Black Iron Concludes Twin Hole Program Intersecting Iron Grades Exceeding 32%

July 21, 2011

Investor Cubed is pleased to forward a news release issued by Black Iron (BKI - TSX) highlighting the following: 

• Completion of its confirmation ("twin hole") and metallurgical diamond drill program at its Shymanivske Iron Ore Project in Ukraine.
  • Assay results received for three additional twin holes show thick iron bands with grades exceeding 32%.
  • The assay results received thus far align very well with the historical drill hole data for the Project.
  •  Additional assay results are expected over the coming six to eight weeks.
• The Company now has sufficient drill core to complete its metallurgical test work program which has already been initiated. 



"We are now working closely with our laboratories Mekhanobrchermet in Ukraine and SGS Lakefield in Canada to complete the required metallurgical test work with input from our consultants BBA Inc. and Hatch Ltd., as well as the Ukrainian mining design group Yuzhgiproruda, to deliver the preliminary economic assessment ("PEA") for Shymanivske. Our project development timeline remains on schedule and we anticipate being able to deliver the PEA in the fourth quarter of 2011."

George Mover, Chief Operating Officer of Black Iron

 

 

If you have any questions or would like to speak with Black Iron's management team, please contact Investor Cubed at 647-258-3311 or info@investor3.ca.

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) is pleased to report that it has concluded its confirmation ("twin hole") and metallurgical diamond drill program at its Shymanivske Iron Ore Project in Ukraine. The Company is pleased with the assay results received thus far as they align very well with the historical drill hole data for the Project. Additional assay results are still expected over the coming six to eight weeks. With the conclusion of the twin hole program, Black Iron now has sufficient drill core to complete its metallurgical test work program which has already been initiated.

 

George Mover, Chief Operating Officer of Black Iron, commented, "We have now successfully completed the confirmatory drill work with additional assay results to be received from the lab on an ongoing basis. We are now working closely with our laboratories Mekhanobrchermet in Ukraine and SGS Lakefield in Canada to complete the required metallurgical test work with input from our consultants BBA Inc. and Hatch Ltd., as well as the Ukrainian mining design group Yuzhgiproruda, to deliver the preliminary economic assessment ("PEA") for Shymanivske. Our project development timeline remains on schedule and we anticipate being able to deliver the PEA in the fourth quarter of 2011."

 

Results from the twin hole program continue to align well with historical data from the Shymanivske Project. Assay results received for three additional twin holes show thick iron bands with grades exceeding 32%.

Highlights from the three additional twin holes 13302-T, 20291-T and 21711-T include:
13302-T	19.1	164.0	144.9	32.5	17.8
	48.0	102.0	54.0	34.4	20.6
	216.5	260.0	43.5	30.8	12.3
20291-T	23.1	142.0	118.9	33.8	21.9
	23.1	107.0	83.9	35.3	25.3
	186.0	231.0	45.0	30.6	14.8
21711-T	81.0	152.0	35.5	32.5	15.7
	176.0	327.0	106.7	32.5	16.6

 

The twin hole program was initiated by the Company on April 5, 2011 and is designed to provide drill core suitable for metallurgical test work to establish an optimized process flow sheet for the ongoing preliminary economic assessment, as well as to verify and confirm the previous drilling and resource work completed on the Project.

Previously released twin hole assays include:
20342-T	24.0	188.0	164.0	32.1	18.9
	65.0	148.0	83.0	33.8	21.6
	237.0	274.0	37.0	29.8	17.5
5485-T	24.8	106.5	81.7	31.8	20.0
	171.0	190.6	19.6	31.4	19.8
21733-T	18.5	133.1	114.6	32.5	20.7
	173.5	201.0	27.5	30.8	17.1
21674-T	22.0	87.8	65.8	32.1	18.6
	128.0	155.0	27.0	30.8	17.4
12850-T	14.0	82.4	68.4	32.4	20.2
	114.0	142.5	28.5	30.7	17.0
13302-T	19.1	164.0	144.9	32.5	17.8
	48.0	102.0	54.0	34.4	20.6
	216.5	260.0	43.5	30.8	12.3
20291-T	23.1	142.0	118.9	33.8	21.9
	23.1	107.0	83.9	35.3	25.3
	186.0	231.0	45.0	30.6	14.8
21711-T	81.0	152.0	35.5	32.5	15.7
	176.0	327.0	106.7	32.5	16.6

 

The diamond drills used in the twin hole program remain at the Shymanivske Project site and are preparing for the Company's first exploration and definition drilling program. This new drill program will target the northern extent of the Shymanivske property, as well as the broader land package at depth, with the aim of increasing the compliant resource size and upgrading its resource classification (i.e. convert a portion of the inferred resources to measured and indicated status).

 

Black Iron has received a temporary suspension of activity order with respect to its drilling activities from the Dnipropetrovsk Region Ecological Inspectorate, requiring the Company to respond to certain information filings and potential deficiencies before resuming drilling activities. The Company is responding to the order and working closely with Ukrainian Authorities. While there can be no assurance as to the timing of a resolution of this matter, Black Iron remains optimistic that the issue will be resolved soon as such actions by the Ukrainian regulating agencies are customary when dealing with new mining projects and are usually resolved on a timely basis.

Commenting on the anticipated commencement of the exploration and definition drilling, Matt Simpson, President and CEO of Black Iron, said, "We are looking forward to the opportunity to explore the Shymanivske Project extensively and to test our theory that a significant addition to the Project's resource exists in the previously unexplored northern part of the property. It is unfortunate that we have encountered this unforeseen delay in commencing the exploration work, however, it is very important to note that this delay does not impact our Project development timeline; the only impact is the timing to increase the Shymanivske resource estimate size and classification. We are committed to working closely with Ukrainian Officials and are optimistic that we can resume drilling shortly."

 

Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Krivoy Rog, Ukraine. This project contains a NI 43-101 compliant resource with 345Mt measured and indicated resources grading 32% iron and 469Mt of inferred resources grading 31% iron. The project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project which it intends to further explore to determine its potential. Please visit the Company's website at www.blackiron.com or write us at info@blackiron.com for more information.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor Relations

Investor Cubed

(647) 258-3311

Toll Free: 1 888 258-3323

OR

Matt Simpson

Black Iron Inc.

President & Chief Executive Officer

(416) 309-2138

info@blackiron.com

www.blackiron.com