Agoracom: Small Cap Investment - Appalaches Resources Inc. - Confirms the Potential of the Dufferin Mine

Exploration & Development

Dufferin Gold Mine, Nova Scotia - Near Production

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Confirms the Potential of the Dufferin Mine

posted on Feb 05, 2009 05:37AM

February 5, 2009

Appalaches Confirms the Potential of the Dufferin Mine

RIMOUSKI, QUEBEC--(Marketwire - Feb. 5, 2009) - Ressources Appalaches (TSX VENTURE:APP) has successfully completed Phase 1 of its due-diligence study for the acquisition of the Dufferin Mine in Nova Scotia. Appalaches has reached its first objective: the drill program has confirmed the extent, continuity, and grade of the deposit's gold-bearing structures. Based on these positive results, the Company is now engaged in Phase 2 of its due diligence, which concerns the ore-processing plant (mill) and its production capacity.

Drilling Results

The drill program comprised 23 boreholes for a total advance of 2,995 metres. Sixty percent of these boreholes have grades in excess of 8 g/t Au, in line with the results from previous drilling and with the Company's objective: the definition of a deposit grading between 7 and 10 g/t Au (Press Release of 12/4/08).

The results include the sampling of a quartz vein and its wall rocks in Borehole F08-07, which gave 31.64 g/t Au over 4 metres, including 125.5 g/t Au over one metre. Sampling of several stratiform quartz veins in an argillaceous mudstone layer in Borehole F08-11 yielded a grade of 8.34 g/t Au over 9 metres. The following table shows 13 boreholes with analytical results in excess of 8 g/t Au, together with the number of the corresponding "saddle vein" (numbered from the surface downwards):

Drillhole      Azimuth     Dip      From    To   Length(i)  Saddle #   Au
#                                     (m)   (m)     (m)      (vein)  (g/t)
F08-01           165        53      84.9   85.1     0.2        2    110.0
F08-02           165        48      52.3   53.3     1.0        1    19.34
                        including   52.6   53.1     0.5        1     38.3
F08-03           165        82      15.0   15.3     0.3        1     27.2
F08-07           165        77     124.0  128.0     4.0        4    31.64
                        including  125.0  126.0     1.0        4    125.5
F08-07                 other vein  144.0  145.0     1.0        5     11.1
F08-07                 other vein  161.3  165.0     3.7        6    10.77
                        including  163.0  163.5     0.5        6     62.8
F08-08           165        63      15.0   15.2     0.2       -1     17.2
F08-08                 other vein   85.2   85.8     0.6        2     14.4
F08-09           165        82      79.0   79.4     0.4        2     21.4
F08-10           165        70      55.4   55.6     0.2        1    15.95
F08-11           165        82      26.0   35.0     9.0        1     8.34
                        including   26.0   27.0     1.0        1     70.3
F08-11                 other vein   85.9   86.4     0.5        3     18.9
F08-12           165        78      15.4   15.7     0.3       -1    14.65
F08-14           165        83      54.4   59.4     5.0        1      8.7
                        including   54.4   55.7     1.3        1     33.0
F08-16           165        83      28.2   29.4     1.2       -1     10.5
F08-17           165        82     211.8  213.8     2.0        7     8.52
                        including  211.8  212.2     0.3        7     22.1
F08-20           165        88      45.7   46.0     0.3        1    10.55

(i) Length of drill core sampled

Continuity of the deposit

As expected, the drill campaign has confirmed the extension of the gold-bearing quartz veins towards the east and in depth, as well as their regular arrangement, as predicted by the "Saddle Reef Vein" model. The principal characteristic of this type of deposit, which is also seen at the Dufferin Mine, is the continuity of stratiform veins associated with argillaceous beds and anticlinal folding.

Fifteen Saddle-type veins have so far been identified on the deposit. These 15 veins are disposed sub-horizontally in the noses of anticlinal folds, stacked one above another at intervals of 10 to 40 metres. The true thickness of some of these veins can be as much as three metres, on the axis of the anticline.

Extent of the deposit

The extensions of the veins have been followed for a horizontal distance of 725 metres and to a depth of about 300 metres. Boreholes were drilled at irregular intervals of from 25 to 100 metres between the drill sections to confirm the continuity of the saddle reefs. The continuity of the first three veins has been demonstrated by means of drill sections 25 metres apart, incorporating the earlier work. The possibility of a larger deposit was also indicated by the discovery of two new, near-surface veins to the east. The geologic and geophysical surveys also indicate that the deposit may extend in this direction. Currently, the mineralized zone extends over a length of 900 metres, and to a depth of nearly 400 metres.

Analyses

A total of 1286 core samples (NQ diameter) were analyzed for gold at the ALS Group Laboratory by the fire assay (Au-AA26) and gravimetric (Au-GRA22) methods. Half of the drill core was retained for all samples analyzed.

Additional information may be obtained from the Company. Visit our website at www.ressourcesappalaches.com.

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