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 commenced the second stage upgrade to the Riverside Alluvial Tin Mine and further exploration of its Tasmanian tenements.

Modifications to the processing plant itself were completed in July lifting maximum throughput to 280m3/h. Second stage modifications will now introduce a hopper with apron feeder and conveyor to achieve a constant feed rate of 3.5-4 m3/minute. Current Hopper and sluice configuration produced "surged feed" which was inefficient for high volume operations and produced delays in truck cycle times waiting for plant feed to clear. The new system will incorporate a holding volume in the hopper and eliminate dwell times for the truck, improving production levels and efficiencies. These improvements are expected to be completed in 3-4 weeks, and commissioned shortly after.

Exploration to extend the inventory at Riverside has commenced with sampling at Gunn's Quarry, Amdex Tailings, ABC Creek, Corduroy Creek, Harmon-Watts, Main Creek and Moorina underway. The samples will be processed using a mobile trommel and jig plant which is a scaled down version of that currently used at Riverside. The data acquired through this approach should be directly applicable to recovery for operations undertaken using the full-scale plant. Exploration is expected to take 2-3 weeks.

"KML is pleased with the progress made at Riverside and in particular the knowledge and experience it has given us to be applied for further exploration and across any operations both in Tasmania and California Creek. Riverside is a small mine at present and that gives us the flexibility to test and prove methods and equipment which can be applied to larger operations."