Central Iron Ore Ltd.: South Darlot Gold Project-Emperor Structure Exploration Target of 270,000 to 1,500,000 Oz of Au
January 22 2013 - 7:00AM
Marketwired Canada
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Central Iron Ore Ltd. (TSX VENTURE:CIO) ("CIO" or "the Company") is pleased to
announce an exploration target of 1.7 to 4.1 million tonnes at 5.0g/t to 11.5g/t
Au (270,000 to 1,500,000 Oz of Au) on the Emperor structure at its South Darlot
Gold Project. The exploration target was interpreted as a linear structure from
historical gold workings, gold occurrences within historical drill holes,
aeromagnetic and gravity geophysics as well as results from the company's recent
drilling program.
Mr. Brett Hodgins, President and CEO, said, "We are delighted with the results
from the recent drilling program and exploration target at our South Darlot Gold
Project. The Emperor structure is shaping up as a very important prospect for
CIO. The high grade gold results, combined with the prospect being on a granted
mining lease, allow CIO to rapidly add value to this asset through commencing an
investigation of production scenarios. I believe this to be an important moment
for CIO with high grade gold discovered close to surface, the identification of
a structure which can be extended along strike and the first stage of the
Barrick farm-in and joint venture ('JV') completed. The recent drilling program
focused only on the two of 31 gold targets identified within the South Darlot
Gold Project area. These two targets are located within the Barrick JV area. 22
untested targets remain within the Barrick JV area and 7 untested targets remain
on the 320km2 of 100-per-cent-CIO-owned tenements. This provides CIO with the
platform to grow our gold resources rapidly."
The estimates of exploration target sizes mentioned in this announcement should
not be misunderstood or misconstrued as estimates of mineral resources as
defined in National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The potential quantity and grade of the exploration
targets are conceptual in nature and there has been insufficient exploration to
define a mineral resource and it is uncertain if further exploration will result
in the determination of a mineral resource.
HIGHLIGHTS
South Darlot Gold Project
-- Initial exploration target on the Emperor structure has been estimated
to be between 270,000 to 1,500,000 oz of Au by 1.7 to 4.1 million tonnes
at an expected grade of 5.0g/t Au to 11.5g/t Au.
-- The Company has completed the stage 1 farm-in spend to earn a 51%
interest in the Barrick JV tenements. CIO can earn an additional 19%
interest (equal to a total interest of 70%) by spending an additional
AUD$250,000.
-- Completed Stage 1 Drilling Program with significant gold intercepts
being:
-- 4m at 50.3 g/t Au including 1m at 158 g/t Au from 43m.
-- 7m at 27.1g/t Au including 1m at 159 g/t Au from 46m.
-- 4m at 23.2 g/t Au including 1m at 81.8 g/t Au from 28m.
Emperor Structure
The Company's recent drilling program confirmed a west-north-west (WNW) trending
shear zone named the Emperor Structure. It has been interpreted from a linear
trend of historical gold workings, gold occurrences within drill holes, as well
as observations of the diamond drill core and RC chips from the recent drilling
at the Endeavour Prospect. The interpretation generated from aeromagnetic and
gravity geophysics supports the view that the structure extends further to the
WNW ultimately causing a greater than 100m displacement of stratigraphy. This
gives the Structure a 2.5km strike length, a direct association with gold
endowment and a favourable geological setting to host significant gold
accumulation.
To view Figure 1 - South Darlot Gold Prospects, please click the link:
http://media3.marketwire.com/docs/cio122-F1.pdf.
Currently, vein-hosted gold mineralisation has been modelled at the A1 Prospect,
Mermaid Prospect and the Endeavour Prospect. Potential exists to explore for
extensions of this structure to the ESE as well as across strike.
The Endeavour Prospect is on the southern extent of the Emperor structure and
will be the focus on future drilling programs.
Emperor Structure Exploration Target
An initial exploration target on the Emperor Structure has been estimated to be
between 270,000 and 1,500,000 oz of Au by 1.7 to 4.1 million tonnes at an
expected grade of 5.0g/t Au to 11.5g/t Au (270,000 to 1,500,000 Oz of Au).
The exploration target for the Emperor Structure has been estimated based on a
number of assumptions and limitations which include, among other things:
-- The strike length of the structure is 1,400m.
-- The geometry of the Structure remains constant over their entire length.
-- The model depth extent has been fixed to 150 metres (200m down dip
extent).
-- The average true width is 3.9 metres.
-- 100% recovery and no dilution.
-- The specific gravity of the material is 2.51t/m3.
-- The grade range reflects the average gold concentrations utilising
suitable gold top cuts.
-- Tonnage range is +20% and -50%.
-- It does not take into account the depth to top or effect of dip of the
models and how this may impact potential mining viability.
To view Figure 2 - Long Section of the Emperor Structure, please click the link:
http://media3.marketwire.com/docs/cio122-F2.pdf.
The estimates of exploration target sizes mentioned in this announcement should
not be misunderstood or misconstrued as estimates of mineral resources as
defined in National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The potential quantity and grade of the exploration
targets are conceptual in nature and there has been insufficient exploration to
define a mineral resource and it is uncertain if further exploration will result
in the determination of a mineral resource.
SOUTH DARLOT GOLD PROJECT (Western Australia)
The South Darlot Gold Project area is approximately 320km northwest of
Kalgoorlie and includes:
-- The British King Mine which is 100% owned by the Company and NI 43-101
compliant. The British King Mine is 5km southwest of Barrick Gold
Corporation Limited's Darlot Mine. The British King Mine is currently
under care and maintenance.
-- 100% CIO owned tenement package, covering 324km2.
-- The Barrick JV tenements, in which CIO can earn an interest of up to
70%.
To view Figure 3 - South Darlot Gold Project, please click the link:
http://media3.marketwire.com/docs/cio122-F3.pdf.
100% CIO Owned South Darlot Gold Tenements
The Company's current 100% owned South Darlot Gold Project tenement package
covers 324km2.
----------------------------------------------------------------------------
Project Tenement Status Area (km2)
----------------------------------------------------------------------------
South Darlot E37/882 Granted 141
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South Darlot E37/1054 Granted 33
----------------------------------------------------------------------------
South Darlot E37/1085 Granted 24
----------------------------------------------------------------------------
South Darlot E37/1086 Granted 3
----------------------------------------------------------------------------
South Darlot E37/1106 Granted 123
----------------------------------------------------------------------------
British King M37/30 Granted 0.1
----------------------------------------------------------------------------
British King P37/7026 Granted 0.1
----------------------------------------------------------------------------
For the South Darlot Gold Project, the Company's strategy and objective will be
to evaluate the gold prospectivity of the region, generate targets, expand the
tenement position and acquire all access approvals. The Company currently has 7
prospective targets identified on its 100% owned tenements.
Barrick Joint Venture Tenements
The Barrick JV tenements are situated southwest of Barrick's Darlot gold mine
and are contiguous with CIO's current holdings in the area which includes the
British King Mine, which is 100% owned by CIO and which is NI 43-101 compliant.
The tenements covered by the Barrick JV are detailed below.
----------------------------------------------------------------------------
Project Tenement Status Area (ha)
----------------------------------------------------------------------------
Barrick JV M37/421 Granted 381
----------------------------------------------------------------------------
Barrick JV M37/552 Granted 200
----------------------------------------------------------------------------
Barrick JV M37/631 Granted 776
----------------------------------------------------------------------------
Barrick JV M37/632 Granted 595
----------------------------------------------------------------------------
Barrick JV M37/709 Granted 98
----------------------------------------------------------------------------
Barrick JV M37/1045 Granted 90
----------------------------------------------------------------------------
Barrick JV P37/7364 Granted 197
----------------------------------------------------------------------------
Barrick JV P37/7365 Granted 200
----------------------------------------------------------------------------
Barrick JV P37/7366 Granted 113
----------------------------------------------------------------------------
Barrick JV P37/7367 Granted 45
----------------------------------------------------------------------------
For the Barrick JV tenements, CIO's strategy and objective will be to evaluate
the gold prospectivity and deliver on target generation and access. The Company
currently has 24 targets identified on the Barrick JV tenements. CIO has
prioritised the exploration on the Emperor Structure with focus on the Endeavour
Prospect.
The Company has now earned a 51% interest in the Barrick JV tenements. CIO can
earn an additional 19% interest (equal to a total interest of 70%) in those
tenements by spending an additional AUD$250,000.
SUMMARY
The Emperor Exploration target is located on a granted mining lease that is the
subject of the Barrick JV. The importance of the status of this being a granted
mining lease should not be underestimated in a development context as it gives
CIO a significant cost and time advantage of the order of 18 to 24 months.
The next stage of exploration is planned to convert the Endeavour Prospect which
is on the southern section of the Emperor exploration target into a mineral
resource. This drilling is planned for the next drilling season, being Q2 2013.
The focus of the drilling is to provide a platform to allow the project to move
towards a short term production scenario.
QUALIFIED PERSON
Mr Darryl Mapleson who is a Fellow of Australasian Institute of Mining and
Metallurgy has compiled the information within this report relating to
mineralisation and the exploration target. Mr Mapleson has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration
and to the activity currently being undertaken to qualify as a Competent Person
as defined in National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
On behalf of the Board of Directors
CENTRAL IRON ORE LTD.
Brett Hodgins, President/CEO
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of
Canadian securities laws. Although the Company believes that such information is
reasonable, it can give no assurance that such expectations will prove to be
correct. Forward-looking information is typically identified by words such as:
believe, expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future events. The
Company cautions investors that any forward-looking information provided by the
Company is not a guarantee of future results or performance, and that actual
results may differ materially from those in forward-looking information as a
result of various factors, including, but not limited to, the state of the
financial markets for the Company's equity securities, the state of the market
for gold or iron ore or other minerals that may be produced generally, recent
market volatility; variations in the nature, quality and quantity of any mineral
deposits that may be located, the Company's ability to obtain any necessary
permits, consents or authorizations required for its activities, to raise the
necessary capital or to be fully able to implement its business strategies and
other risks associated with the exploration and development of mineral
properties. The reader is referred to the Company's disclosure documents for a
more complete discussion of such risk factors and their potential effects,
copies of which may be accessed through the Company's page on SEDAR at
www.sedar.com.
ABN: 32 072 871 133
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor and Media Inquiries:
Capital Street Group
Direct: (604) 988-8186 or TOLL Free IR Line: 1-888-684-1183
info@capitalstreetgroup.com
www.centralironorelimited.com
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