Huxter Lane JV Project

60% Golden Dory (earning-in)
40% Paragon

Target: Near surface, bulk-tonnage gold deposit

Highlights

• NI43-101 compliant resource estimate - 196,000 ounces gold indicated and 569,496 ounces gold inferred
• Gold-bearing porphyry outlined over 950 metres strike length and widths of up to 500 metres; open in all directions
• Updated NI43-101-compliant resource  and metallurgical testing expected in early 2012
• Significant drill intercepts include 2.2 g/t gold over 35.0 metres, 0.67 g/t gold over 103.35 metres, and 0.5 g/t gold over 110.00 metres.

Technical Reports

Click here for the NI 43-101 technical report on the Huxter Lane Project (PDF 3.7MB)

Property Information

The Huxter Lane Project is located approximately 90 kilometres south of Grand Falls-Windsor, NL and 10 kilometres west of the Baie D'Espoir Highway. The property consists of 1 mineral licenses (86 claims) covering an area of 2,150 ha (21.5 square kilometres).   The project area is accessible by various logging roads originating from the Baie D'Espoir Highway. Secondary logging roads and trails provide good access to various parts of the property. The property is subject to a 2.5% NSR of which 1.5% can be purchased for $1.5 million.

In February 2009, Paragon optioned the property to Golden Dory Resources Corp. who can earn a 60% interest in the property by funding $2,000,000 in exploration expenditures over a four year period and making cash and share payments of $50,000 and 350,000 shares to Paragon.  Golden Dory may then elect to earn an additional 10% interest by issuing an additional 150,000 shares to Paragon and completing a bankable feasibility study.

The Huxter Lane Project covers the contact between ultramafic-mafic rocks of the Coy Pond Complex and felsic volcanic and marine siliciclastic rocks of the Baie d'Espoir Group. This contact is a major structural and stratigraphic break with gold mineralization, discovered in 2002, documented over a widespread area.

At the Mosquito Hill Deposit, the gold mineralization is hosted within extensive quartz-feldspar porphyry and displays many geological similarities to bulk-tonnage gold deposits of the Tombstone Gold Belt located in the Yukon and Alaska (ie. Donlin Creek, Fort Knox, Brewery Creek). The style of gold mineralization represents a new exploration target in Newfoundland and highlights the potential of the area to host large mineralizing systems with multi-million ounce gold potential.

Exploration Work & Gold Resource Estimate

From 2002 to 2008, Paragon and previous owner Rubicon Minerals Corporation completed detailed exploration work on the Mosquito Hill Zone that included 32 diamond drill holes which outlined extensive low grade gold mineralization. The gold-bearing porphyry intrusion has been traced over a strike extent of 900 metres and to a vertical depth of 225 metres and remains open both along strike and to depth.  Highlights of this drilling include 2.21 g/t Au over 35 metres (HX06-16), 1.02 g/t Au over 28.6 metres (HX06-01), 0.67 g/t Au over 37.75 metres (HX06-02), 0.66 g/t Au over 56 metres (HX06-13) and 0.65 g/t Au over 47.6 metres (HX06-06).

In 2009, Golden Dory optioned the Huxter Lane property from Paragon and completed 29 drillholes (5,040 metres) and in September 2010 released an updated 43-101 resource estimate for the Mosquito Hill Zone (the initial resource estimate was released in March 2010).  The revised resource, prepared by Giroux Consultants, estimated that the Mosquito Hill Deposit contains an indicated resource of 11.18 million tonnes averaging 0.546 g/t Au (grams per tonne gold) for 196,257 ounces gold, and an inferred resource of 38.76 million tonnes averaging 0.457g/t Au for 569,496 ounces gold at a cutoff of 0.30 g/t Au.  The table below shows the resources ranges at various cutoffs. 

Mosquito Hill Zone - Indicated Resource within the mineralized solid

Mosquito Hill Zone - Inferred Resource within the mineralized solid

Drilling by Golden Dory in late 2011 (7 drillholes, 1,553 metres) has extended the mineralization at the Mosquito Hill Deposit 50 metres to the west of the current gold resource.  A single reconnaissance drillhole, HX11-66 (235.0 metres) was designed to drill test a strong IP geophysical and coincident gold soil anomaly located about 800 metres to the northwest of the currently defined gold deposit.  The drillhole intersected 82.5 metres of altered and mineralized porphyry with anomalous gold values. This altered porphyry is reported to be similar in its appearance, alteration and mineralization to the nearby Brady Deposit and forms a third mineralized intrusive body within the area.

Golden Dory plans to update the NI43-101 gold resource and complete preliminary metallurgical testing by late March, 2012.

Results

2006-2011 Huxter Lane Drill Results