Pluton Resources Limited Provide Irvine Island Isthmus Diamond Drilling Assay Results and Update

13:35 AEST July 27, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Melbourne, Australia (ABN Newswire) - Pluton Resources Limited ('Pluton') (ASX: PLV) have received additional final assay results from the current Phase II diamond drilling program at the Isthmus Region on Irvine Island, Western Australia (E04/1172). Irvine Island is Pluton's flagship iron ore development project.


HIGHLIGHTS

- Significant assay results have been received for eight of eleven diamond drill holes collared in the western Isthmus Region.

- These assay results suggest potential for an increased total iron grade in the western Isthmus Region than those previously reported.

- The Isthmus Region is currently estimated to have a total Inferred Mineral Resource of 17 Mt @ 32% total iron in accordance with the JORC Code.

- Drilling has re-commenced on Hardstaff Peninsula, Irvine Island with the aim of extending the Probable Ore Reserve estimate and significantly increasing the initial eleven (11) year mine life defined in the Stage 1 valuation.


COMMENTS

Pluton Resources Managing Director, Tony Schoer said:

'These latest assay results are encouraging and may have a positive impact on the total overall iron grade for the western area of the Isthmus deposit when the next Mineral Resource estimation is completed'.

'The base case stage 1 valuation of open-cut mining operation on Irvine Island, with an initial mine life of 11 years, was modeled solely on the Indicated Mineral Resources defined at the southern end of the Hardstaff Peninsula and does not include any of the Mineral Resource defined at the Isthmus Region'.

'While exploration and assessment of the Isthmus deposit will continue, our current focus is on drilling and metallurgical test work on the Hardstaff Peninsula, with the aim of converting further Inferred Mineral Resources to the higher confidence Indicated Mineral Resource category. We expect that this will enable the Stage 1 Ore Reserve estimate to be expanded to include more of the Indicated Mineral Resource defined in the north of the Hardstaff Peninsula, thereby increasing the Ore Reserve base and mine life of the Project.'

Isthmus Region Assay Results

The initial Phase II diamond drilling program has been completed at the Isthmus Region.

A total of fifty-four holes at twenty-one sites have been completed for a total advance of approximately 6,608 metres. Diamond drilling has been completed for resource definition, metallurgical test work, hydrological and environmental purposes at the Isthmus Region.

Significant assay results have been received for eight of eleven recently completed diamond drill holes.

True thickness estimates have been included in the tables for all holes based on the geological interpretation contained in the latest Inferred Mineral Resource estimate for the Isthmus Region.

In a number of cases in the tables given below, the true thickness is reported at a greater width than the mineralised iron ore intersection. This is a direct result of some of the diamond drill holes being collared internal to the iron ore horizon.

A true thickness range has been reported for 11DDH083 as the drill hole has drilled down the limb of a fold structure. Based on the geological interpretation contained in the latest Inferred Mineral Resource, it is estimated that the true thickness of the iron ore mineralisation in the fold structure is in the range of 15-20m.

Three of the eleven diamond drill holes (11DDH073, 11DDH074 and 11DDH076) did not intersect significant zones of iron mineralisation greater than 40% iron across a minimum continuous interval of four metres. Drill holes 11DDH073 and 11DDH076 were completed as short depth, vertical environmental monitoring holes. Holes depths for these two holes were 42.60m and 40.70m respectively.

Yampi Member

As part of the on-going geological work necessary to further assess the high grade iron potential and assist in converting the initial Inferred Mineral Resource into higher confidence Mineral Resource categories, detailed surface mapping at the Isthmus Region commenced during the month. The results of this field work program will be used to design additional drill holes to further test the iron mineralisation developed at the Isthmus Region.

Commencement of additional diamond drilling is currently scheduled for Q4 2011 at the Isthmus Region.

Hardstaff Peninsula

Diamond drilling has recommenced at the Hardstaff Peninsula on drill hole 11DDH107 at site Y2-15.

Drilling is to be completed on a maximum of four drill sites within the zone of Inferred Mineral Resources located in the central Hardstaff Peninsula. Two diamond drill holes, 11DDH091 (resource definition) and 11DDH092 (environmental monitoring) have been completed within this zone. Drill core from both holes has been logged, cut and sampled and dispatched for assay.

At the completion of diamond drilling within this zone, it is expected that a proportion of the Inferred Mineral Resources will be converted to an Indicated Mineral Resource category following receipt of assay data, completion of resource modeling and further technical studies. Pluton expects this will enable the Stage 1 Ore Reserve estimate to be expanded to include more of the Indicated MineralResource defined in the north of the Hardstaff Peninsula, thereby increasing the Ore Reserve base and mine life of the Project.

The Hardstaff Peninsula is the proposed site of an initial 11 year mining operation producing 40 Mt of saleable concentrate generating revenues in excess of A$5.6 billion as defined in the Pre-Feasibility Study for Stage 1 (ASX announcement, 6th June 2011).

Phase 3

Diamond drilling has commenced at the Phase 3 area located to the north west of the Hardstaff Peninsula. The purpose of the drilling program is to drill a sufficient number of holes that may be used for environmental sampling and monitoring purposes.

To date, a total of six drill holes from a planned program total of twenty-one have been completed to date. Drilling is scheduled to be completed in the Phase 3 area by the end of August 2011.

For the complete Pluton Resources announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-358261.pdf


About Pluton Resources Limited:

Pluton Resources Limited (ASX: PLV) is a mineral exploration company focusing on iron ore in the Kimberley region of Western Australia, with additional copper, gold and silver projects located in North Western Tasmania. The company was listed in 2006 and is based in Melbourne, Australia. Pluton Resources has proven to innovate and develop new technologies that would otherwise restrict other companies.


Contact:

Mr. Tony Schoer
Managing Director and Chief Executive Officer
Pluton Resources Limited
Tel: +61-3-9820-3802
Mob: +61-411-232-711
Email: tschoer@plutonresources.com
www.plutonresources.com