Kings Minerals NL: Mt. Philp Iron Prospect-Exploration Update
TORONTO, ONTARIO -- (Marketwire) -- 11/15/10 -- (ASX: KMN)(TSX VENTURE: KMN) -
Highlights
-- Rock chip sample grades from Zone 1 at Mt Philp average 53% iron
-- 3.7km strike length outcrop
-- No significant concentrations of deleterious elements present
-- Simple beneficiation processes to be evaluated for removal of silica in
order to assess market suitability of the product
The directors of Kings Minerals NL (ASX: KMN)(TSX VENTURE: KMN) are pleased to announce rock chip sample results from the Mt Philp Iron Prospect located in Queensland, Australia.
As outlined in the Company's latest quarterly report, Kings Minerals NL is focused primarily on developing the Cerro del Gallo gold/silver mining project in Mexico.
Concurrently, low capital-intensity regional exploration has continued across the Company's Australian project portfolio, including Mt Philp.
Analysis of rock chip samples taken from that work program has identified the potential for a significant iron ore discovery in the Mount Isa field.
The sampling covered a 3.7km strike length of haematite bearing outcrop, and revealed three zones classified by varying silica content. The rock chip sample results are summarised below in Table 1.
Table 1: Rock chip zone averages
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Zone 1 Zone 2 Zone 3
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Strike length (m) 1,580 780 1,340
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Iron (%) 53 46 29
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Silica (%) 24 33 58
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Phosphorus (%) 0.011 0.02 0.022
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Sulphur (%) 0.007 0.009 0.006
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Aluminium Oxide (%) 0.179 0.324 0.331
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Loss on Ignition (%) 0.10 0.10 0.12
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The removal of silica is typically not a complex process. Test work using conventional methods is planned to evaluate material from each of the three zones, with the aim of producing a premium grade iron pellet suitable for direct reduced iron production. Other contaminating elements are not present in concentrations that would require additional treatment.
If the preliminary beneficiation test work is satisfactory, a relatively low capital cost first stage drill programme will be considered, to establish an initial resource estimation.
Location
Mt Philp is located 8km northwest of Kings' Kalman Molybdenum-Rhenium-Copper-Gold Deposit and 57km southeast of Mount Isa.
The Mt Philp Iron Prospect occurs within EPM 14232 Trafalgar (100% Kings Minerals NL), which is located within 25km of the Mt. Isa - Townsville highway, rail and electricity supply infrastructure.
Figure 3: Current tenement coverage and prospect location. See link at end of release.
Rock Chip Sampling
Detailed geological mapping and rock chip sampling has been completed over the prospect.
Figure 2: Rock Chip Sample results from Mt Philp Iron Prospect. See link at end of release.
The prospect consists of a 50m high ridge of ironstone that strikes south-southwest. With movement south along the ridge the ironstone changes facies from massive haematite (Zone 1) through a transitional phase of interbedded massive haematite with banded siliceous haematite (Zone 2) into massive and banded siliceous haematites in Zone 3.
Rock chip samples were collected as contiguous 5m representative grab samples over visible outcrop on lines spaced at nominal 50m intervals. A total of 440 samples were collected and assayed by XRF methods.
The average width of the ironstone is 30m. Where previous drilling has intersected the haematite zone it has known dip continuity for 50m.
Individual iron grades vary from 18 to 63% and along the strike of the deposit the distance weighted average surface grades vary from 53% Fe in Zone 1 to 46%Fe in Zone 2 and 29%Fe in Zone 3.
Table 2: Rock Chip Line Averages by Zone. See link at end of release.
Table 3: Rock Chip Sample Averages by Line. See link at end of release.
The haematite is extremely pure with no significant contaminants and only silica as the primary gangue. A graph of average iron and silica grades is presented as Figure 1. See link at end of release. This graph highlights the inverse relationship of iron and silica and identifies Zone 1 as having potential for Direct Shipping Ore.
Quality Assurance/Quality Control
Exploration at Kings Minerals Mt/ Isa projects and prospects is supervised by Trevor Leahey, Exploration Manager, and a qualified person under NI 43-101. All technical information for the Company's projects and prospects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Rock chip samples are collected under the supervision of Company geologists in accordance with standard industry practice. Samples are dispatched via commercial transport to an ISO 9001:2000-accredited laboratory in Brisbane, Australia for analysis. Results are routinely examined by an independent geochemist to ensure laboratory performance meets required standards.
All assay results reported herein are for surface rock chip samples; assay results from subsequent drill core sampling may be higher, lower or similar to results obtained from surface samples.
Competent/Qualified Person
The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Skeet (as it relates to process related material), who is a Member of the Australasian Institute of Mining and Metallurgy and Mr Trevor Leahey , who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Skeet is the Chief Operations Officer of Kings Minerals NL and Mr Trevor Leahey is a consultant to Kings Minerals NL. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and 'qualified persons' as this term is defined in National Instrument 43-101. Mr Skeet and Mr Leahey consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
About Kings Minerals
Kings Minerals is a gold and metals exploration and development company. The Company is currently focused on developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico. The Company also maintains an active working focus on the Mt Isa exploration project, Queensland, Australia.
Additional information about the Company is available on the Company's website at www.kingsminerals.com and on SEDAR at www.sedar.com.
Figures 1, 2 and 3 together with Tables 2 and 3
Link: http://www.kingsminerals.com/?LinkServID=4D77A0A0-BF77-E1B7-4CBFDC62E4F9C809&showMeta=0
Forward-Looking Information
This news release contains certain 'forward-looking information' under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the results, timing and costs of the work program, plans to complete a resource estimate and results of test work to be completed. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Kings Minerals NL
Tony McDonald
Managing Director
+61 7 3252 0122
+61 7 3252 0166 (FAX)
Kings Minerals NL
John Skeet
Chief Operating Officer
+61 7 3252 0122
+61 7 3252 0166 (FAX)
Kings Minerals NL
Craig McPherson
Chief Financial Officer
+61 7 3252 0122
+61 7 3252 0166 (FAX)
admin@kingsminerals.com
www.kingsminerals.com