Iron Glen JORC Report: significant silver deposits

RNS Number : 7993X

Strategic Minerals PLC

21 February 2012

 



For immediate release: 21 February 2012

Strategic Minerals Plc

("Strategic Minerals" or the "Company")

Iron Glen JORC Report: significant silver deposits reported

Strategic Minerals Plc (AIM:SML), the iron ore focused production and exploration company,  is pleased to announce that it has received an estimate of JORC compliant resources for magnetite and significant silver deposits on its Queensland Iron Glen Prospect, with an in situ value of approximately A$140million¹, from its independent technical consultants Terra Search Pty Limited. In addition, a silver lead zinc deposit, known as the Lead Belly Prospect, has been identified 2km north-west of the Iron Glen Pit region currently under investigation.

Highlights from the JORC Compliant Resources Statement are:

Ø Drill indicated resource at 15% cut-off confirmed by independent consultants as 1.77M tonnes @30.2% Iron (Fe);

Ø The indicated resource and adjacent inferred resource of 0.15 million tonnes at 19.6 % Fe results in a total resource of 1.92M tonnes @ 29.3% Iron (Fe), 0.10% Copper (Cu) and 10.3g/t Silver (Ag);

Ø Consultants have estimated through preliminary Davis Tube Testwork that Iron Glen contains an Inferred in ground resource of 630,000 tonnes of potential magnetite concentrate;

Ø In addition to the drill indicated resources referred to above an inferred resource of 2.9 million tonnes @ 13.1 g/t Ag occurs peripheral to the magnetite skarn using a Ag cut-off of 5 g/t Ag;

Ø Total Silver in-situ indicated and inferred resource estimate is 4.82 mt @ 12.0 g/t Ag (1.86M ounces);

Ø Applying current prices to these magnetite and silver resources results in an estimated in-situ value in the order of ~A$140M (this figure is to be used as a guide only -see note 1); and

Ø Separately from the magnetite skarn deposit at Iron Glen a silver lead zinc deposit has been identified 2km north-west along strike referred to as the Lead Belly Prospect.  

The above results relate to the area immediately around the old Iron Glen Pit area and extend approximately 450 metres from the southern end of the pit in a north-westerly direction.

The summary JORC Report will be posted on the Company web site www.strategicminerals.net 

CEO of Strategic Minerals, David Weidemier, said:

"The JORC compliant estimates for Iron Glen iron and silver assets add tangible assets to the Company's balance sheet which complement its Cobre Iron Ore project in New Mexico.  The  additional copper results demonstrate the polymetallic nature of these skarn deposits and the scope for additional discoveries at Iron Glen."

The Company is planning its 2012 field programme which will include commencing investigations into the feasibility of establishing a mine at Iron Glen and the potential of the other targets on these tenements as a potential further sources of magnetite, silver and base metals which could add to the commercial viability of such a project.

The Iron Glen Prospect is located approximately 40km south of the city of Townsville in north Queensland.  The property is in close proximity to existing road, rail, port, water and electrical infrastructure.

Table 1 - Summary of JORC Compliant Resource Estimate

IRON GLEN MAGNETITE SKARN RESOURCE ESTIMATE
	Million Tonnes	Fe %	Ag g/t	Cu %
Magnetite Skarn (Cut-off 15%)
INDICATED	1.77	30.2	11.0	0.11
INFERRED	0.15	19.6	2.7	0.04
TOTAL	1.92	29.3	10.3	0.1
Magnetite Rock  (Cut-off 35%)	NB. Magnetite Rock Resource internal to Magnetite skarn
INDICATED	0.52	42.2	14.2	0.15
Silver Resources - Global
Additional Ag (5g/t cut-off
INFERRED	2.90		13.1
TOTAL	4.82		12.0

^1.            A price of A$120 per tonne for magnetite concentrate and A$30 per ounce for silver has been used in order to estimate an approximate in-situ value. This figure should only be used as a guide, in terms of providing an order of magnitude estimate of in situ value. The resource would need to be subjected to rigorous financial analysis with application of mining and metallurgical parameters and costings before a more definitive statement of in-situ value could be made.

COMPETENT PERSON STATEMENT

The information in this report that relates to exploration results and resource estimates has been reviewed by and is based on information compiled by Dr Simon D. Beams, a full time employee of Terra Search Pty Ltd, geological consultants employed by Iron Glen Pty Ltd.

Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689).  Dr Beams has sufficient relevant experience in respect of the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 Edition of the AusIMM's "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Dr Beams consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

For further information:

Company
Strategic Minerals plc	[phone]
Alex Borrelli	[phone]
Nominated Adviser & Joint Broker
Allenby Capital Limited
Jeremy Porter / James Reeve	[phone]
Joint Broker
Daniel Stewart & Company Plc
Sean Lunn / David Hart	[phone]
Public Relations
GTH Communications Limited
Toby Hall / Suzanne Johnson Walsh	[phone]

About Strategic Minerals

Strategic Minerals plc (AIM: SML) is developing portfolio of projects that provide near term production along with those that potentially offer longer-term capital gains. Strategic Minerals currently holds iron ore stockpile assets in North America and exploration properties in Australia.

www.strategicminerals.net.

 

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