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Dorato Acquires Deborah Gold Property in Prospective Northern Peru Copper-Gold Porphyry Belt
9/26/2011 1:46:12 PM - Market Wire

http://www.minem.gob.pe/images/publicaciones/LAMINA-26eiiz5zdzy0342zz0.jpg

Historic Drilling Results Include 44 Metres at 0.7 g/t Gold

VANCOUVER, BRITISH COLUMBIA, Sep 26, 2011 (Marketwire via COMTEX News Network) --

Dorato Resources Inc. ("Dorato" or the "Company") (TSX VENTURE:DRI)(OTCQX:DRIFF)(FRANKFURT:DO5) is pleased to announce that, it has entered into an option agreement to acquire a 100% interest in the Deborah Gold property, Cajamarca, Peru. The property is nestled between several major ore deposits including Anglo American's Michiquillay Copper-Gold Porphyry, located 6 kilometres to the southwest (631MT of 0.69% copper, 0.15 g/t gold, and 0.02% moly) and China Minmetals and Jiangxi Copper Corp's El Galeno Copper-Gold Porphyry, located 6 kilometres to the north (661MT of 0.50% copper, 0.12 g/t gold) (Figure 1), though it is not possible to determine if similar results will be obtained from the property."The Deborah property represents an excellent exploration opportunity providing a foothold into the southern portion of this prolific porphyry-epithermal belt. Historic drill results on the property indicate the presence of a gold-endowed system with both high-grade and bulk-tonnage gold targets to be explored in the coming months," stated Keith Henderson, Dorato's President & CEO, "Infrastructure and access in the project area are excellent and surface prospecting work is expected to begin in the near future."

Regional Context

There are several major, large scale producing mines and significant development projects in the belt (see Figure 1) and, more importantly, in the immediate vicinity of the property (Figure 2). The geology between all local deposits is similar, with mineralization related to Miocene dacite porphyry stocks intruding Lower to Upper Cretaceous carbonate and sandstone units, though it is not possible to determine if the Deborah property will be similar.

The Michiquillay deposit (6 kilometres to the southeast) is controlled by Anglo American Plc, who acquired the deposit in 2007, having submitted the winning bid in a public auction process. Anglo acquired the property for $403M. The deposit hosts 631 Mt grading 0.69% copper, 0.15 g/t gold, with 100-200 ppm molybdenum. Exploration and resource definition is ongoing.

The El Galeno deposit is controlled by Copper Bridge Acquisition Corp ("CBAC"), jointly owned by China Minmetals and Jiangxi Copper Corp. CBAC acquired the deposit from Northern Peru Copper Corporation in 2008 for $455M. At the time of sale, the prefeasibility study estimated probable reserves of 661Mt grading 0.50% copper, 0.12 g/t gold, and 0.013% molybdenum.

The gold breccia at Hilorico (Figure 2), 1 kilometre northeast of Galeno on the adjacent El Molino concession, may be the closest geological analogue to Deborah property, although this interpretation will have to be tested by future exploration. Northern Peru Copper completed 13,000 metres of drilling at Hilorico before the transaction with CBAC in 2008. Historic drill intersections of note include 213 metres of 1.04 g/t Au and 1.6 g/t Ag, and 82.5 metres of 1.04 g/t Au. According to the 2007 Prefeasibility study (NI 43-101 compliant), the deposit contains Inferred Resources of 19.4MT at 0.65 g/t gold and 3.3 g/t silver (407,000 ounces using a 0.3g/t gold cut-off in the oxide zone), with additional sulphide resources of 21.3MT at 0.93 g/t gold and 4.8 g/t silver (641,000 ounces at 0.5 g/t gold cutoff).

The technical information with respect to the above deposits was obtained through the respective companies' public disclosure documents.

To view Figure 1, visit the following link: http://media3.marketwire.com/docs/Figure1DRI.pdf

Deborah Exploration History

There are numerous exploration and small scale gold production adits on the Deborah property developed over the last 100 years targeting gold-rich structures, replacements and breccia bodies. Deborah was first formally explored by Newmont Peru from 1992 to 1995 as part of a regional exploration program targeting the Debroah and El Galeno properties. Newmont drilled 13 holes at Deborah before returning to El Galeno in 1995 to pursue the discovery of auriferous stockwork breccia in the sediments.

To view Figure 2, visit the following link: http://media3.marketwire.com/docs/Figure2DRI.pdf

The underlying property vendors have provided historical exploration data from Newmont's exploration drill program. Gold and silver assay results include:

   -------------------------------------------------------- DRILLHOLE       THICKNESS (m)    GOLD (g/t)  SILVER (g/t) -------------------------------------------------------- DEB-002                 9.20          1.26           2.6 -------------------------------------------------------- DEB-003                51.35          0.51           3.4 --------------------------------------------------------  and                   44.00          0.73          12.3 -------------------------------------------------------- DEB-004                47.75          0.59          18.0 -------------------------------------------------------- DEB-005A                4.05          1.30          43.0 --------------------------------------------------------   

 

These holes appear to have targeted breccia in quartzite adjacent to an area of sulphide veining in the southwest corner of the concession, where surface channel samples returned anomalous precious metal values.

Deborah Geology

Thick-bedded to massive quartzite of the Late Jurassic Chicama Formation and/or Lower Cretaceous Chimu Formation is intruded by hornblende granodiorite and dacite porphyry, the latter of which forms a large recessively weathered central stock on the property

Carbonate of the Santa Formation is present in the northeast corner of the concession, apparently in fault contact across a 1-5m wide pyrite-bearing breccia. These units are the same as those hosting mineralization at El Galeno 6 km to the northwest, and Michiquillay 6 km to the southwest.

Exploration Potential

The 13 holes drilled by Minera Yanacocha (Newmont) are concentrated in the area of historic workings, and appear to have targeted the down dip extension of the near-vertical gold-silver rich replacement bodies and related southeast trending breccia along the western edge of the concession (Figure 3). None of the holes were drilled under an extensive recessive zone northeast of the main quartzite hill, and neither was the area covered in the surface rock sampling. Part of this area was mapped as dacite porphyry, though it is much more recessive than the dacite porphyry to the south.

Mineralization at the Galeno porphyry deposit is also recessive and forms a topographically low area in the surrounding resistive quartzite. The central recessive zone at Deborah is therefore considered a prospective area, as this is where highly fractured and mineralized zones might be expected to occur. The recessive zone is in fact on strike with the tectonic breccia related to the regional Punrre fault, which geologically connects Deborah with the Hilorico gold-breccia target east of Galeno, and may represent a splay of the structure. Also, the carbonate could be an important unit in terms of hosting disseminated mineralization in permeable (decalcified) sandy horizons along strike and adjacent to the mineralized breccia. This target has yet to be drill tested.

Work Plan

The property is located only one hour east of the city of Cajamarca (Figure 1), with good access via paved and dirt roads (see Figure 2). Work is scheduled to commence following receipt of approvals. In addition to remapping, the property will be sampled with both soil and rock grids, since very little of the historic surface data is available. The recessive area between the two groups of drill holes, as shown in Figure 3, will be a priority. The trail cuts leading up across the recessive area will be mapped first to determine the depth of overburden and, if it is less than a few metres, trenches and pits will be dug in the area and any bedrock sampled.

This property is another step in developing a presence in the prospective Northern Peru Porphyry Belt (Figure 4). Dorato's Cobrecon copper-gold-moly porphyry project lies at the extreme north end of the belt, within the Company's Cordillera del Condor project area. Additional properties and potential acquisitions in the belt will be reviewed once work gets underway at Deborah.

To view Figure 3, visit the following link: http://media3.marketwire.com/docs/Figure3DRI.pdf

Commercial Terms

Under the terms of the option agreement, the Company can acquire a 100% interest in the property in exchange for cumulative payments of $6,000,000 over a minimum of 5 years. The detailed terms of the option agreement are summarized in Table 1 below.

   --------------------------------------------------- Event                                          Cash --------------------------------------------------- TSX-V Approval 'effective date'             $50,000 --------------------------------------------------- On commencing drill-testing 'drill date'   $200,000 --------------------------------------------------- 1 year anniversary of drill date            400,000 --------------------------------------------------- 2 year anniversary of drill date            600,000 --------------------------------------------------- 3 year anniversary of drill date            900,000 --------------------------------------------------- 4 year anniversary of drill date          1,200,000 --------------------------------------------------- 5 year anniversary of drill date          2,650,000 ---------------------------------------------------   

 

The option agreement requires an immediate payment of $50,000 on receipt of TSX-V approval ("Effective Date"). On completion of the deal, the Company will begin systematic surface exploration of the property. A second payment of $200,000 is payable on the commencement of drilling ("Drill Date") and all subsequent payments are tied to this drill-related anniversary. In addition, a royalty of $4.00 per ounce of gold produced is payable to the underlying vendors, up to a maximum of $2,000,000. There was no finder's fee paid by the Company in connection with the Option Agreement.

To view Figure 4, visit the following link: http://media3.marketwire.com/docs/Figure4DRI.pdf

Qualified Person

John Drobe, P.Geo., Dorato's Vice President of Exploration and a qualified person as defined by National Instrument 43-101, has reviewed and takes responsibility for the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the Company as he is an officer and a shareholder.






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#13   Dorato Resources Inc. changed to Xiana Mining Inc. Renee 10/22/13 09:42:32 PM
#12   DRIFF is smells like winner. kranthikumar 06/24/13 09:59:42 AM
#11   Yup been buying have a nice cup full B-Money 01/03/12 08:55:04 AM
#10   accumulation time!! hinchback 01/02/12 09:49:10 PM
#9   outstanding shares used to calculate income (loss) per B-Money 11/18/11 07:06:38 AM
#8   Dorato Announces Management and Board Changes Penny Roger$ 10/31/11 03:29:05 PM
#7   images.investorshub.advfn.com/images/uploads/2011/10/2/eziofLAMINA-26eiiz drluck 10/02/11 08:15:33 PM
#6   Amazing opportunity , in the middle of the drluck 09/28/11 10:52:31 AM
#5   http://stockcharts.com/h-sc/ui?s=DRI.V ...... chart drluck 09/27/11 05:52:22 PM
#4   Amazing New Property http://www.doratoresources.com/s/Cajamarca.asp drluck 09/27/11 05:22:46 PM
#3   Dorato bought amazing property with a big opportunity drluck 09/27/11 05:01:24 PM
#2   UP 36% !!!!!!!!!!!!!!! drluck 03/08/10 10:08:44 AM
#1   What happen BUY ALERT? Dandy 03/03/10 06:17:56 PM
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