Black Iron Q2 Update

August 11, 2011

Filing of its interim financial statements and MD&A for the three and six months ended June 30, 2011 on SEDAR.

The Company continues to work with Ukrainian governmental officials to try to address and respond to the Dnipropetrovsk Region Ecological Inspectorate's concerns.

o   The Company has engaged Ukrainian counsel to assist in resolving the interpretation of the potential deficiencies by the Inspector as the Company and its counsel disagree with the Inspectorate's interpretation of permissive subsoil use.

o   There can be no assurance as to the timing of a resolution.
 

"On the technical side, our scoping study and metallurgical test work for the Shymanivske Iron Ore Project in Ukraine is advancing nicely and remains on schedule for delivery in the fourth quarter of this year. We have successfully completed a 6,700 meter confirmatory twin hole drilling program and are preparing for our first exploration and definition drilling campaign which will start upon resolution of our temporary suspension of activity from the Dnipropetrovsk Region Ecological Inspectorate. This new drill program will target the north end of our property boundary, as well as the overall deposit at depth, with the aim of both increasing the resource size and classification."

Matt Simpson, President & CEO

 

 

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

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) has filed its interim financial statements and MD&A for the three and six months ended June 30, 2011 on SEDAR (www.sedar.com).

 

"Our technical and corporate development teams have made significant strides since Black Iron successfully debuted on the TSX March 29, 2011," said Matt Simpson, President and CEO of Black Iron. "On the technical side, our scoping study and metallurgical test work for the Shymanivske Iron Ore Project in Ukraine is advancing nicely and remains on schedule for delivery in the fourth quarter of this year. We have successfully completed a 6,700 meter confirmatory twin hole drilling program and are preparing for our first exploration and definition drilling campaign which will start upon resolution of our temporary suspension of activity from the Dnipropetrovsk Region Ecological Inspectorate. This new drill program will target the north end of our property boundary, as well as the overall deposit at depth, with the aim of both increasing the resource size and classification."

 

Simpson also added, "We have also been very active on the corporate side adding key hires such as George Mover as our Chief Operating Officer based in Ukraine with previous experience with Ferrexpo, and other key additions to our teams in Toronto and Krivoy Rog. Jaroslav Kinach joined our Board of Directors and will provide guidance on a variety of financial fronts as well as insight on doing business in Ukraine. Finally, we have successfully attracted equity research coverage from five investment banks: Cormark, Northland, Union, Macquarie and Desjardins, and look to continue to work with these analysts and others as we continue to develop our projects."

 

Further information on Black Iron and on the Shymanivske Project can be accessed at Black Iron's corporate website at www.blackiron.com or on Black Iron's SEDAR profile at www.sedar.com.

 

The Company continues to work with Ukrainian governmental officials to try to address and respond to the Dnipropetrovsk Region Ecological Inspectorate's concerns and has engaged Ukrainian counsel to assist in resolving the interpretation of the potential deficiencies by the Inspector as the Company and its counsel disagree with the Inspectorate's interpretation of permissive subsoil use. While the Company and its counsel are working diligently on this matter, there can be no assurance as to the timing of a resolution.

 

About the Company

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.

The technical contents of this press release have been prepared under the supervision of and has been reviewed and approved by Farshid Ghazanfari, P.Geo., Chief Geologist, who is a Qualified Person as defined by NI 43-101. For further information, please see the technical report of the Company, which is available on SEDAR at www.sedar.com.

 

Forward Looking Information

 

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the expected effect that recent financial and technical developments will have on the Company's future success, the realized potential of new additions to the board, the timing and amount of future exploration and development of the project, and the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking information are based on certain assumptions and analyses made by the Company based on known facts at the time. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this press release, including, without limitation those described in the Company's public disclosure documents which may be found under the Company's profile on SEDAR. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking information, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking information prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking information contained in this press release. The forward-looking information contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor Relations

 Investor Cubed

+1 (647) 258-3311 or Toll Free: 1 888 258 3323 

  

OR

 

Matt Simpson

Black Iron Inc.

President & Chief Executive Officer

+1 (416) 309-2138 info@blackiron.com