November 12, 2015 – Vancouver, BC, Canada. – Dunnedin Ventures Inc. (the “Company” or “Dunnedin”) (TSX-V: DVI) is pleased to announce the first diamond results from the Company’s 2015 summer field investigation program. A 0.82 tonne sample of the PST kimberlite has yielded 96 macrodiamonds (+0.85 mm) totalling 5.34 carats, for a sample grade of 6.50 carats per tonne. The sample grade is higher than the historically reported result of 2.18 carats per tonne, and recovered diamonds include an octahedral crystal weighing 0.77 carats and a polycrystalline diamond weighing 2.22 carats. A preliminary examination of the diamonds suggests approximately 50 – 60 percent are clear and colourless. Results are summarized in the table below.
Table 1: Diamond results from 0.82 tonne PST sample.
“These are some of the best diamond results reported in Canada and distinguish Dunnedin’s Kahuna Project as having kimberlites with both high grades and large diamonds,” says Chris Taylor, Dunnedin’s CEO, “While our diamonds have the same overall size distribution as historically reported for PST, we have also recovered several large stones. Their recovery demonstrates the presence of a coarse diamond component at PST similar to the Kahuna kimberlite, where a 13 carat diamond was historically reported.”
Over the next several months, diamonds will continue to be recovered from kimberlites sampled this summer. The Company will also process over 180 sieved till concentrates collected across the property that are expected to generate new targets; mapping and interpretive work have revealed an extensive network of kimberlite-intruded structures with many potential dike, dike blow and pipe targets on the property (see Dunnedin news release of June 29, 2015).
Mr. Taylor adds, “With its location close to newly commissioned mining infrastructure and communities that boast skilled work forces, the Kahuna Project is an ideal choice for diamond mine development that can benefit both Dunnedin’s shareholders and the project’s experienced local stakeholders in Rankin and Chesterfield Inlets.”
The PST sample was treated through an autogenous mill-fusion circuit located at CF Mineral Research Ltd. of Kelowna, British Columbia, using a lower size cut-off of 0.425 mm. The Company did not opt to recover diamonds below a 0.425 mm cut-off as the large population of diamonds retrieved was already sufficient for sample characterization. Unlike standard DMS recovery methods, the circuit can recover nearly all diamonds present in a kimberlite to the predetermined cut-off size, along with associated indicator minerals. The Company notes that the reported sample results do not constitute a deposit grade, and insufficient work has been completed to date to define a mineral resource at PST. The PST kimberlite was not included in the 4 million carat Inferred Resource based on shallow drilling along partial strike lengths of the Kahuna and Notch kimberlites that was released by Dunnedin earlier this year (see news release of January 26, 2015; average grade of 1.01 cpt (+0.85 mm) from 3.99 million tonnes of rock).
The diamonds are currently being photographed and images with descriptions will be posted to the Company website in the coming days. The Company plans to next process material from the Notch kimberlite and will continue to compare historical results to current.
About the PST Kimberlite
- Near vertical high grade kimberlite dike that is exposed at surface
- Historical and current samples were taken within metres of each other
- Historically reported grade of 2.18 carats per tonne (+0.85 mm) from a 3.55 tonne sample, current sample grade of 6.50 carats per tonne (+0.85 mm) from a 0.82 tonne sample
- Drilling is limited to 200 metres of strike to a maximum depth of approximately 50 metres; remains open along strike and at depth
- Extends north under thin gravel cover, however diamondiferous kimberlite was drilled 1.2 km away directly along strike, coincident with magnetic and resistivity signatures that suggest potential continuity of up to 2.5 km
- Insufficient exposure and drilling to define width; more work is required
- One of several diamondiferous kimberlites discovered thus far within a 2 km radius of PST, including Killiq, 07-KD-24, and Notch. 07-KD-24 is notable for having historically recovered 305 diamonds including 7 macrodiamonds (+0.85 mm) from a 2.2 kg (0.0022 tonne) drill core sample.
The Company also reports it has closed a first tranche of 2,633,332 shares at $0.06 per share for gross proceeds of $158,000 related to its ongoing private placement. Proceeds will be used to support sample analysis and diamond recovery from additional kimberlite samples, and for general administrative purposes.
Mr. R. Bob Singh, P.Geo, Exploration Manager, is the qualified person responsible for the technical content of this news release.
For further information please contact Mr. Chris Taylor, M.Sc., P.Geo, CEO at 604 681 0084.
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, Kahuna, PST and Notch, have been drilled and bulk sampled and returned grades of 0.85 to 2.18 carats per tonne. Dunnedin is now recovering diamonds from a series of samples collected in summer 2015, with the first 0.82 tonne PST sample returning 96 macrodiamonds totalling 5.34 carats (+0.85 mm), yielding a sample grade of 6.50 carats per tonne. An Inferred Resource released by Dunnedin showed over 4 million carats of macrodiamonds (+0.85 mm) at a grade of 1.01 carats per tonne had been defined along the partial strike length of the Kahuna and Notch kimberlites through shallow drilling. 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.Type your paragraph here.