Celamin Holdings NL (ASX:CNL) Announce Trench And Drill Results For Salsala Prospect

Melbourne, May 31, 2011 AEST (ABN Newswire) - Celamin Ltd has advised Celamin Holdings NL (ASX:CNL) the following:

Trench and drill hole sampling results have been received for the Salsala Prospect and for trenches and a pit at Bir El Afou prospect. These results have confirmed the Phosphate mineralisation as expected.

Locations of the pits and trenches at Salsala are shown in the attached figure. All drill hole collar co-ordinates are listed in the attached table. (see link at the bottom of the release)

The trenching program was curtailed at Bir El Afou in favour of drilling. The terrane necessitated deeper pits and trenches than originally planned.

Drill holes at Salsala were the first holes put into this prospect and were located at regular intervals along the outcrop. Only one drill hole (which did not intersect mineralisation) drilled <90% core recovery. Most drillholes drilled >95% core recovery. HQ size core was cut and half core sampled to lithological intervals or 1 metre. Trenches were channel sampled perpendicular to mineralisation at 1 metre intervals or to lithology. Continuous channels were cut at least 15 cm wide and 5-10 cm deep into the walls of the pits or trenches.

Drilling was slowed by the events that occurred in Tunisia in January and the subsequent curfew. Drilling conditions in the limestone overburden at Bir El Afou and Boukechrid also slowed progress more recently.

All the samples were analysed by ALS Global by ME-ICP61 for 33 elements and by ME-XRF06m for 11 major oxide compounds. Core samples were half split and prepared in Tunisia by TMS for shipment to Spain. Pulps were prepared by ALS-Global in Spain for shipment to Canada for analysis. Trench channel samples were prepared in a similar fashion in Tunisia and shipped to ALS Global in Spain for preparation and analysis using the same methodology as half-split core.

Duplicate and replicate sample analysis was slowed by a number of issues including the events that occurred in Tunisia in January. Replicate pulps were sent to another laboratory for analysis of major oxide compounds using XRF techniques as well. A further check has been undertake at ALS using another XRF method (direct fusion digest - XRF12P) specifically designed for high-carbonate phosphate samples. All these checks have compared well.

The initial survey results at Salsala indicate that the southern end of the area is prospective. This will be examined in more detail during the proposed Feasibility Study. Evaluation of data from the BEA prospect area as well as engineering planning considerations has led the drilling focus into this prospect area for the delineation of the initial Stage 1 mineralisation target.

Kevin Nichol the Chairman of CNL said "We are very pleased to announce the initial trench and drill results at the Bir El Afou Project and to confirm that they are in line with our expectations for this Project. Our exploration team has now overcome some organisational issues, partly caused by the events in Tunisia in January and we expect results will flow more regularly from now on."

Note:
The estimate of Resource at Oued El Kebir was made using a polygonal estimating methodology. This involved estimating tonnage based on area of influence of data collected from surface diamond core drillholes, underground diamond core drillholes and sampling of underground openings including assaying of samples, and measurements of thickness and estimations of density of the samples. This data was spaced variably and because of various modifying factors it was categorised as Inferred (based on the widest data spacing and other factors) until some check data can be gathered. This will be done during the planned 'due diligence' drilling and sampling program.

The mineralisation was delineated geologically and because of the shape and style of the mineralisation, the boundary of this mineralisation generally concurred with a cut-off-grade of 0.5% Pb. The tenor of the mineralisation delineated at this cut-off grade demonstrated a realistic inventory of mineralisation which, under assumed and justifiable technical and economic conditions, might, in whole or in part, become economically extractable.

At Oued El Kebir the Inferred Resource is stated in accordance with the JORC Code. A competent person may not use any terminology referring to Resource except as under the guidelines of this Code. Inferred Resource is the lowest category of Resource under the Code.

For the complete Celamin announcement including tables and figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/355613.pdf

Contact

Kevin Nichol Chairman Celamin Holdings N.L Phone: +61-3-9692-7222 Email: generaladmin@victoriangoldmines.com.au http://www.victoriangoldmines.com.au/