Central Iron Ore Ltd.: Drill results of 1.6m at 124.4g/t Au at South Darlot Gold Project

VANCOUVER, June 10, 2020 - Central Iron Ore Ltd. (CIO – TSX.V) (“CIO” or “the Company”) is pleased to announce that significant gold intercepts have been intersected through the Company’s latest drilling program at the Endeavour Prospect at its South Darlot Gold Project. The results from the 20 hole drill program, which included 17 reverse circulation (RC) and 3 diamond core holes, include a suite of narrow vein, high gold grades of up to 124.4 grams per tonne (g/t) which supports historical and earlier work conducted on the prospect.

Highlights

Significant gold intercepts

• ENDD20-002: 1.6m (1.28m true width) at 124.4 g/t Au from 37.3m.

• ENRC20-009: 2m (1.6m true width) at 88.08 g/t Au from 27m.

• ENRC20-010: 2m (1.6m true width) at 77 g/t Au from 37m.

• ENRC20-011: 2m (1.6m true width) at 74.5 g/t Au from 42m.

• ENDD20-003: 1.6m (1.28m true width) at 38.2 g/t Au from 53.2m.

• ENRC20-013: 2m (1.6m true width) at 36.4 g/t Au from 47m.

Endeavour Prospect

• 17 reverse circulation drill holes for 706 metres.

• 3 diamond core drill holes for 141.8 metres.
  

SOUTH DARLOT GOLD PROJECT (Western Australia)

The Company’s South Darlot Gold Project area is located approximately 320km northwest of Kalgoorlie in Western Australia and includes:

• The British King Mine which is 49% owned by the Company. The British King Mine is 5km southwest of Red 5 Limited’s Darlot Mine. The British King Mine is currently in care and maintenance.
• A number of tenements which are subject to a joint venture with a subsidiary of Red 5 Limited (“Red 5”), details of which are set out below.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/64e1fd5d-b892-41d6-ad88-6f17c56859d0

Red 5 JV Project (Formerly Barrick Joint Venture Project)

These tenements are situated southwest of Red 5’s Darlot gold mine. The Red 5 JV Project Tenements are detailed below.

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c8c5d93a-badd-42f0-8cb8-e345a9c584a8

Dispute

As at the date of this release the Company is of the view was that it has earned in excess of a 70% interest in the Red 5 JV Project Tenements having incurred the required expenditure. This is disputed by Red 5 together with other aspects of the operation of the Red 5 JV. The parties are in discussions to resolve this matter.

Endeavour Prospect

The drilling at the Endeavour Prospect included 20 holes for resource definition. A total 17 RC holes for 706 metres and 3 diamond core holes for 141.8 metres for a total of 757.8 metres were drilled at the Endeavour Prospect as part of this program. Twelve holes drilled into the Endeavour Prospect returned significant assays hosted in a planar, laminated quartz vein. The width of the vein ranges from 0.7 to 4.2 metres and has an average width of 1.9 metres. The strike length of the mineralisation is approximately 40 metres and is open down plunge and to the west.

The mineralisation is characterised by a planar, laminated quartz vein with minor sulphides including pyrite, galena and traces of chalcopyrite. Enveloping this is stringer mineralisation over 1 – 3 metres with grades between 0.5 – 2.0 g/t Au. This laminated vein and halo mineralisation is hosted in a highly weathered felsic volcanic. Preliminary petrology suggests the gold is secondary in nature and present as small blebs of electrum or particulate grains associated with pyrite.

Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f700326d-37c5-4f78-86b0-b8c3965760c5

Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f1e61bc8-a74c-4fcd-b217-56433ee410c0

Figure 5 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce2e818f-8420-4ac4-9f06-5fa27fdec77d

Future drilling programs at the Endeavour Prospect

A program of RC drilling comprising 20 holes for 1,024 metres has been designed at the Endeavour Prospect, targeting the laminated vein both down plunge and to the west. The purpose of the drilling is to extend the mineralisation which is open to the west and trace the down plunge depths of this high grade quartz lode.

Figure 6 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fafb9134-801b-4831-8c9c-10d45264497a

Summary of Drill Results

Quality Control and Analytical Procedures

The Company has a rigorous QA/QC program in place to ensure best practices in sampling and analysis of drill samples. Commercial standards, blanks and duplicates were inserted in every batch of samples submitted for analysis in accordance with industry practice. Gold analysis was carried out by ALS in Kalgoorlie, Western Australia, with a 50 g charge by Fire Assay with Atomic Absorption finish method. ALS are certified and registered in each region with global application of standard procedures and audits to maintain standard practice throughout the laboratory network.

Qualified Person

Mr Darryl Mapleson who is a Fellow of Australasian Institute of Mining and Metallurgy has compiled the information within this report relating to mineralisation. Mr Mapleson has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Summary

The drilling program was carried out on mining lease 37/631. The importance of the status of this being a granted mining lease should not be underestimated in a development context as it gives CIO a significant cost and time advantage of the order of 18 to 24 months.

Mr Brett Hodgins, President and CEO, said, “We are encouraged with the results from the recent drilling program at our South Darlot Gold Project. Endeavour is shaping up as a very important prospect for CIO. The high grade gold results, combined with the prospect being on a granted mining lease, allow CIO to add value to this asset.

I believe this to be an important moment for CIO with high grade gold discovered close to surface, the identification of a structure which can be extended along strike. This combined with our 24 targets provides CIO with the platform to grow our gold resources.”

On behalf of the Board of Directors
Central Iron Ore Ltd.

“Brett Hodgins”
____________________________
Brett Hodgins, President/CEO

For further information, please contact:
www.centralironorelimited.com

Investor and Media Inquiries:
Direct: +61 2 9397 7555

Email: info@centralironore.com

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THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the market for iron ore or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's disclosure documents for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company’s page on SEDAR at www.sedar.com.

ABN: 32 072 871 133