DNI Metals - Assays for an Additional 5 of 46 Drill Holes Received; Including 18m Grading 8.63% Graphitic Carbon
Toronto, Ontario--(Newsfile Corp. - January 22, 2018) - DNI Metals Inc. (CSE: DNI) (FSE: DG7N) (OTC Pink: DMNKF) ("DNI" or the "Company")
VHTAC0047: 7.50m @ 8.00% GC; from 16.00m
VHTAC0049: 4.50m @ 7.75% GC; from 7.00m
VHTAC0052: 18.00m @ 8.63% GC; from 5.50m (incl. 9.00m @ 11.19%GC; from 13.00m);
DNI Is pleased to announce the following (refer Figures 1 & 2 following):
Receipt of the fifth batch of drilling assay results from its recent drilling and trenching programme at its 100%-owned Vohitsara Graphite Project in Madagascar; incorporating five (5) additional assayed drill holes from both the Main and Southwest Zones. All holes were mineralised;
Drilling continues to confirm that free-dig saprolitic weathered material has been developed to depths in excess of 30 metres below natural surface; averaging 28m;
As previously reported, all drill and trench samples from the 2017 drilling programme have now been received at the Laboratory and further results are expected in the near term.
Dan Weir, CEO, commented: “We look forward to additional assays from this recent programme and to moving forward with building the pilot plant/small-scale production at our 100%-owned Vohitsara project, in 2018.”
Table 1: Composite Results:
All holes assayed were mineralised. A lower cut-off grade of 3.00% GC was applied to mineralised intercepts. A full listing of all 89 assay results is appended at the back of this document.
Disclosure: Note that insufficient geological data currently exist to accurately determine true mineralization widths as compared to intersection widths as listed in Table 1 above. Note also that the intersected mineralization is hosted within weathered in-situ saprolitic material and is known to be broadly disseminated within this regolith horizon in the area currently being tested by drilling.
Holes VHTAC0042 and 0046 are plotted on Figure 2 (Southwest Zone), with the remaining holes plotted on Figure 1 (Main Zone) appended to the back of this report. Also note that VHTAC0042 was later twinned by core hole VHTDD006; which returned a previously reported equivalent intercept of 6.00m grading 3.72% GC; from 5.50m down hole. All holes were drilled vertically to blade refusal.
All representative samples were prepared and collected by or under supervision of DNI's Country Manager, Steven Goertz. Mr. Goertz is a Geologist and is a Qualified Person under NI43-101 regulations. Mr. Goertz has approved this Press release.
The samples were processed at AGAT Laboratories, in Ontario, Canada. Graphitic carbon assays were performed using a modified infrared assay method. This method is preferable to other industry-accepted assay methods; inclusive of varying forms of Loss on Ignition (LOI) testing. All analysis were preformed using LECO instruments.
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, a director, previously 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 two permitted, saprolite-hosted graphite projects in Madagascar, Vohitsara and Marofody, which are located 50kms from the country's main seaport. These projects are contiguous, with the bulk of their respective mineralisation located between two (2) and four (4) kms from the paved national highway; which bisects the tenement area. DNI intends to develop both the Vohitsara and Marofody projects, 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.
DNI — Canadian Securities Exchange
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For further information, contact:
DNI Metals Inc. — Dan Weir, CEO 416-595-1195
Also visit www.dnimetals.com
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.
Figure 1: Summary Working Plan for the Vohitsara Project (Main Zone) - showing locations of all drill holes.
Figure 2: Summary Working Plan for the Vohitsara Project (Southwest Zone) - showing locations of all drill holes.
APPENDIX 1 — ASSAY RESULTS — DRILLING: