ASX/Media Announcement 25 March 2013 MAIDEN HIGH-GRADE JUDY LODE RESOURCE INDICATES POTENTIAL TO INCREASE ANDY WELL MINE LIFE 106,000 ounce high-grade resource (Indicated & Inferred) Judy South (137,000t @ 19.3g/t for 85,000 ounces) resource remains open at depth and along strike Potential for significant increase to Andy Well mine life Increases Andy Well global resource to 444,000 ounces (Indicated & Inferred) Doray Minerals Ltd (ASX: DRM, Doray or the Company ) is pleased to announce a maiden, high-grade JORC-compliant gold resource for the, adjacent to the current mining operations within the Andy Well Gold Project in Western stralia. The new resource is a result of the recent RC drilling campaign and is the second high-grade gold resource to be defined within the Andy Well project by Doray. The combined Indicated and Inferred resource for the totals 106,000 ounces and is outlined in the table below (see resource estimation summary in the appendices for further details). Significantly, the total resource includes the very high-grade Judy South zone (137,000t @ 19.3g/t for 85,000 ounces), which makes up approximately 80% of the total contained ounces (Figure 1.). resource inventory. Indicated Inferred Total Judy South 80,000 21.1 55,000 57,000 16.3 30,000 137,000 19.3 85,000 Judy North 145,000 3.2 15,000 111,000 1.6 6,000 256,000 2.6 21,000 Judy Total 225,000 9.7 70,000 168,000 6.7 36,000 393,000 8.4 106,000 Doray s Managing Director, Mr Allan Kelly, explained that he expected the estimation of a second high-grade gold resource within the Andy Well Gold Project to have a significant positive impact on the project. This new high-grade resource, in close proximity to the future underground Wilber Lode mining operations, has the potential to add to the initial 3.7 year mine life indicated by the Bankable Feasibility Study completed in the middle of 2012, Mr Kelly said. Before we have commenced underground mining of the, we have been able to discover and drill out a second high-grade gold resource from surface, he said.
Importantly, based on our experience so far and, given the nature of the mineralisation, we believe we should be able to again achieve a high conversion rate from resource to reserve at Judy. This should then translate into an increased mine life at Andy Well to almost 5 years. The estimation of this second high-grade resource confirms Doray s long held belief that Andy Well has the potential to host multiple deposits and increases the total Andy Well resource to 1.22Mt @ 11.3g/t for 444,000 contained ounces. In addition to this maiden resource for Judy, the drilling has also provided evidence for further extensions to the high grade deposit, Mr Kelly added. Drilling Between December 2012 and February 2013, RC drilling was completed at a nominal 50m x 50m spacing across the Judy structure. Significant results from the recent drilling programme include: MNRC056-2m@ 42.2g/t from 195m MNRC191-2m @ 15.2g/t from 119m MNRC197-2m @ 35.7g/t from 131m MNRC201-2m @ 21.6g/t from 202m All results from this latest drilling campaign are summarised in Table 1. Drilling has highlighted a southerly plunge to the mineralisation and it remains open at depth and along strike, notably south of the very high-grade Judy South zone. North of a crosscutting dolerite dyke, there is a change in the host rock (Figure 1) where the shear zone and crosscuts a felsic porphyry unit. This change in host rock within the Judy North zone corresponds with a decrease in the average grade. To date, drilling within the has been limited to a depth of approximately 250m below surface, compared to Wilber, which has been defined to a depth of 480m below surface thus far. There remains significant potential to extend the high grade mineralisation at depth. Further exploration of the Judy structure along strike and down plunge is planned for the coming year. Southern Extension Drilling by Doray in the Judy South area has also intersected the interpreted southern extension of the, in the hangingwall to the Judy structure, in a number of holes. Significant results in this southern extension to the include: MNRC199-2m @ 15.9g/t from 53m MNRC174-1m @ 13.4g/t from 52m All significant results to date are presented in Table 2. These results extend the known Wilber mineralisation by a further 300m south of the currently defined Resource area. Given the proximity to a probable second underground mining operation at Judy, this area now also becomes a priority exploration target for further drilling.
Figure 1. Long section of, showing the resource outline and highlighting recent drilling results. Figure 2. Long section of the resource showing the breakdown of indicated and inferred categories.
Andy Well Development Update The Company advises that mining and construction at Andy Well is progressing on schedule and will provide an update to the market in coming weeks. For further information, please contact: -ENDS- Allan Kelly Anna Staples Managing Director Director Doray Minerals Limited AMN Corporate +61 (08) 9226 0600 +61 (0)4 00 205 433 info@dorayminerals.com.au anna@amncorporate.com About Doray Minerals Ltd Gold miner and explorer Doray Minerals Limited (ASX: DRM) listed on the ASX in February 2010, was one of stralia's best performing IPOs in 2010 and was named Gold Explorer of the Year by the Gold Mining Journal in December 2011. Doray has a strategic portfolio of gold exploration projects within Western stralia and South stralia and has recently commenced mining at the high-grade Andy Well Gold Project, north of Meekatharra. About the Andy Well Gold Project Doray s 100%-owned Andy Well Gold Project is located approximately 45km north of Meekatharra, in Western stralia s northern Murchison region. In March 2010, Doray announced the discovery of the very high-grade gold deposit, adjacent to the Great Northern Highway. Since announcing a maiden high-grade JORC-compliant gold Mineral Resource for the Wilber Lode in February 2011, the Company achieved a 90% increase to the Resource in December 2011 and a subsequent increase to the Indicated component in March 2012, which now totals 89% of the total resource. In June 2012, Doray announced the maiden high-grade open pit and underground Mining Reserve for the project and indications of a second high-grade quartz lode within the Judy Zone. During 2012, Doray completed a positive Bankable Feasibility Study for the project, made a formal decision to mine, increased its ownership of the project to 100%, secured a $55 million project finance facility from the Commonwealth Bank of stralia and completed an oversubscribed capital raising to fund all operating, exploration and corporate costs prior to first gold production. Open pit mining commenced in November 2012 and first gold production is scheduled for the September Quarter of 2013. Competent Person Statement The information in this announcement that relates to Mineral Resources is based on information compiled by Mark Cossom. Mr. Cossom is a Member of the stralasian Institute of Mining and Metallurgy. Mr. Cossom is a full time employee of Doray Minerals Ltd. Mr. Cossom has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the undertaking. This qualifies Mr. Cossom as a Competent Person as defined in the 2012 edition of the stralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Cossom consents to the inclusion of information in this announcement in the form and context in which it appears.
APPENDICES Table 1. All results from recent Judy RC drilling. Hole Easting Northing Dip/Azimuth From To Intercept ( g/t) MNRC056 667098 7097259 57/140 195 196 27.5 196 197 51.9 MNRC191 667386 7097554 60/135 119 120 1.7 120 121 28.6 MNRC192 667354 7097586 62/135 206 207 1.12 207 208 6.2 Comments MNRC193 667361 7097508 60/135 NSA MNRC194 667340 7097529 60/135 189 190 1.28 190 191 2.6 MNRC195 667312 7097558 60/135 251 252 1.7 MNRC196 667439 7097572 60/135 NSA MNRC197 667411 7097600 60/135 131 132 54.4 132 133 16.9 MNRC198 667383 7097628 61/135 NSA MNRC200 667050 7097112 62/135 NSA MNRC201 667068 7097165 65/135 202 203 26.3 203 204 17.0 MNRC202 667192 7097360 60/135 NSA MNRC203 667443 7097710 60/135 207 208 7.86 MNRC204 667336 7097462 60/135 NSA MNRC205 667312 7097486 60/135 NSA MNRC206 667283 7097515 60/135 250 251 2.16 251 252 1.94 MNRC207 667482 7097671 60/135 103 104 2.0 104 105 0.51 105 106 1.1 MNRC208 667510 7097642 60/135 33 34 5.96 MNRC209 667521 7097773 60/135 NSA MNRC210 667549 7097745 60/135 NSA MNRC211 667570 7097723 60/135 NSA MNRC212 667453 7097628 62/135 NSA 667425 MNRC213 7097656 62/135 NSA MNRC214 667382 7097486 60/135 NSA MNRC215 667036 7097054 63/135 NSA MNRC216 667043 7097119 71/135 NSA MNRC217 667136 7097308 68/135 218 219 3.6 219 220 10.4 220 221 8.2 221 222 5.0 NSA No significant Assay Received
Table 2. Significant results from Wilber RC drilling. Hole Easting Northing Dip/Azimuth From To Intercept ( Comments g/t) MNRC056* 667098 7097259 57/140 58 59 1.15 59 60 2.25 MNRC061* 667130 7097340 60/94 46 47 8.92 MNRC131* 667113 7097366 60/135 85 86 4.23 MNRC139* 667076 7097298 60/135 128 129 1.11 MNRC166* 667123 7097246 60/135 8 9 1.37 9 10 1.58 MNRC169* 667089 7097233 60/135 76 77 3.45 MNRC171* 667129 7097277 60/135 21 22 2.7 MNRC174* 667096 7097207 60/135 52 53 13.4 MNRC176* 667061 7097207 60/135 110 111 0.52 MNRC199 667072 7097091 60/135 53 54 26.2 54 55 5.5 MNRC217 667136 7097308 68/135 33 34 7.9 34 35 2.7 MNDD129* 667027 7097345 58/135 214.3 215.3 0.93 215.3 216.3 1.72 216.3 217.4 1.28 * represents holes not drilled in the latest Judy program Table 3. Andy Well Resource Inventory - March 2013 Indicated Inferred Total s 540,000 17.1 297,000 174,000 6.7 38,000 714,000 14.6 335,000 Wilber Shear Zone 117,000 0.8 3,000 117,000 0.8 3,000 225,000 9.7 70,000 168,000 6.7 36,000 393,000 8.4 106,000 TOTAL ANDY WELL RESOURCE 882,000 13.1 370,000 342,000 6.7 74,000 1,224,000 11.3 444,000 Note: No lower cutoff applied to Wilber and Judy lodes, 0.5g/t lower cutoff applied to Shear Zone. Upper cutoff applied as follows: Shear Zone - 3g/t, s 10g/t and 75g/t, Judy Lode 75g/t. Rounding errors may occur
Resource Estimation Summary The resource estimate is based on a compilation of 46 Reverse Circulation and 1 HQ-Diamond drillholes completed to date on the by Doray Minerals Ltd, as well as 1 hole previously drilled by stralasian Gold Mines NL. Drill spacing was on a nominal 50m x 25m spacing within Judy South and a 50m x 50m spacing within the Judy North zone. All Doray drilling has been geologically logged, with samples collected by either cone or riffle splitting of RC chips on 1m intervals down hole, or HQ-sized half core split samples for diamond drilling, with a minimum sample width of 0.5m and a maximum sample width of 1.5m. Samples were submitted to either Minanalytical or SGS Laboratories in Perth and analysed for by either: 25g fire assay digest with an AAS determination (Minanalytical); or a 30g fire assay with AAS determination (SGS). All assays were required to conform to Doray Minerals QA/QC guidelines as well as internal laboratory QA/QC guidelines. All holes have been located by Real Time Kinetic GPS on surface, as well as multi-shot reflex tool surveys down hole. One grade domain was interpreted from the geological and assay data received. The Judy Quartz Vein was interpreted based on logged intervals in drill holes, irrespective of assay grade. A minimum downhole length of 0.5m was interpreted, with a nominal average true width of intercepts estimated to be 1m. Additionally, geological domains were created for transported material, as well as oxide and transitional weathering domains. A geological domain was also created for the cross-cutting, late stage Proterozoic dolerite dyke, which was used to deplete the model as this dyke is interpreted to post-date, and thus stope-out mineralisation. All domains were interpreted in 3-dimensions utilising Surpac Software, and wire-framed into either solid 3dm s for grade domains, or dtm surfaces for transported and weathered domains. Statistical analysis, grade interpolation and block modelling were undertaken by Mr Mark Zammit of Cube Consulting, in consultation with Doray Minerals staff. domain data were extracted from the database and composited to length-weighted total intercept composites for the Quartz Vein domain. Data were statistically analysed for the selection of appropriate top cuts, with a 75g/t top-cut for the Judy Quartz Vein domain data. Geostatistical analysis of semi-variograms generated from the composite data was undertaken to provide both search neighbourhood as well as kriging parameters for grade interpolation. A block model was created for the, with a block size of 2m x 20m x 20m (x,y, z) selected based on Qualitative Kriging Neighbourhood Analysis to identify the optimal block size. Bulk density values were assigned to the model based on ore-zone and weathering domains. Bulk density values were generated by statistical analysis of down-hole Gamma probe data collected from 6 holes across the Wilber deposit, due to geological continuity between the Judy and Wilber lodes, with values collected every 10cm down hole. These Gamma data were also checked against several values obtained by water displacement method from across the fresh-rock domain, in order to validate the detailed data. was interpolated for the Judy Quartz Lode domain via 2-dimensional Ordinary Kriging of an accumulation variable incorporating mineralised vein horizontal width and cut intercept grade. Several check runs were completed utilising different top-cuts and estimation parameters as validation checks of the grade estimate. The model was also validated by visual inspection of both the block model fill against the raw assay data, as well as the generation and inspection of grade-tonnage curves, and composite vs. block grade data by both elevation and northings through the deposit. Model classification for both Indicated and Inferred (in accordance with the JORC Code 2012) was based on data density, as well as analysis of slope of regression block statistics throughout the model. Interpolation parameters were based on previous work completed for Andy Well (Wilber) due to the limited data for the Judy domain.