Red Dragon Starts Drill Program on the Maués Project, Northern Brazil
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The Doze de Outubro target is a gold in soil and rock geochemical target that is about 850 metres long by 200 metres wide that trends east to northeast. The anomaly is coincident with a number of artisanal workings (garimpos) that expose quartz-sulphide vein stockworks hosted by felsic volcanic and volcaniclastic rocks. Grab samples of the vein material commonly grade several grams per tonne gold, whereas the pervasively altered wall rock adjacent to the veins commonly grades less than 1 gram per tonne. The initial drill holes will be collared north of the garimpos and drilled to the southeast to test the width and down dip extent of the steeply dipping mineralization exposed in the garimpos. Depending on results, 1,000 metres of drilling is planned for this target before moving the drill to test a large gold in soil anomaly on the Rosa de Maio property.
The Rosa de Maio gold in soil anomaly is approximately 5 kilometres in diameter and is underlain by altered granite containing disseminated sulphides and quartz-sulphide stockworks. Grab samples of this mineralization commonly grades several grams per tonne gold, and the style and tenor of mineralization is similar to many of the gold porphyry deposits currently being evaluated in the Tapajos Mineral Province. The soil anomaly is coincident with a flexure in a large northeast trending regional scale fault, as are a number of other soil anomalies on the property. Anta creek, which flows eastward into the Tapajos River, cuts the northern part of the anomaly. The creek and its tributaries were the focus of extensive alluvial mining in the 1980's and 1990's with un-official gold production estimated to be 0.5 million ounces.
Red Dragon is earning an 80% interest in the Maués Project by funding exploration and making cash payments to the owner of the properties; the details of the Agreement are outlined in the Company's News Releases dated
Since signing the Agreement, the Company has established drill camps and up graded the airstrips at the Doze de Outubro and Rosa de Maio properties. Geophysical (ground magnetic) surveys are nearly completed at the Doze de Outubro property and once finished the crew will move to the Rosa de Maio property to survey that property. Soil sampling crews are currently extending and infilling the soil sampling survey at the Bandeirantes property to identify new targets and refine currently identified gold targets.
The Company recently completed an independent National Instrument 43-101 Technical Report on the Maués Project, which can be downloaded from the Company's website (www.reddragonresources.com) or from the System for Electronic Document Analysis and Retrieval ("SEDAR", www.sedar.com). The report summarizes the geology and previous exploration programs on the properties and identifies seventeen gold targets with recommendations for additional follow up exploration programs. The report was written by
About Red Dragon Resources Corp.
Red Dragon Resources Corp. is a Canadian based company with a focus on acquisition, exploration and development of mineral properties. The Company has a balance sheet of Cdn$9 million in cash and cash equivalents of Cdn$9.1 million in investments as of
Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
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 the accuracy of this news release.
For further information: Red Dragon Resources Corp., Alvin Jackson, Chairman and Chief Executive Officer, Tel: (604) 602-8188; Harbour Financial Inc., Brian N. Barbour, Tel: (403) 813-5832
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