Kimberley Metals Limited (ASX:KBL) Report High Grade Gold/Copper Intersection at Mineral Hill Mine

Sydney, Australia (ABN Newswire) - Kimberley Metals Limited (ASX:KBL) ('Kimberley Metals' or the 'Company') announced today results of the third diamond drill hole in the drilling program underway between the Eastern Ore Zone (EOZ) and Southern Ore Zone (SOZ) at the Company's Mineral Hill Mine. These results confirm Mineral Hill's previous status as a precious metal producer.

Assay results received to date for hole KMHDD012 include:

- 5.4 metre at 2.5% Cu & 4.4g/t Au

Incl : 1.3 metre at 4.9% Cu & 12.5g/t Au

These results confirm the existence of the high grade Cu-Au structure (ESOZ) previous identified by historical drilling. The mineralised structure has a strike length of more than 350m, extends for over 150m down dip, and has true widths ranging from 4 to 10m. This structure is parallel and adjacent to existing underground infrastructure and provides an opportunity to add additional tonnes to the Mineral Hill production profile. Narrow mineralised veins parallel to the main interval exist in the hanging and footwall position, indicating a total mineralised envelope width of plus 200m. Significant alteration coincident with this zone indicates potential for a larger feeder system at depth.

Mineralisation is open along strike and both up/down dip.

The Au-Cu results represent a similar style of mineralisation to the previously mined high grade Au-Cu EOZ deposit directly along strike to the north and the SOZ to the south. The occurrence of this style of mineralisation demonstrates the prospectivity of the EOZ/Parkers Hill/SOZ structural corridor.

The current drilling program is designed to provide detailed geological, geotechnical and metallurgical data on the deposit, and increase the understanding of structural controls on mineralisation for a resource upgrade currently in progress and due for release in the September quarter.

For the complete Kimberley Metals Limited announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-KBL-552056.pdf

About Kimberley Metals Limited:

Kimberley Metals Limited (ASX:KBL) became an independent entity in May 2008 when the shareholders of CBH Resources Limited agreed to the distribution of its 100% shareholding in Kimberley to CBH shareholders and was listed on ASX in February 2010. Kimberley’s aim is to quickly become an established precious and base metal producer and has assembled a balanced portfolio of assets to achieve this goal.

The Mineral Hill Mine is located in the northern part of the Lachlan Fold Belt in central-western New South Wales. Base metal mineralisation was discovered in the Mineral Hill area in 1908, with limited mining and prospecting occurring until the 1950s. Modern mining operations at Mineral Hill Mine were commenced in 1989 by Triako which operated a 200,000 tpa concentrator/CIL plant producing gold in copper concentrate and gold bullion. Mining ceased in late 2005 after producing in excess of 360,000 ounces of gold from at least five different ore zones. Kimberley has a substantial, wholly-owned, tenement holding at Mineral Hill, totalling 49 km2.

Since establishment, Kimberley has focused its efforts on identifying sufficient resources to support a re-start of operations at Mineral Hill. Exploration work to date has resulted in the discovery of high grade gold mineralisation at Pearse plus the evaluation and upgrade of the Parkers Hill Cu-Pb-Zn-Ag resource. Many additional near mine exploration targets with the potential to provide ore feed to the Mineral Hill process plant have been identified.

The Company (75%) and Henan Yuguang Gold & Lead Co. Ltd (HYG&L) (25%) own the Sorby Hills silver-lead-zinc deposit in the Kimberley region of Western Australia, which is one of the world’s largest near surface undeveloped lead deposits, close to port infrastructure and a short distance from Asian markets. Sorby Hills was discovered in 1971 and consists of 13 separate but adjacent carbonate hosted, near surface lead-silver-zinc deposits.

Source:

Kimberley Metals Limited

Contact:

Jim Wall
Executive Chairman
Kimberley Metals Limited
Tel:  61-2-9927-2005

Stuart Mathews
Chief Operating Officer
Kimberley Metals Limited
Telephone:  61-2-9927-2003

http://www.kimberleymetals.com.au