DNI Metals - Drilling has Commenced - New Graphite Zones Discovered
Toronto, Ontario--(Newsfile Corp. - April 26, 2017) - DNI Metals Inc. (CSE: DNI) ("DNI" or the "Company") is pleased to announce the following:
- Drilling has commenced on DNI's Vohitsara graphite project in Madagascar.
- As the road and drill pads were/are being constructed, new graphitic zones were uncovered by the bulldozer.
- Drilling to focus on the main zone, but a few test holes will be drilled on secondary zones.
- The Main zone is over 2.5 kms long, drilling will start on the central 1 km portion of graphite mineralization where previous trenching returned grades up to 25% Cgr. See trenching press release dated September 24, 2015.
- Second payment of A$200,000 was received from Cougar Metals ("Cougar").
Dan Weir, CEO, of DNI commented, "We very excited to see the project move forward, and especially pleased to see new zones uncovered, on the 63 km2, Vohitsara project. We always thought this project would have multiple zones. Having a partner like Cougar and their experienced drill crew will help make the project move forward in a timely manner."
As per the Definitive agreement signed March 24, 2017 with Cougar:
- Cougar can earn into 50% of DNI's Madagascar Graphite Project.
- NI 43-101 Resource Report must be completed by June 30, 2017.
- NI 43-101 PEA (Preliminary Economic Assessment) must be completed by October 31, 2017.
- Cougar must drill a minimum of 3,000m to a maximum depth of 50m, and additionally complete 1,000m of trenching.
- The Saprolitic advantage of DNI's graphite project, will simplify drilling for Cougar's experienced team. Cougar completed a drill program of a Saprolitic graphite deposit in Brazil, in 2015/2016.
- Since Cougar did not withdraw from the project by April 12, 2017, Cougar is now obligated to pay DNI U$150,000 by June 7, 2017.
About DNI Metals
Certain advisors and directors of DNI have significant operational experience at historical hard rock graphite mines in Canada (e.g. Ontario and Quebec) and Australia. Between them, they have built three (3) processing plants and designed two (2) others; all, which were shut down in the 1990,'s due to increased Chinese competition. Keith Minty, director, worked at Cal Graphite near Kearny, Ontario.
It was our team's understanding of the high production and capital expenditure costs associated with so-called "hard rock" graphite mining that inspired DNI to search for saprolite-hosted graphite deposits.
Certain parts Madagascar and Brazil, produce graphite from weathered material called saprolite.
According to Dictionary.com, saprolite is described as:
"Soft, thoroughly decomposed and porous rock, often rich in clay, formed by the in place chemical weathering of igneous, metamorphic, or sedimentary rocks. Saprolite is especially common in humid and tropical climates. It is usually reddish brown or grayish white and contains those structures (such as cross-stratification) that were present in the original rock from which it formed."
DNI owns a commercially permitted, saprolite-hosted graphite deposit in Madagascar; located 50kms from the country's main seaport. The deposit is located less than two (2) kms from the paved national highway. DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established. DNI has not yet established mineral resources or mineral reserves supported by a PEA or mining study (PFS or FS).
DNI has a graphite wholesale business, in which it buys and sells high quality graphite. This business has shown a steady increase in volume over the past year.
Steven Goertz (MAusIMM, MAIG), who is a qualified person, approved the technical disclosure in this news release.
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We seek Safe Harbour. This announcement may include forward looking statements. While these statements represent DNI's best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including risk factors listed in DNI's Annual Information Form and its MD&A's, all of which are available from SEDAR and on its website.