures on the Property.

Work Performed

New Dimension's initial sampling at Reese River included thirty-nine chip samples that averaged 60 g/t silver and were taken over one metre widths in New York Canyon, with 10 grab samples from remaining mine dumps averaging 160 g/t silver (average does not include a high value of 1,829 g/t silver). The sampling was conducted to verify the potential for a large disseminated silver deposit. At the time there had been no drilling or known modern exploration conducted in the New York Canyon area. At Amador Canyon, limited drilling was previously completed to test manto style mineralization hosted in segments. Drill results from that program reportedly included a 12.2 metre intercept averaging 286 g/t silver. Multiple targets of this type remain to be tested. In addition to the manto style targets, mapping and sampling at Amador Canyon has also focused on a large easterly trending structural zone that saw significant historic mining activity. Also of potential importance is that sampling by the Company in the Amador Canyon area also identified gold values up to 10 g/t. This gold area is located several hundred metres east of the main silver zone at Amador Canyon and could potentially represent a stand-alone gold target on the property.

2009 Drill Program
In September of 2009 a 17 drill-hole Phase I Reverse Circulation drilling program totaling 1,900 metres was completed. The majority of drilling was conducted at New York Canyon where 11 drill-holes totaling 1,383 metres were drilled to test three main target areas. These areas are referred to as the North, Central and South Zones.

At the South Zone, two drill holes (RR#5 and 6) were completed with RR#6 the only one that noted significant mineralization and the only hole that successfully reached the faulted contact between the underlying Austin Pluton and the overlying sediments. At the contact, the hole reported 84.7 g/t silver over 4.6 meters with this occurring in a 13.7 metre intercept grading 36.8 g/t silver. This mineralization dips approximately 40 degrees to the north and remains open down dip and on strike to the east and west. This drilling indicated that the contact zone represented a viable target that required additional drilling.

South Zone Table

Target Name	Drill Hole Number	Hole Depth (Metres	Noteworthy Results From - To (Metres)	Intercept (Metres)	Average Grade Ag g/t
South Zone	RR-6	152.4	42.7 to 85.4	42.7	4.33
			129.6 to 143.3	13.7	36.8
			inc.	4.6	84.7
			inc.	1.5	182
	RR-5	173.7	7.6 to 13.7	6.1	5.8
			48.8 to 62.5	13.7	5.4
			101 to 113	12	5.8

In the Central Zone seven drill-holes were positioned to test the potential in the area where the majority of past production from New York Canyon has been reported. Five holes (RR#1,8,9,10 and 11) encountered thick intervals with anomalous silver values and outlined a mineralized zone measuring approximately 250 long by 100 metres wide and averaging approximately 65 metres thick. This zone, which averages approximately 3.1 g/t silver, is elongated northwest, appears to be fairly flat lying and is open in all directions. Of the two remaining holes, RR#3 was lost due to drilling problems and RR#7 hit old mine workings and no samples were recovered through the projected zone of mineralization.

Results from the Central Zone support the existence of a large mineralizing system and it remained a high priority to drill through this anomalous zone to test the underlying intrusive contact which was an important target concept at New York Canyon.

Central Zone Table

Target Name	Drill Hole Number	Hole Depth (Metres	Noteworthy Results From - To (Metres)	Intercept (Metres)	Average Grade Ag g/t
Central Zone	RR-1	102.1	4.6 to 44.2	39.6	2.65
			44.2 to 50.3	6.1	15.12
			61.0 to 99.0	38.7	2.28
	RR-7	68.6	3.8 to 51.7	13.7	1.61
			52 to 59	7	mine workings
			59 to 69	10	2.51
	RR-8	132.6	52 to 129	77	3.64
	RR-9	121.9	32 to 122	90	2.54
	RR-10	93.0	4.3 to 93	88.4	3.25
	RR-11	100.6	50 to 69	19	3.89
			93 to 94.5	1.5	47.8

On the North Zone two drill holes, RR#2 and RR#4 were positioned to test a known vein structure but were lost before reaching target depth due to broken ground and high water flows.

The Amador Canyon area of the property is located approximately two kilometres to the northwest of New York Canyon. Six drill holes totaling 717 metres were completed here to test three separate target areas. Only one drill hole, RR#14, positioned in the East Zone intersected noteworthy silver mineralization. This included a wide zone of anomalous silver with a high value over 1.5 metres of 125 g/t. This hole is situated approximately 300 metres along Amador Canyon to the east from the main area of historic silver production. The area contains virtually no outcrop and drilling here identified a previously unknown zone of potentially important silver hosted within a wide favorable alteration zone. The zone remains open in all directions. A second hole in the area (RR#15) was lost at 32 metres and did not reach the mineralized horizon. The remaining four drill holes, RR#12, 13, 16 and 17 were positioned to test a steeply dipping manto style shear zone as well as the major easterly trending Amador Fault that has reported significant historical mining activity. All of these drill-holes encountered anomalous silver values with a high value of 52.5 g/t silver over 1.5 metres in RR#12.

Amador Canyon Table

Target Name	Drill Hole Number	Hole Depth (Metres	Noteworthy Results From - To (Metres)	Intercept (Metres)	Average Grade Ag g/t
East Zone	RR-14	111.3	15.2 to 24.3	9	10.8
			33.5 to 91.5	59.5	4.29
			91.5 to 93	1.5	125
			93 to 111.3	18.3	5.02
	RR-15	32	hole lost at 32 m		no noteworthy values
Amador Fault	RR-12	71.6	16.8 to 22.9	6.1	12.16
			inc.	1.5	52.5
	RR-13	82.3	7.6 to 59.5	52	3.05
	RR-16	97.6	33.5 to 36.5	3	14.6
Manto Target	RR-17	111.3	7.6 to 12.2	4.6	8.8
			22.9 to 50.3	27.4	3.69
			88.4 to 89.9	1.5	26.0

Core Drilling Program at New York Canyon
At New York Canyon, due to hole-depth limitations created by high water flows, RVC drilling did not reach the depth required to further test the underlying contact between the Austin Pluton and the overlying upper-plate sediments. This contact zone represented a large target area that was reached by only one RVC drill-hole (RR#6) that did intersect strong mineralization. As this target was deemed to be worthy of further investigation the Joint Venture elected to complete two core holes to better explore this contact. This program was carried out between November 14th and December 1st and totaled 533 metres in two core holes. Both holes were positioned in the Central Zone and confirmed that the intrusive does underlie the area and did identify evidence of a strong hydrothermal system on the contact. Although this system looks impressive it unfortunately hosts no noteworthy silver mineralization and likely pre-dates the district's silver mineralization.

It was concluded from the drilling that the anomalous silver identified in the New York Canyon drilling is hosted in sediments and mainly associated with a fracture network of quartz-pyrite veins with silver grades increasing with higher vein intensity and greater vein widths. Past production form New York Canyon came from ore-chutes developed in larger vein sets associated with low angle bedding plane shears. Drilling has shown that these host environments are of limited extent and appear to be largely mined-out. Subsequent to the RVC drilling, the conceptual target of greatest potential was the actual contact between the sediments and the underlying Austin Pluton. This thinking was based on possibilities for significant faulting along the contact that could have developed favorable structural environments for mineral deposition. Unfortunately, the two core holes that reached the contact zone were not mineralized and largely eliminates this as a viable target.

Geology

The Company's main targets of interest at Reese River are veins and shear zones that are formed at or near the contact between intrusive rocks and overlying sediments. Many of these shears have shallow to moderate dips and appear to follow bedding planes in the sediments and form "stacked" tabular zones of mineralization. Other veins and shears on the property cross cut bedding with generally steeper dips and can be projected into the underlying intrusive rocks. These are the likely feeder structures to the mineral system. This contact area is a structurally disrupted zone that facilitated the introduction and dispursment of mineralizing solutions and this favourable environment has seen very limited exploration in modern times.

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This page was created on Thu Sep 9, 2010 at 6:38:40 PM Pacific Time.