Brisbane, June 13, 2008 (ABN Newswire) - Kangaroo Metals Limited (ASX: KML), a diversified exploration and mining company with projects in Queensland, has completed its due diligence and will progress to acquire a 100% interest in the Riverside Alluvial Tin Mine (ML7M/2001 and ML14M/1998), South Mount Cameron (EL21/2002), Main Creek (EL27/2001) and Moorina Prospects (EL22/2002) in Northeast Tasmania.
Results Summary:
Due diligence focused on 18Ha of the 64Ha of Mining Leases (ML7M/2001 and ML14M/1998) immediately available for mining (28% of the mining leases, ground immediately surrounding the plant).
Bulk sampling results across the 18Ha tested show;
Average Grade: 449 g/m3 (range: 225.7-825.0 g/m3)
JORC-Compliant
Indicated Resource: 240 tonnes of SnO2 over 10.6 Ha
JORC-Compliant
Inferred Resource: 127 tonnes of SnO2 over 6.55 Ha
Uneconomic Ground: 0.85 Ha
Additional test mining at the site has confirmed the average grade through processing an additional 1000 m3 panel, with over two tonnes of saleable concentrate already extracted during the due diligence process.
Operations at Riverside continue with a full mine plan and efficiencies being introduced to increase production rates.
Further Exploration:
The primary mineralized zones being targeted are Quaternary and Tertiary alluvial materials. Exploration work will now be undertaken over the next few months across a further 1175Ha of alluvial material at South Mount Cameron (EL21/2002) to extend the available resources on the Exploration Leases being acquired.
Exploration will target areas with previous exploration data to bring the results to JORC compliance. These areas include the Clifton Lead, Watts-Harmon, Dorset Flats, Corduroy Creek, ABC Creek, Dorset Flats, Gunns, Chung and Ruby Creek Flats. Additional Mining Leases have already been submitted to cover these areas.
An additional 17,200Ha, which contains a further 5463Ha of alluvials, is also under application and extends the holding in North East Tasmania to 20,000Ha of ground, of which a total of 6638Ha is prospective for alluvial tin.
"KML's ground in Tasmania is historically rich in tin, and further work to bring the existing exploration data to JORC compliance should see us with operations placed in the North East for a significant time to come" stated Dr Brett Teale, Managing Director.
"Significant investment in the region by Van Diemen Mining, who are reopening the Endurance and Scottia Mines to the direct north of our ground and Macquarie Harbour who are advancing land immediately east of our ground, shows the prospectivity and confidence in the region held by KML is heavily supported by other serious operators."
Summary:
Area Tested: 18 Ha for 370 tonnes of SnO2
Average Grade: 449 g/m3
Average Alluvium
Volume per Hectare: 45780 m3
Mining Leases: 64 Ha
Alluvium under
acquisition: 1175 Ha
Total Alluvium
including new application: 6638 Ha
KML's progress towards acquiring the Riverside Mine, and South Mount Cameron portfolio of sites, is the second step along the planned strategy with revenue from both KML Geoscience and Tasmanian operations expected to sustain the planned exploration and acquisitions for the near future.
Note:
This report is based on and accurately reflects information compiled by Dr Brian New, PhD, who is a fulltime employee of the Company. Dr New has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Brian New consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
