Brisbane, Sept 18, 2008 (ABN Newswire) - Kangaroo Metals Limited (ASX:KML), a diversified exploration and mining company with projects in North Queensland and Tasmania, has identified further north and south extensions to its Mt Ruby magnetite deposit.

Close spaced geophysical data over KML tenement EPM14880 collected by KML Geoscience has been fully processed and followed up by field investigations of the significant features directly around Mt Ruby. Samples of magnetite float were identified overlying the magnetic highs that appear to be extensions of the intense Mt Ruby magnetic signature. Results from previous float sample analyses (ASX Release 4th July 2008) tested through ALS in Townsville show that Fe-content is in excess of 68%. The combination of geophysical and surface samples suggests that the magnetite body centred on Mt Ruby may extend over 1km north and south. Although the width of the body has not been determined along its entire length, magnetite outcrops over a width greater than 80m at Mt Ruby itself.

Exploration at Mt Ruby conducted by other parties determined that magnetite extended to depths greater than 60m as drilling did not penetrate the base of iron mineralisation.

Additional magnetic anomalies also identified in the geophysical survey have yet to be fully rationalised and further field investigations are planned. Diamond drilling of the extensions to Mt Ruby within the anomaly on KML tenement EPM14880 are planned to commence before year's end to determine the full dimensions of magnetite mineralisation.

"The potential value of Mt Ruby as a lump iron ore asset continues to grow with each new piece of data we acquire. What was initially thought to be a relatively small magnetite deposit is quickly becoming a significant deposit in its own right. KML looks forward to further field surveys and the commencement of the drill program to determine the real value of what we have in our hands."