Black Iron Targets 1.0 to 1.2 Billion Tonne Mineral Deposit Grading 28% to 32% Iron With Resumption of Drilling at Shymanivske
- Ruling Removes Temporary Suspension of Activity Order for Drilling on Black Iron's Symanivske Project - Ruling Paves Way for Black Iron to Commence Definition and Exploration Drilling Program Upon Receipt of New Drilling Permits and Remobilization of Drills - 20,000 Meter Drill Program Aims to Increase Estimated Mineralization at Shymanivske to 1.0 to 1.2 Billion Tonnes Grading 28% to 32% Iron - Drilling to Target Known Mineralized Zones Open Along Strike to the Northern Portion of the Property and at Depth Across the Deposit - Black Iron Believes It Has Sufficient Cash on Hand to Complete the Ongoing Preliminary Economic Assessment as Well as This Drill Program
Wednesday, October 26, 2011
Matt Simpson, President and CEO of Black Iron, commented, "We are excited by the favourable ruling received as it will pave the way for Black Iron to commence its first definition and exploration work program. This program has the potential to not only increase the overall size of the mineral deposit, but also upgrade the mineral categorization of the resource. Based on an increase in size to the mineral deposit, we would begin analyzing the potential to increase our projected annual production rate. An increase in annual production should significantly add to the project value."
The Shymanivske Iron Ore Project has an existing National Instrument ("NI") 43-101 compliant measured and indicated mineral resource containing 345 million tonnes grading 32% iron and an additional inferred mineral resource containing 469 million tonnes grading 31% iron (refer to the National Instrument 43-101 technical report dated January 31, 2011 entitled "Resource Estimate – Shymanivske Deposit in Ukraine" filed under the Company's profile on SEDAR for further details). The initial definition and exploration drill program aims to increase the total size of the potential mineral deposit to 1.0 to 1.2 billion tonnes at a grade between 28% to 32% iron. The potential tonnage and grade are conceptual in nature, as there has been insufficient exploration to define an increased mineral resource and it is uncertain if further exploration will increase the mineral resource. These updated ranges for the potential mineral deposit tonnage and grade are reported as exploration targets based on the presence of known mineralized zones open along strike to the north and at depth based on results from the recently completed ground geophysical program (refer to news release dated May 3, 2011).
George Mover, Chief Operating Officer of Black Iron, commented, "It is an exciting time for Black Iron as we expect this program will upgrade the categorization and add significant tonnage to our mineral resource estimate for the Shymanivske Project. Results from this program will be released on a regular basis and should result in an updated resource estimate in the second quarter of 2012."
Program Details
The initial definition and exploration drill program will consist of 20,000 meters of drilling, laboratory assays of core and updated independent resource estimate by Watts, Griffis and McOuat Limited in the second quarter of 2012. The drill program will commence with seven drills upon receipt of the necessary drilling permits and is expected to take five months to complete. Drilling will be directed at upgrading the inferred resource to measured and indicated as well as expanding the known mineralization to the north of the Shymanivske property and at depth across the deposit, targeting new areas outlined by the previously completed ground gravity survey.
Black Iron has engaged Ukraine-based GeoResources Limited to complete the drill program using modern equipment under the direction of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers, of Toronto, Canada, who are to ensure all field and laboratory work is conducted in compliance with National Instrument 43-101 standards and best practices guidelines.
About the Company
Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Kryviy Rih, 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 of the ruling on the Company's planned work programs, the timing and receipt of the necessary permits and approvals to conduct further work on the Company's properties, the timing, amount and cost of future exploration and development of the Company's projects, 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 info@blackiron.com
OR
Matt Simpson Black Iron Inc. President & Chief Executive Officer +1 (416) 309-2138