Press Releases

Melbourne, Mar 19, 2010 (ABN Newswire) - Pluton Resources Limited (ASX:PLV) has received assay results for the first 2 holes of Phase II drilling on Hardstaff Peninsula, Irvine Island, Western Australia (E04/1172).

Summary

- Results for the Yampi Member (16m @ 49.05% iron, 18m @ 50.22% iron) are consistent with targeted extensions of the current Inferred Resource of 54Mt @ 49% iron (Fe), including 25Mt @ 54% iron (Fe).

- Results from the Wonganin Sandstones are slightly better than expected, with selected intersections of higher grade than those previously tested as being suitable as feed ores for concentration by the CSIRO.

Background

A second phase of drilling on Irvine Island is targeting an extension to an Inferred Resource of 54Mt at 49% iron (Fe) identified from drilling in 2008. Phase II drilling is targeting a total of >100Mt at Hardstaff Peninsula of mixed grade Direct Shipping Ore and feed ore for beneficiation, and up to a further 30Mt of predominantly Direct Shipping Ore from the Isthmus region.

Phase II drilling is primarily targeting iron mineralisation contained within a rock unit called the Yampi Member. This is the same unit that is mined on the adjacent Cockatoo and Koolan Islands.

Test work by the CSIRO has shown that lower grade feed ores from the Yampi Member ranging in grade between 28.6% iron and 46.8% iron (Fe) are well suited to concentration (beneficiation) using conventional methods. These ores have been shown to produce concentrates of >66% iron (Fe) at high mass and iron recoveries.

Test work has shown that additional concentrate can be produced from rocks overlying the Yampi Member. These rocks are referred to as the Wonganin Sandstones. The Wonganin Sandstones were originally considered as waste, but feed materials grading between 25.4% iron and 32.2% iron have yielded iron concentrates of >66% iron (Fe). They are now considered as an additional resource target to the Yampi Member.

Results

Yampi Member

Table 1. Composite results through the Yampi Member for drill holes 29 and 33, Irvine Island, Western Australia*.

-------------------------------------------
           Hole Interval From   Fe   SiO2
                 (m)      (m)    %     %
-------------------------------------------
             29    16     125  49.05  27.59
             33    18     134  50.22  25.62
including    33    13     137  55.08  19.38
-------------------------------------------
Al2O3  P   MgO  S   LOI
 %     %    %   %    %
------------------------
0.65 0.01 0.06 0.08 0.92
0.17 0.01 0.04 0.05 0.91
0.87 0.02 0.08 0.03 0.95
------------------------

Wonganin Sandstones
Table 2. Composite results through the Wonganin Sandstone for drill holes 29 and 33, Irvine Island, Western Australia*.

------------------------------------------
           Hole Interval From   Fe    SiO2
                 (m)      (m)    %      %
------------------------------------------
             29    64      9  25.38  56.82
including    29     6     60  36.28  37.26
             33    52     29  28.21  33.43
Including(a) 33    11     46  34.91  43.71
Including(b) 33     8     73  37.57  36.61
------------------------------------------
Al2O3  P   MgO  S   LOI
 %     %    %   %    %
------------------------
4.07 0.03 0.18 0.01 1.16
6.73 0.04 0.35 0.00 1.23
3.91 0.04 0.16 0.02 1.45
3.23 0.06 0.08 0.01 2.38
5.46 0.04 0.29 0.11 1.18
------------------------

* results shown are unweighted averages of contiguous samples.

Conclusions

Results from the Yampi Member are consistent with expectations and the existing Inferred Resource of 54Mt @ 49% iron (Fe).

Results from the Wonganin Sandstones are slightly better than expected, with selected intersections of significantly higher grade than those tested by the CSIRO. Higher feed grades can ultimately result in higher mass recoveries and lowered costs during iron concentration.

Levels of impurities other than silica remain universally low.

Drilling on Irvine Island is continuing. Samples have been submitted from Holes ID12A and ID12B. These holes extend to the western edges of Hardstaff Peninsula and outside the current Inferred Resource area of 54Mt at 49% Fe. Visual interpretations of these holes are positive and results are pending.

Contact

Mr. Tony Schoer Managing Director Mob: +61-411-232-711 Email: tschoer@plutonresources.com