January 26, 2015 – Vancouver, BC, Canada. – Dunnedin Ventures Inc. (the “Company” or “Dunnedin”) (TSX-V: DVI) is pleased to report the maiden inferred resource from the Kahuna Diamond Project (the “Project”), located in Nunavut, Canada. The estimate was prepared by APEX Geoscience Ltd. on the Kahuna and Notch kimberlites based on data from the 2006 – 2008 bulk sampling and drill programs completed by the past operator. A NI 43-101 technical report disclosing the resource will be filed on SEDAR within 45 days.
- A combined Inferred Mineral Resource of 4,018,000 carats of macrodiamonds at a 0.85 mm (+1 DTC sieve size) lower diamond cut-off, with an average grade of 1.01 carats per tonne (cpt), or 101 carats per hundred tonnes (cpht) derived from 3,987,000 tonnes of kimberlite resource.
- The kimberlites in the resource are exposed at surface and remain open to extension along strike and at depth. The average drill intercept at the Kahuna kimberlite was only 80 vertical metres, however kimberlite has been intersected at vertical depths of greater than 120 m and continuity at depth is supported by the available data.
- Indicator mineral trains and geophysics suggest the Kahuna and Notch have the potential to extend along strike into areas of thin sediment cover. Kimberlite has been intercepted in drilling along these potential extensions; however drill spacing was insufficient for inclusion in the resource. These areas will be a focus of future drilling.
- Only 2 of 8 confirmed significantly diamondiferous kimberlites (Kahuna and Notch) have sufficient drilling, bulk sampling and density definition work to be included in the inferred mineral resource at this time. Other drilled, mapped and sampled diamondiferous kimberlites include the PST, Killiq, and 4 additional kimberlite dikes located between the Notch and PST kimberlites (KD-13, 14, 16 and 18). Additional evaluation of these kimberlites will be a priority for Dunnedin in 2015.
- “The Kahuna project’s readily expandable high grade diamond resource, strong infrastructure advantages due to its location close to Rankin Inlet and tidewater in Hudson’s Bay, and high potential for new discoveries make this stand out as an excellent Canadian diamond development opportunity,” said Chris Taylor, Dunnedin’s CEO.
Details of the Resource
Drilling, surface bulk sampling, and micro- and macrodiamond data indicate the Kahuna and Notch are both single phase, macrocrystic hypabyssal kimberlite dikes having similar visual and petrographic characteristics throughout. Given their relatively simple internal geology, Kahuna and Notch were modeled as separate bodies and the Mineral Resource Estimate was established by applying average grades from surface mini-bulk samples within each geological model. Sensitivity analyses of the grades at both 0.85 and 1.18 mm cut-offs are presented in Table 1.
Table 1: Inferred Mineral Resource Estimate for the Kahuna and Notch Kimberlites
*The reader is cautioned that Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability, and might never be converted into Reserves.
*Figures may not sum due to rounding. Significant figures do not indicate added level of precision.
The potential diamond valuation or mining characteristics of the Kahuna and Notch kimberlites have not yet been determined. However, a 2008 evaluation of Kahuna diamond characteristics by Mineral Services Canada (MSC) describes the Kahuna diamond population as having encouraging value characteristics, with a high abundance of colourless and near colourless varieties with octahedral shapes being the dominant morphology. The Notch kimberlite displays similar diamond characteristics to Kahuna and other significantly diamondiferous kimberlites within the Kahuna Project including the PST and Killiq kimberlites.
The Company cautions that the inferred resource cannot be used to construct an economic model of the project prior to assembling a package of diamonds for valuation. Dunnedin plans to expand the resource through completion of a 2015 drill program, followed by bulk sampling of the kimberlites to collect sufficient macrodiamonds for a valuation parcel.
Kahuna Mineral Resource Estimate
The Kahuna kimberlite is interpreted as a 5.5 km long, 2 to 4 m wide, sub-vertical dike defined by drilling, surface bulk sampling and geophysics. It has been intersected by 34 drill holes, totalling 2,506 m. The Kahuna kimberlite outcrops and has been intersected in drill core over depths ranging from 13 m to 127 m vertically from surface. Based on these parameters, and incorporating geophysical data and surface kimberlite exposures, APEX created a 3D geological model for the Kahuna kimberlite along a 4.7 km strike length with a maximum vertical extent of 207 m below surface, and width ranging from 0.5 m to 6 m, averaging approximately 3.2 m.
The Mineral Resource Estimate for Kahuna was determined by integrating kimberlite volumes with density, petrology and diamond content data obtained from 2,399 m of diamond drilling, 107 m of reverse circulation (RC) drilling, 721.8 kg of kimberlite submitted for microdiamond analysis (returning 3,652 stones greater than 0.15 mm), and 345.5 carats (11,603 stones greater than 0.85 mm) recovered from a 356.33 tonne surface mini-bulk sample (resulting in a modelled grade of 1.04 cpt, or 104 cpht based on additional stones recovered from a partial tailings audit). A total of 42 density measurements from drill core samples and 189 from surface samples produce an average calculated dry density of 1.99 g/cm3. Comparison of density data from drill core and surface samples revealed no significant variation with depth. Similarly, size frequency analysis of micro- and macrodiamond results from drill core and surface mini-bulk samples demonstrate uniformity in the diamond population throughout the kimberlite.
Notch Mineral Resource Estimate
The Notch kimberlite is located 12 km southwest of the Kahuna kimberlite. Notch is interpreted as a 3 km long, 0.5 to 2.5 m wide, sub-vertical dike defined by drilling, surface bulk sampling and geophysics. The Notch kimberlite outcrops and has been intersected by 10 diamond drill holes totalling 706 m. Kimberlite has been intersected in drill core over depths ranging from 5 m to 70 m vertically from surface. Based on these parameters, APEX created a 3D geological model along a 2.5 km strike length with a maximum vertical extent of 140 m below surface, and a width ranging from 0.5 to 2.5 m; averaging approximately 1.5 m.
The Mineral Resource Estimate for Notch was determined by integrating kimberlite volumes with density, petrology and diamond content data obtained from 706 m of diamond drilling, 414.9 kg of kimberlite submitted for microdiamond analysis (returning 1,716 stones greater than 0.15 mm), and 19.7 carats (329 stones greater than 0.85 mm) recovered from 21.9 tonnes of surface kimberlite, resulting in an average grade of 0.90 cpt or 90 cpht. A total of 14 density measurements from drill core samples and 34 from surface samples produce an average calculated dry density of 2.12 g/cm3. Comparison of density data from drill core and surface samples revealed no significant variation with depth. Similarly, size frequency analysis of micro- and macrodiamond results from drill core and surface mini-bulk samples demonstrate uniformity in the diamond population throughout the kimberlite.
NI 43-101 standards and Canadian Institute of Mining and Metallurgy (CIM) guidelines stipulate that a Mineral Resource needs to have a “reasonable prospect of economic extraction”. Based on the grade and tonnage of the Mineral Resource Estimate, diamond characteristics, and favourable location; it is the opinion of the Independent Qualified Person that the Kahuna Diamond Project is considered to exhibit reasonable prospects for economic extraction.
Mr. Kristopher J. Raffle, P.Geo. (BC), Principal of APEX Geoscience Ltd. is the independent qualified person responsible for the preparation of the Mineral Resource Estimate for the Kahuna Diamond Project. Mr. Raffle has reviewed and approved the contents of this press release.
For further information please contact Mr. Chris Taylor, M.Sc., P.Geo, CEO at 604 681 0084, or Mr. Allan Barry Laboucan, Special Advisor at 604 505 4753.
On behalf of the Board of Directors
Dunnedin Ventures Inc.
Chief Executive Officer
About the Kahuna Project
Kahuna is an advanced stage high grade diamond project located near Rankin Inlet, Nunavut. Three main diamondiferous kimberlite dikes have been drilled and bulk sampled and returned grades of 0.85 to 2.18 carats per tonne, the Kahuna, PST and Notch. The largest diamond recovered was a 5.43 carat stone from the Kahuna dike that had been broken during the sample preparation process and was reconstructed as having an original size of 13.42 carats. The dikes have comparable strike lengths, widths and grades to producing diamond mines and occur within a broad network of largely untested geophysical targets, overlain by dense diamond indicator mineral trains.
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 release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements