Property Highlights

  • Located 17 km northwest of Uranium City, Saskatchewan;
  • Historic grab samples up to 2,458.4 oz/t Ag (1);
  • Historic report on the property states “Approximately five million tonnes averaging 0.4 ounce per ton Ag and 0.4 per cent Cu(undefined category historic resource estimate) (1) **;
  • Four IP anomalies, elsewhere on the property associated with silver mineralization, have never been drilled.

Overview

dianna-lake-trenches-nr-sept-06-2016-1024x710Sampling Locations (Highlights) from July 2016 Reconnaissance Program

(News Release dated September 06, 2016)


The Dianna Lake silver project consists of 131 hectares located 17 kilometres northwest of Uranium City, Saskatchewan.

Durango’s Dianna Lake Silver Prospect covers a historic area in which, from 1968 to 1969, two high-grade, primarily native silver-bearing exploration targets of between 30,000 and 50,000 tonnes grading five to 10 ounces per ton silver, approximately 600 metres apart, were determined by trench grab sample assays, according to a historic evaluation report composed for Comaplex Resources in 1980 (1)*. Additionally, the main silver-bearing zone is spatially associated with a large zone of low-grade, disseminated copper-silver mineralization in which “drilling of two IP anomalies indicated approximately five million tonnes averaging 0.4 ounce per ton Ag and 0.4 per cent Cu” (undefined category historic resource estimate), according to the same report (1) **.

Fourteen additional induced polarization anomalies in the historic exploration area surrounding Dianna Lake and the nearby Doug Lake remain yet undrilled, according to the Comaplex Resources report (1), four of which occur within the property boundary of Durango’s Dianna Lake silver project.

Previous work on the claims was reported in 1969, 1980 and 1998 and included diamond drill holes, trenches, and pits primarily across two zones where mineralization was identified at or near surface. One zone was reported to have five trenches exposing Ag-Cu mineralization over approximately 80 metres. Historic grab samples from Pit 1 of this zone included ounce-per-ton silver values of 2,458.4, 684.4, 647.4, 600.2, 464.2, and 454.8 ounces per ton Ag. Out of 18 grab samples, 13 samples assayed between 185.0 and 2,458.4 ounces per ton. Pit 2 grab samples returned reported highs of 298.0 and 197.0 ounce per ton Ag (out of seven samples ranging from 12.2 to 298.0 ounces per ton Ag) (1).

(The Company cautions that grab samples are selective and may not be representative of the mineralization on the property.)


sk-silver11Figure 1.  From “Evaluation report of the Dianna Lake silver–copper property, CBS 3141, S-97735 and S-97736, Uranium City area, Saskatchewan, Canada, for Comaplex Resources International Ltd.” (1)


img1Figure 2.  From “Silver Area – Trench Assays” in “Evaluation report of the Dianna Lake silver–copper property, CBS 3141, S-97735 and S-97736, Uranium City area, Saskatchewan, Canada, for Comaplex Resources International Ltd.” (1)


Geological Background

Regional Geology

The north shore of Lake Athabasca is within the Athabasca-Rankin region of the Churchill geological province of The Canadian Precambrian shield. The most abundant rocks in the area are highly metamorphosed sediments known as the Tazin group. Much of the Tazin group has been granitized and intruded by aplite, pegmatite and diabase dykes. The Tazin group is locally overlain by unmetamorphosed arkose, conglomerate, and siltstone of the Martin Formation and Athabasca Formation.

The Tazin rocks are severely folded along northeasterly trending axes. There are three major sets of faults in the region. The most prominent set trends 60°, the other two trend 90° and 45°. These faults are commonly sharply defined, and many may be traced for tens of miles. A major fault zone, the Charlotte River fault system, runs from the mouth of the Charlotte River to the east end of Tazin Lake. This major system is associated with several minor structures. All the fault structures in the Dianna Lake area are related to this system.

Local Geology

The area was mapped by Hale (1953) as being part of the White Lake Granite Complex. The area of interest is underlain by a highly metamorphosed, faulted and folded sedimentary sequence cut by diabase dykes. The rocks represent a remelt of the original sediments and recrystallization to rocks of granite to diorite composition and texture.


Mineralization

To date, evidence suggests that the mineralization was originally deposited in pelitic sediments that have subsequently been intensely metamorphosed, folded, and fractured resulting in a portion of the silver-copper mineralization being locally remobilized and concentrated in fractures. Native silver mineralization occupies small discontinuous fractures along with lesser amounts of copper, silver, cobalt and nickle bearing minerals. This type of mineralization is confined to the granitic textured unit (massive) of granodiorite to diorite composition.


* Potential quantities and grades are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

** A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or reserves. Further work must be carried out to verify all historic information before a resource estimate is possible.


References (1) “Evaluation report of the Dianna Lake silver–copper property, CBS 3141, S-97735 and S-97736, Uranium City area, Saskatchewan, Canada, for Comaplex Resources International Ltd.” E.G. Kennedy, PEng, 1980.