TORONTO, June 23 /CNW Telbec/ - Xmet Inc. (TSXV:XME) ("Xmet") is pleased to announce the commencement of operations on the Duquesne-Ottoman gold property, situated near the town of Duparquet, located 40 kilometers northwest of the town of Rouyn-Noranda, Quebec and accessible by paved highway. The property is located within the historical Duparquet gold mining camp along the prolific Porcupine Destor Fault Zone, which has produced over 80 million ounces of gold in the past.
Former gold producers located along strike to the west of the Duquesne-Ottoman property include the Beattie and Donchester mines, while the former producing Duquesne gold mine is located immediately east of the property (see attached map). These three deposits, which collectively produced over 1.5 million ounces of gold during the period from 1933 to 1991, are currently held under a Joint Venture Agreement between Osisko Mining Corporation ("Osisko") (TSX:OSK; Deutsche Boerse:EWX) and Clifton Star Resources ("Clifton Star") (TSXV:CFO). Under the terms of the Duparquet Agreement, Osisko can earn a 50% interest in the Duparquet Joint Venture by investing $70 million over a four year period, with a firm commitment totaling CDN $15 million in 2010. A 120,000 meter drilling program is currently underway on the Duparquet Joint Venture, under the supervision of Osisko, targeting the expansion of the Beattie, Donchester and Duquesne gold deposits. For further details refer to the Osisko website www.osisko.com under Press Archives for their news releases for the Duparquet Joint Venture Project.
The Beattie-Donchester property is host to porphyry-style, low grade, potentially open pittable gold mineralization consisting of tabular, subvertical, sheared and brecciated, potassic altered syenite porphyry intrusions and quartz feldspar porphyry dikes that are mineralized with finely disseminated pyrite and gold with variable amounts of arsenopyrite. Typically these intrusions occupy splay structures which extend eastward off of the Porcupine Destor Fault Zone. Total strike length of the mineralized porphyry intrusions currently defined by drilling on the Duparquet Joint Venture project is in excess of 5.5 kilometers. An updated NI43-101-compliant resource estimate for the Beattie and Donchester deposits was prepared by Peter Beven, P. Eng., on October 22, 2009 and is available on SEDAR; www.sedar.com for Clifton Star Resources. Combined measured, indicated and inferred resources using a 1.0 g Au/t cutoff for the Beattie deposit (including North, South and RW Zones) currently stands at 992,728 ounces, while the nearby Donchester deposit (including North and South Zones) is currently reported to contain 1,102,661 ounces Au. The Beattie-Donchester property is located immediately to the west of the Duquesne-Ottoman property. The intrusions and structures hosting the Beattie-Donchester deposits trend towards the east and could extend onto the Xmet's property.
Located immediately to the east of the Duquesne-Ottoman property, the former producing high grade Duquesne mine operated intermittently during the periods from 1949 - 1951 and from 1990 - 1991, with reported historical production of over 67,000 ounces of gold at an average grade of 10.81 g Au/t. Gold mineralization is associated with a series of both east-west and north-south oriented splay structures which extend east-west and to the north of the Porcupine Destor Fault Zone. Four vein systems have been drilled tested by Clifton Star and Osisko over a strike length of 1400 meters west of the old mine workings and to a depth of 920 meters. Gold bearing silica and carbonate altered quartz feldspar porphyry and syenite porphyry intrusions contain disseminated pyrite mineralization where they have intruded ultramafic and volcanic sequences. Clifton Star has noted that the gold bearing systems at the Duquesne mine become wider with increasing gold values at depth.
A field visit conducted during the first week of June 2010 by Xmet geologists targeted the eastern boundary of the Duquesne-Ottoman property. The Nipissing Vein system is located in the northwest part of the adjacent Duquesne Mine property and drill results reported in Clifton Star - Osisko news releases over the past year demonstrate excellent potential for this mineralized structure to extend across their western property boundary onto Xmet's claims where similar mineralization has previously been identified in drill hole as the "Nip" Zone. The "Nip" target has excellent potential for both high and low grade gold mineralization, such as the significant results reported to date by Clifton Star - Osisko for their Nipissing vein system.
Xmet geologists recognize that the Duquesne-Ottoman property shares key geological similarities with the Beattie-Donchester-Central Duparquet and Duquesne properties located to the west and east along strike of the property, leading to the tentative conclusion that the property has excellent potential for hosting Beattie style gold mineralization on the property. A review of the 65,000 meters of drilling completed to date on the Duquesne-Ottoman property has identified numerous silicified and carbonatized gold bearing syenite and quartz feldspar porphyry intrusions associated with major east-west trending splay faults which trend across the property. High grade gold zones on the property include the Fox, Shaft, East Shaft, Liz, East Stinger, Pitt, South and Nip Zones. On May 27th, 2010, a NI43-101-compliant Technical Report for the property, prepared by Reddick Consulting Inc., was published on SEDAR: www.sedar.com.
Xmet Inc. has an option to acquire 75% interest in the Duquesne-Ottoman property by making cash payments totaling $7.76M and by investing a total of $10M in exploration on the property over 4 years. Most of the cash and work commitments are due in the last year of the option.
Xmet believes it can efficiently build gold ounces on the existing high grade resource on the property but also plans to explore the potential for broad low grade zones of gold mineralization surrounding the higher grade structures as well as the relatively under-explored southern contact of large syenite porphyry intrusions located on the northern half of the property. A field office has been opened in Rouyn-Noranda and key staff have been hired.
About Xmet Inc.
Xmet Inc., through its wholly-owned subsidiary Duquesne-Ottoman Mines Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource exploration and development. Pursuant to the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase 75% of the common shares in the capital of Duparquet Assets Ltd, which legally and beneficially owns 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares located approximately 40 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release. Mr. Bill Yeomans, P.Geo., Xmet's Vice President Exploration, is the designated Qualified Person responsible for this release. Note that mineral deposits described on adjacent properties may not be discovered or developed on Xmet's property and that exploration results obtained on adjacent properties may not be duplicated on Xmet's property.
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SOURCE Xmet Inc.
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