W Resources PLC Portalegre drilling update (8825P)

TIDMWRES

RNS Number : 8825P

W Resources PLC

31 October 2012

W Resources Plc

("W" or the "Company")

Portalegre Strikes Gold Grades at 15gram Per Tonne Over Three Metres

W Resources Plc (AIM:WRES), formerly Caspian Holdings Plc, a tungsten and gold exploration and development company with assets in Spain and Portugal, announces continued exploration progress at its 100% owned Portalegre project, which comprises two adjacent gold exploration licenses (São Martinho and Crato-Assumar-Arronches) and covers an area of approximately 500km(2) located 200km east of Lisbon.

To date a total of 17 holes for 1,480.70m have been drilled in the reverse circulation drilling programme with assay results from 14 holes received.

The reverse circulation drilling results are positive as demonstrated by the following significant intersections:

 
  COLLAR      FROM       TO   INTERVAL      Au 
                 m        m          m     g/t 
---------  -------  -------  ---------  ------ 
 SMRC016     26.00    28.00       2.00    1.11 
---------  -------  -------  ---------  ------ 
 SMRC016     40.00    44.00       4.00    1.75 
---------  -------  -------  ---------  ------ 
                                                 (including 6m @ 3.04 
                                                  g/t Au from 2.00m & 4m 
 SMRC019      2.00    32.00      30.00    1.07    @ 1.68 g/t Au from 28.00m) 
---------  -------  -------  ---------  ------ 
 SMRC020    102.00   104.00       2.00    1.14 
---------  -------  -------  ---------  ------ 
 SMRC021     26.00    32.00       6.00    1.00 
---------  -------  -------  ---------  ------ 
 SMRC023      9.00    12.00       3.00    1.14 
---------  -------  -------  ---------  ------ 
                                                 (including 1m @ 5.11 
 SMRC024      0.00     8.00       8.00    1.22    g/t Au from 0.00m) 
---------  -------  -------  ---------  ------ 
 SMRC025      7.00     8.00       1.00    1.07 
---------  -------  -------  ---------  ------ 
 SMRC025     34.00    35.00       1.00    1.15 
---------  -------  -------  ---------  ------ 
                                                 (including 1m @ 44.90 
 SMRC025     52.00    55.00       3.00   15.59    g/t Au from 52.00m) 
---------  -------  -------  ---------  ------ 
 SMRC030     15.00    16.00       1.00    1.48 
---------  -------  -------  ---------  ------ 
 SMRC030     31.00    32.00       1.00    1.69 
---------  -------  -------  ---------  ------

True widths of intersections remain to be determined as exploration and interpretation are at a relatively early stage

The drilling results are intersecting at shallow depth gold grades above 1g/tonne with higher grade intersections in holes SMRC019, SMRC024 and a very high grade intersection in hole SMRC025 of 15grams/tonne including 1metre at 44.9 grams per tonne.

Commenting on the results Chairman, Michael Masterman said: "This is a great set of assay results with three higher grade intersections. Consistent grades above 1g/t indicate potential for a open pit deposit close to surface. Drilling will continue."

A detailed map of the Portalegre site including the 17 drill hole locations can be found on the Company's website at http://www.wresources.co.uk/projects/portalegre/

In other developments, as announced in February 2012, W has extended its exclusive option on acquisition of the La Parrilla mine until August 2013 though payment of EUR100,000 in February and a second payment of EUR100,000 made in October 2012. Drilling to define an increased JORC compliant resource has recommenced.

Enquiries:

 
W Resources Plc               Grant Thornton Corporate Finance 
                               - Nomad 
Michael Masterman             Gerry Beaney / Melanie Frean 
                               / Jen Clarke 
T: +44 (0) 20 7193 7463       T: +44 (0) 20 7383 5100 
www.wresources.co.uk 
 
Simple Investments - Broker   Gable Communications 
Andy Thacker / Nick Emerson   Justine James 
T: +44 (0) 1483 413500        T: +44 (0) 20 7193 7463 
www.simple-investments.co.uk  M: +44 (0) 7525 324431

About Portalegre

Following the acquisition of AIO and its subsidiary IRP (which was approved by shareholders at the 22 June 2012 Annual General Meeting), Caspian owns a licence for the exploration of the São Martinho gold prospect near the town of Portalegre (Northern Alentejo), covering an area of 101.7 km(2), and located around 200 km East of Lisbon.

Numerous small roads and tracks provide good access within the project area. An extended drilling programme to further develop the topographical maps started on 6 February 2012.

On 23 March 2012, IRP was awarded an additional exploration area ("Crato-Assumar-Arronches area"), adjacent to the original São Martinho area - this has an initial period of 2 years plus 3 annual extensions (for a total of 5 years) and covers an area of 392.8 km(2).

Sampling, Assaying and Quality Assurance / Quality Control (QA/QC) Measures

Drill sample intervals are reported as metres (m) down hole. True widths of the mineralized intersections have not been determined at this time. Sampling (1/8 of the drill material) is performed at the drill site and all drill rejects (7/8 of the drill material) are transported by the Company personnel from drill site to a nearby secure storage facility for logging, by an experienced geologist.

All the samples are sent by courier or transported by the Company personnel for preparation to the ALS Minerals facility in Seville (Spain). The resulting pulps are shipped by ALS to their laboratory in Romania for gold assay using the Au-AA25 method (Au by fire assay and AAS, 30g nominal sample weight).The detection range for this method is 0.01-100 ppm. Samples exceeding the upper detection limit are re- assayed by the method Au-GRA21 (Au by fire assay and gravimetric finish, 30g nominal sample weight). The detection range for this method is 0.05-1000 ppm. Samples with Au values over 0.02 ppm, are re-analysed using the ME-MS61 method (48 elements by four-acid, ICP-MS and ICP-AES).

Reference samples (blanks and certified standards) are routinely inserted by the Company geologist into the drill sample stream on a regular basis as quality control measure in addition to the laboratory's own internal QA/QC standards and duplicates.

Technical information in this report has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, who is a "qualified person" in respect of the AIM Rules for Companies with over 37 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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