Strategic Minerals plc (AIM: SML): Iron Glen Update

Jul 15, 2011, 02:30 ET from Strategic Minerals plc

TOWNSVILLE, Australia, July 15, 2011 /PRNewswire/ -- Strategic Minerals plc (AIM: SML) today announces that the 2011 drilling programme is advancing with 10 holes completed (9 Reverse Circulation & 1 Diamond Drill) and 2 holes nearing completion.  A further 20 holes are scheduled over a 2 kilometer area of interest over the next 6 weeks.

In total, the Company has drilled 1,563 metres, of which, 3 drill holes were geotechnical holes used to confirm the geological structure of the area under study rather than being directly related to resource definition.

All Reverse Circulation holes have been sampled and sent to ALS Laboratories (Australian Libratory Services) for assay. All of these holes have been drilled within the vicinity of the Iron Glen Pit, which was the subject of the October 2010 drilling programme.

Prior to sending Reverse Circulation samples for assay we were able to conduct a preliminary analysis using a handheld Niton Model XL3t 950 GOLDD+ analyser. We were also able to use this analyser on the core obtained from the diamond drilling.

In summary, the results to date using the Niton are:

  • Magnetite – 2 Reverse Circulation holes intersected magnetite bands in excess of 25 metres (downhole) with an average Fe grade of 27% and a high of 55% that equates to approximately to 34% and 69% grade magnetite
  • Copper – consistent with peaks in excess of 5%
  • Zinc – consistent with peaks in excess of 5.00%
  • Silver – consistency through all holes sampled with an average grade of 3.8 ozs/tonne and highs in excess of 9 ozs/tonne
  • Gold – dispersed, indicating that it may be present throughout the mineralised zone. Readings varied with several holes showing an average greater than 1 oz/tonne. Some readings were considerable higher. However, the high readings came from an analysis of core material and therefore may not be indicative of the level of mineralisation throughout the entire sample range

Please refer to the note in Notes to Editors section at the bottom of this release when considering the Niton results. It is an important exploration tool; however, a number of laboratory analyses are required to determine the composition of the geological and mineralogical characteristics of the deposit to meet industry standards. The Company expects to receive and compile additional laboratory results over the coming weeks and will update shareholders as more information becomes available.

Pat Griffiths, CEO of Strategic Minerals, commented:

"Whilst these results can only be considered preliminary, they are consistent with our expectations for the area covered by the work completed to date. The consistency of the silver value is encouraging as is the presence of gold. The commercial value of both can only be properly assessed when our geologists have analysed the full assay results, combined with a subsequent assessment of the mineability of the deposit and associated factors. We look forward to updating shareholders on further results and analysis in the coming months"

About Strategic Minerals plc

Strategic Minerals is a Queensland-based company incorporated in the UK on 16 November 2010.  The Company's wholly owned subsidiary, Iron Glen Pty Ltd, has title to the Iron Glen Tenement that is located approximately 40 kilometers southwest of Townsville, Queensland. The Tenement covers an area of 2,100 hectares and lies 10kms from existing rail and road infrastructure that links into Townville's deep water port which has all year round bulk loading facilities.

*Note: The Niton Model XL3t 950 GOLDD+ is a top-of-the-line XRF Analyzer that is designed for use in mineral exploration and mining applications. This model offers low-detection limits (similar to those produced by a laboratory) and straight forward calibration techniques, and is used to determine the concentration of a range of elements occurring in the Iron Glen core  and drilling samples, including gold, silver, and other elements. The results reported depend on what minerals or mass of minerals are being scanned over a 3 mm area on the surface of a meter-length of core sample or of finely crushed drilling samples. The results should be considered as a spot-specific indication of elements in cores or samples produced by drilling. It should be noted that the individual results are only part of a larger group of analyses that will be necessary to indicate overall ore grade of the deposit as a whole. The XRF Analyzer results do guide exploration in outlining the mineralised zone of interest consisting of high-grade mineralisation, as indicated by some of the reported samples to date, but the zone may also contain much lower grades of mineralisation. To correctly determine the ore grade at Iron Glen, bulk sampling and coring followed by laboratory analysis of hundreds of samples is in progress and will be required to assess the grade and thickness of the mineralised zone. (Comments provided July 11, 2011 by I2M Associates, LLC, Michael D. Campbell, P.G., P.H., Vice President and Chief Geologist/Hydrogeologist, Houston, and M. David Campbell, P.G., Senior Geologist/Hydrogeologist, Townsville, Independent Advisors to Strategic Minerals PLC management).

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SOURCE Strategic Minerals plc