ABN Newswire

Tabora Limited Offers An Exciting Investment Opportunity Into A Focused Explorer of Rare Earth Elements (REE) and Diamonds, Tanzania

newsroom@abnnewswire.net — Thu, 22 Mar 2012 05:01:46 GMT

Tabora Limited offers investors an exciting opportunity to invest in a focused explorer of Rare Earth Elements ("REE") and diamonds in Tanzania.

Tanzania is an immensely well endowed geological province with many examples of long term production companies and more recent exploration success stories - particularly with gold. However, Tanzania offers an abundance of other commercial commodities such as REE's and diamonds. Tabora is targeting the successful identification and delineation of these particularly sought after REE commodities.

Tabora has a specific advantage in its exploration strategy. Under a JV arrangement with Resolute Limited, a successful gold producer in Tanzania of over 15 years, Tabora has exclusive use of Resolute's extensive geological and geophysics database for all commodities other than gold. The net effect of this is that Tabora has a tremendous springboard in which to expedite its exploration strategy in terms of time and money through the already established and paid for data base.

Fundamental to any company success is the board and management. Tabora has assembled within its ranks an impressive team of technical and / or commercial individuals with exceptional track records in respect to exploration and production success as well as significant returns to shareholders through company growth and capital gains success.

The company is currently raising AUD $5million through an IPO of shares on the ASX which will enable them to take commercial advantage of an alliance with Resolute Limited to focus on their portfolio of selected tenements in a region of renowned for economic REE mineralization based on the recent commercial success of several neighboring explorers advancing to developer status.

Corporate Highlights:

- Exciting opportunity to explore for Rare Earth Elements ("REE") in Tanzania.

- Seeking a A$5m IPO on the ASX

- Alliance with Resolute (RSG) on key projects.

- Combined ground holding that covers over 753 km2 which is considered highly prospective for economic REE mineralisation.

- Although Tanzania has significant known REE deposits and carbonatites country remains under-explored.

- Prospectivity for diamonds retained for when market condition return.

For further information, you can visit the Tabora website at:
http://www.tabora.com.au.

Tabora Limited
T: +618-9388-6069
F: +618-6380-1026
E: infor@tabora.com.au
http://www.tabora.com.au

Pluton Resources Limited (ASX:PLV) Quarterly Activities Report

newsroom@abnnewswire.net — Tue, 31 Jan 2012 14:20:00 GMT

Pluton Resources Limited (ASX:PLV) is pleased to provide a quarterly report for the period ended 31 December 2011.

HIGHLIGHTS

- Current drilling program on Irvine completed with rig de-mobilised.

- Formal environmental approval process commenced.

- Strategic partnership structure finalised with Timeone Holdings, including 100% preconcentrate off-take agreement.

- Pluton progresses with potential acquisition of Cockatoo Island.

- 100% conversion to Indicated Mineral Resource category for Hardstaff Peninsula.

COMMENTS

Tony Schoer, Managing Director, said: "The quarter ended December 2011 has been very significant for the Company. The finalisation of a strategic partnership structure with Timeone and the progression of the potential acquisition of Cockatoo Island will add significant long term value to the Company."

"Pluton has completed the exploration drilling campaign on Irvine and now moves from exploration into pre-development. This is an important transition for the Company, and is highlighted by the appointment of a Chief Development Officer and an Environmental Manager to assist in taking the Company through to production."

"In June 2011 Pluton announced various programs required to significantly upgrade the value of the Irvine project. These are ongoing and are summarised in this report. Rather than wait for all tasks to be completed, Pluton will announce progressive changes in value as they are determined, commencing with the revised mine life which is expected to be announced in February."

To view the complete Pluton Resources Quarterly Report, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-368522.pdf

Pluton Resources Limited
T: +61-3-9867-8283
F: +61-3-9867-8587
http://www.plutonresources.com

Pluton Resources Limited (ASX:PLV) Irvine Island Assay Update for Hardstaff and Isthmus Regions

newsroom@abnnewswire.net — Mon, 23 Jan 2012 09:11:00 GMT

The Directors of Pluton Resources Limited (ASX:PLV) have received final assay results from the Phase II diamond drilling program at the Hardstaff Peninsula and Isthmus Region on Irvine Island, Western Australia (E04/1172). Irvine Island is Pluton's flagship iron ore development project.

HIGHLIGHTS

- Significant assay results received from the Hardstaff Peninsula in drill holes 11DDH111 and 11DDH115.

- Drill hole 11DDH111 intersects 17.1m @ 49.1% iron from 190.0 m to 207.1 m in the target Yampi Member. Drill hole 11DDH115 intersects 42.1m @ 46.4% iron from 210.9 m to 253.0 m in the target Yampi Member.

- Multiple intersections averaging greater than 21% iron interested in the overlaying Wonganin Sandstone in both drill holes.

- Significant assay results received in Isthmus Region drill hole 11DDH119.

- Drill hole 11DDH119 intersects 7.0m @ 50.8% iron from 23.3 m to 30.0 m and 13.6 m @ 42.1% iron from 84.4 m to 98.0 m in the target Yampi Member. Three drill holes have previously been completed from this site.

COMMENTS
Pluton Resources Managing Director, Tony Schoer said: "The two diamond holes completed at the Hardstaff Peninsula are significant in that they continue to demonstrate continuity and grade of iron mineralisation developed in this region".

"Whilst the results for drill hole 11DDH111 were included in our latest Mineral Resource estimation released to the ASX on 8th November 2011, the Yampi Member results in 11DDH115 were not included as they were received after the cut-off date for the estimation. This information will now be included as part of our next Ore Reserve update for the Project".

"In addition, the assay results from hole 11DDH119 drilled for hydrological purposes at the Isthmus Region is considered significant as it provides additional assay data that will be included in our next resource estimation for the area".

Hardstaff Peninsula
Drilling has been completed at two additional drill sites at the Hardstaff Peninsula (Figure 1). One combined purpose angled resource definition/geotechnical drill hole, (11DDH111) was completed at drill site Y2-9. One vertical combined purpose resource definition and hydrological monitoring hole (11DDH115) was completed at site Y2-11. Vertical environmental monitoring drill holes (11DDH112 and 11DDH1116) were also completed at each site. Drill core from the environmental monitoring holes was not submitted for assay.

Isthmus Region
One combined purpose vertical resource definition/hydrological drill hole, (11DDH119) was completed at drill site K at the Isthmus Region (Figure 2). Three diamond drill holes have been completed at this drill site (11DDH081 to 11DDH083) and reported previously (ASX announcement 27th July 2011).

An additional vertical hole was completed at this site to enable hydrological monitoring equipment to be installed down hole for sub-surface groundwater modeling. The drill core from this hole was also assayed to provide additional information for inclusion in the current Isthmus Region resource estimation.

For the full release including results data, please view:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-368218.pdf

Pluton Resources Limited
T: +61-3-9867-8283
F: +61-3-9867-8587
WWW: www.plutonresources.com

Pluton Resources Limited (ASX:PLV) Appoints Mr Brett Clark as Chief Development Officer

newsroom@abnnewswire.net — Tue, 10 Jan 2012 09:14:00 GMT

Pluton Resources Limited (ASX:PLV) are please to advise the appointment of Mr. Brett Clark as Chief Development Officer (CDO).

Brett has had extensive operating and development experience with the Rio Tinto (ASX:RIO) (NYSE:RTP) group, WMC Resources, Antofagasta (LON:ANTO) /Barrick (TSE:ABX) (NYSE:ABX) JV, and other mining / advisory groups. He is currently a Project Director/Advisor at Murchison Metals Limited (ASX:MMX) and is a non-executive director of Rey Resources Limited (ASX:REY).

Pluton Resources Managing Director, Tony Schoer said: "Brett comes to us with a strong project development and operations background. Brett's role will be to bring both the Cockatoo and Irvine Island iron ore assets into production."

Brett will commence with the Company in the next few weeks and be based in Pluton's Perth office.

Tony Schoer
Managing Director 
Mob: +61-411-232-711
http://www.plutonresources.com

Pluton Resources Limited (ASX:PLV) Cockatoo Island Proposed Acquisition Update and Stage 4 Valuation

newsroom@abnnewswire.net — Fri, 23 Dec 2011 08:25:00 GMT

Pluton Resources Limited (ASX:PLV) is pleased to announce that after the successful completion of due diligence into the Company's potential acquisition of the iron ore assets on Cockatoo Island ("Cockatoo"), Western Australia, it has advised the current owners of Cockatoo Island in writing of the Company's intention to continue with the acquisition.

The conclusion of due diligence follows the ASX announcement on 2nd September, 2011 that Pluton had entered into a binding term sheet with the current owners being Cockatoo Mining, Cliffs Asia Pacific Iron Ore and HWE Cockatoo, in relation to the acquisition of their beneficial interest in mining tenements and certain infrastructure on Cockatoo Island.

Under the terms of the agreement, Pluton will assume full responsibility for the environmental rehabilitation of Cockatoo Island.

Pluton will now progress towards the next stage of the acquisition by reaching definitive agreements between all parties, which is scheduled for completion in January 2012.

The acquisition is subject to receiving regulatory approvals, third party consents and final Board approvals, and is scheduled for completion at the conclusion of the current Stage 3 open pit mining operations on Cockatoo Island in late 2012.

Cockatoo Island is part of a group of islands making up the Kimberley Iron Ore hub and includes Koolan Island and Irvine Island, the site of Pluton's flagship iron ore project.

Tony Schoer, Managing Director, Pluton, said: "Due diligence confirmed our view that Cockatoo Island has the potential to be extremely strategic and complimentary for our Irvine Island project, and also as an ongoing iron ore operation."

"Cockatoo Island produces high quality iron ore and has complimentary infrastructure, including a town site and airstrip, which removes the need for duplicate infrastructure thereby reducing our capital costs and environmental footprint on Irvine Island. "

"Stage 4 mining is expected to deliver a profitable return on our investment. Valuation studies show mining of Stage 4 will cover the full cost of the acquisition of Cockatoo Island including estimated rehabilitation costs and deliver a positive NPV. The acquisition cost and internally calculated NPV are not being disclosed due to commercial sensitivities, but will be advised after the definitive agreements are executed in January 2012.

The upside for Pluton is significant, and not just in terms of synergies related to infrastructure. Dependant upon metallurgical testing, Cockatoo appears to contain significant quantities of low grade ore that may be processed through the Irvine pre-concentrator plant, as well as low grade ore that could be direct shipped to Timeone's beneficiation plant in Rizhao, China without the need to preconcentrate.

There may also be potential to continue mining of high grade direct shipping ore from an underground operation and a smaller stage 5 extension. Both these areas are considered as exploration targets and will require additional investigation"

"Pluton has secured an Off-take Agreement with our strategic partner, Timeone Holdings, for 100% of Stage 4 production at a significant premium to reflect the quality of the ore. We are currently in discussions with Timeone about funding the acquisition and the capital required for development of Stage 4, and will advise the market the outcome of these discussions when they have concluded." he said.

Inputs into the valuation model for Stage 4 are given in Table 1 (see link at the bottom of the release).

Cockatoo Island Underground Exploration Target

Based on the surface geometry of the Cockatoo Island ore body, a conceptual underground exploration target in the range of 60 to 120 million tonnes may exist. This assumes that the width and depth of mineralisation intersected remains constant over the strike length of the Seawall Hematite intersected and mined in Stages 1 to 3 at Cockatoo Island.

Pluton's intention is to investigate the underground exploration target potential in more detail following the completion of requisite steps defined under the terms of the acquisition for Cockatoo Island.

Cockatoo Island Surface Exploration Target

In 2007, a suite of twenty three rock chip samples (CKR001 - CKR023) collected from surface at the south-eastern end of Cockatoo Island were submitted to Ammtec Ltd in Perth to test outcropping iron mineralisation within the keel of a plunging fold nose in the central part of the island as potential feed source for a WHIMS beneficiation project.

A summary of the head grade analysis is given in Table 3 (see link at the bottom of the release).

A summary of the twenty-three WHIMS results is given in Table 4 (see link at the bottom of the release). The majority of the samples returned iron assay grades in excess of >60% Fe after the WHIMS test work. It is noted that some samples retained elevated levels of silica after separation, these tended to have high initial levels of silica i.e. over 40 to 50%.

On the basis of the positive WHIMS test work that was completed from the initial program of twenty three rock chip samples, a program of reverse circulation drilling was completed during 2007/2008.

A total of thirty-one reverse circulation drill holes were completed to test iron mineralisation widths and grades within the Magazine Schist based on both interpreted contact positions of outcropping hematite quartzites and encouraging results from initial WHIMS test work within the keel of a plunging fold nose in the central part of the island.

Figure 4 (see link at the bottom of the release) displays the collar locations for the thirty-one reverse circulation drill holes that were completed as part of the program.

For the complete announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-367453.pdf

Tony Schoer
Managing Director and Chief Executive Officer
Pluton Resources Limited
Mob: +61-411-232-711
http://www.plutonresources.com

Pluton Resources Limited (ASX:PLV) Completes First Commercial Drill Platform Hire

newsroom@abnnewswire.net — Thu, 22 Dec 2011 12:44:00 GMT

Pluton Resources Limited (ASX:PLV) are pleased to announce that Pluton has completed its first commercial hire agreement for two company patented Universal Drilling Platforms. The drilling platforms were hired to Winmax Drilling to complete a two hole program near Koolyanobbing in Western Australia for a Canadian listed junior exploration company. The site was sensitive due to priority listed flora including grasses and grevilleas that generally only occur on the target iron formations.

Winmax was awarded the contract because of the low environmental impact of the drill platforms and the ability to work on a slope with minimal ground disturbance (<5m2). No site excavations apart from the four footings are required to prepare a drilling platform and all equipment was mobilised by helicopter.

The drill sites were located on approximately 20 degree slopes and 300m apart with each drilling platform providing safe working conditions on the remote site where OH&S is paramount.

Managing Director Tony Schoer said "Although the first hire agreements have currently yielded a modest return of approximately $25,000 for the drilling platforms, it is pleasing that they are versatile enough to be used on other exploration sites with environmental or heritage sensitivities. Several other companies continue to show interest in our patented drill platform".

Pluton Resources has also entered a commercial licensing agreement with Marathon Resources Ltd (ASX:MTN) to use a Universal Drilling Platform (UDP) in the Arkaroola region of South Australia. The Arkaroola region has now been proclaimed as an area where exploration and mining will be banned in perpetuity. Subject to the development of Marathon's future exploration strategy where UDP technology may be required, Pluton may derive future income from this agreement.

Tony Schoer
Managing Director
Mob: +61-411-232-711

John McDougall
Senior Geologist
Mob: +61-459-115-123

Pluton Resources Limited (ASX:PLV) and Timeone Holdings Finalise Irvine Island Offtake and Strategic Partnership Structure

newsroom@abnnewswire.net — Mon, 12 Dec 2011 09:24:00 GMT

Pluton Resources Limited (ASX:PLV) announces that it has executed a legally binding term sheet agreement with Timeone Holdings ("Timeone") for the off-take of all iron ore preconcentrate produced at Pluton's flagship Irvine Island iron ore project in Western Australia. The agreement follows the announcement on 4th August 2011 of the selection of Timeone as a strategic investor and partner for the Irvine Island project.

Under the terms of the agreement, Timeone will manage the barging of Irvine Island pre-concentrate to a trans-shipment facility located adjacent to Irvine Island from where it will be shipped to Rizhao Port, China. Rizhao is the world's largest iron ore import terminal located in Shandong Province, China, with close proximity to a number of Chinese steel mills.

Timeone has secured a separate agreement to extend existing beneficiation facilities at Rizhao Port to produce a 67.5% premium iron ore concentrate. Timeone will market the concentrate to end-users at market prices, utilising its strong end-user relationships and existing routes to market.

Details of the agreement are to be announced today in the Notice of Extraordinary General Meeting to be held on 11th January, 2012.

Agreement Summary

Pluton will retain 100% ownership of Irvine and Cockatoo Islands (subject to the completion of the proposed Cockatoo Island acquisition) and will be responsible for all capital and operating costs through to loading ships bound for Rizhao Port.

Timeone and its partners will retain 100% ownership of an extended beneficiation plant at Rizhao Port and be responsible for all capital and costs associated with freight from Irvine Island to China through to production of the final end-product.

From the sales proceeds, Pluton will be reimbursed costs which include mining, pre-concentration, barging and transshipment, royalties (third-party and State), marketing fees, all taxes (including MRRT, if any, but excluding company tax), capital costs, financing costs and overheads.

Timeone will also be reimbursed its costs which include freight from Irvine Island to Rizhao Port, beneficiation, all taxes (excluding company tax), a capital charge and overheads. A capital charge rather than full capital cost reimbursement is considered more appropriate as the extended beneficiation plant is expected to continue to operate after the conclusion of mining on Irvine Island.

After all cost reimbursements the remaining sales proceeds will be shared, with 70% paid to Pluton and 30% paid to Timeone.

Timeone will provide, at an arm's length commercial rate, barging and trans-shipment facilities and services (with costs being reimbursed to Pluton as above). Timeone will also receive a fee of 2.5% of revenue (with costs being reimbursed to Pluton as above) to market the iron ore concentrate and to assist in funding 100% of the development costs on Irvine Island.

Specifically, Timeone has committed to assist Pluton with:

- Obtaining vendor finance for all assets that are capable of vendor finance. This will include infrastructure on Irvine Island including the pre-concentrator plant, power plants and transshipment facility that represent a high proportion of development costs.

Note: The transshipment facility is owned and operated by Timeone Holdings and will not be financed by Pluton.

- Utilising surplus cash flow from stage 4 of the Cockatoo Island Project (subject to completion of the proposed Cockatoo acquisition); and

- Seeking the balance of finance (if any) from end-users of the iron ore concentrate.

Tony Schoer, Managing Director, Pluton said: "We selected Timeone as a strategic partner and investor due to the combination of financial capacity, logistics and beneficiation expertise, and their strong relationship with providers of large capital items, other mining companies and end-users. This agreement leverages all of those attributes."

"Timeone has also reached agreement with Rizhao Port Group Co. Ltd., and Rizhao Sanmu Mining Metallurgy Co. Ltd., (a subsidiary of Rizhao Sanmu group Co. Ltd.) to extend Sanmu's current beneficiation facilities at Rizhao Port to process the Irvine Island pre-concentrate."

"Timeone's committment to 100% of the pre-concentrate to produce a high grade iron ore concentrate provides the project with certainty, and the structure of the agreement moves us towards production."

"The partnership with Timeone is already proving beneficial in optimising capital and operating costs. Timeone is working with us to source a pre-concentrator and other equipment in China with potential to significantly reduce the capital requirements of the Irvine Island project."

"This agreement provides us with an efficient structure for financing the project and gives Pluton a robust path to market. Vendor finance is encouraged in China at competitive rates and is a common source of funding. We are now able to progress with confidence and certainty to a Definitive Feasibility Study and final investment decision. Final funding commitments will be agreed as Pluton move closer to development."

Elly Wang, a Director of Timeone, said: "Irvine Island is an exciting iron ore project and we see strong demand for its premium iron ore concentrate in Asian markets. Our commitment of $30 million to the Company and reaching agreement to extend beneficiation capabilities in China, before the project has been approved, is evidence of our commitment to Pluton and the potential we see in the project. We look forward to working closely with Pluton for the benefit of all Pluton shareholders."

Drafting of the final agreements to give effect to the commercial arrangements has commenced.

About Timeone Holdings:

Timeone is incorporated in the British Virgin Islands and is owned by Chinese private investors.

Timeone's business includes the design of mobile offshore transhipment platforms and the provision of mobile offshore transhipment services. Timeone has established a transport company in Inner Mongolia for the haulage of coal. Timeone has strong relationships with Rizhao Port Group, Sanmu and other mining and beneficiation companies.

About Rizhao Sanmu Mining Metallurgy Company:

Sanmu is a wholly owned subsidiary of Rizhao Sanmu Group Co. Ltd., a private company established in 1983, located within the Rizhao Port Lan Shan Port area and comprises five subsidiaries: Rizhao Sanmu Wood Industry Co. Ltd, Rizhao Sanmu Mining Metallurgy Co., Ltd, Rizhao Huang An Trading Pty Ltd, Rizhao Sanmu Group Fenshui Storage and Logistics Company and Rizhao Sanmu Thermal Power Plant.

Sanmu owns the Beneficiation Plant and a pellet plant located at Rizhao Port's Lan Shan port area. The Beneficiation Plant has a current capacity that is designed to process 2 Mtpa and covers an area of approximately 200,000 m2. The capacity of the Beneficiation Plant has the potential to be expanded to 8 Mtpa.

About Rizhao Port Group:

Rizhao Port Group is a company incorporated in Shandong Province in China and is a fully funded Chinese state-owned enterprise based in Rizhao, China.

Rizhao Port Group was established in May 2003. Since then, it has become a multi-functional, integrated large-scale modern enterprise group. Its operations covers a range of areas including port handling, storage and transportation, domestic and foreign trade, integrated logistics, harbor construction, construction and installation, real estate development, project supervision, machinery manufacturing, hotels and tourism and other industries.

Rizhao Port Group has two major ports, which are Shi Jiu and Lan Shan port. It has 44 productive berths with a designed capacity of 120 million tons or more. Since 2003, Rizhao Port Group increased its annual throughput capacity by 30.5% on average. In 2006, its annual throughput exceeded 100 million tonnes.

This number reached 151 million tonnes in 2008 and Rizhao Port Group became the 9th largest costal port in China, among which it is the largest Chinese costal port in importing iron ore and nickel ore, wood chips, bauxite, cement and soybean etc. In 2009, its cargo throughput was 181.3 million tonnes, which represents a 115.3% growth from 2005. Rizhao Port Group's growth rate ranks first in the nation's coastal ports.

Since 2003, investment made by Rizhao Port Group has accumulated to RMB100 million. It has built a number of specialized deepwater berths with 200,000 tonne and 300,000 tonne capacity and logistics centres. Since being listed in October 2006, Rizhao Port Group has successfully raised RMB3.24 billion.

Investors and analysts
Tony Schoer
Managing Director
Mob: +61-411-232-711

Pluton Resources Limited (ASX:PLV) Moves Forward With Potential Cockatoo Island Acquisition

newsroom@abnnewswire.net — Wed, 7 Dec 2011 13:18:00 GMT

Pluton Resources Limited ("Pluton") (ASX:PLV) are pleased to advise that after completion of due diligence the Company intends to advance forward with the potential Cockatoo Island acquisition.

On the 2nd September, 2011 Pluton announced that it had it has signed a legally binding term sheet with Cockatoo Mining, Cliffs Asia Pacific Iron Ore and HWE Cockatoo ("Joint Venturers") in relation to the acquisition of their beneficial interest in mining tenements and certain infrastructure owned by the Joint Venturers on Cockatoo Island located in the Kimberley Iron Ore Hub ("Potential Acquisition").

Following the completion of due diligence Pluton has advised the Joint Venturers that it intends to proceed to negotiate the key transactional document.

The potential acquisition is conditional on third party and regulatory consents. Pluton is currently seeking these consents and anticipates negotiations will be complete in January 2012.

It is expected Pluton will provide further information on the potential acquisition later this month.

Tony Schoer
Managing Director
Mob: +61-411-232-711

Pluton Resources Limited (ASX:PLV) Updates on Indicated Mineral Resource at Hardstaff Peninsula

newsroom@abnnewswire.net — Tue, 8 Nov 2011 11:29:00 GMT

Pluton Resources Limited (ASX:PLV) are pleased to announce an update from Inferred to Indicated Mineral Resource reported in accordance with the JORC Code, for the Hardstaff Peninsula on Irvine Island incorporating the latest available Phase II drilling results.

HIGHLIGHTS

- Yampi Member Indicated Mineral Resource of 175 Mt @ 33% total iron and 38.6% weight recovery (at a minimum 10% total iron cut-off grade) and includes 59 Mt @ 51% total iron and 55.1% weight recovery above a 50% total iron cut-off.

- Wonganin Sandstone Indicated Mineral Resource is now 368 Mt at 21% total iron (no cut-off grade applied).

- The global Indicated Mineral Resource tonnes reported in accordance with the JORC Code, now stands at 543 Mt for the Hardstaff Peninsula.

- All of the Mineral Resource defined at the Hardstaff Peninsula (543 Mt) is reported in the Indicated Mineral Resource category.

- Ore Reserve and Stage 2 valuation studies continue for the Project.

Comments

Managing Director Tony Schoer said: "The updated Mineral Resource statement converts the previously advised Inferred Mineral Resource in the northern area of the Hardstaff Peninsula into the higher confidence Indicated Mineral Resource".

"Pluton will now expand the initial Ore Reserve estimate to include the additional Indicated Mineral Resource defined in the north of the Hardstaff Peninsula thereby increasing the Ore Reserve base and significantly increase the mine life of the Project".

"The Pre-Feasibility Study completed in June 2011 did not value the Inferred Mineral Resource or the Indicated Mineral Resource in the northern half of Hardstaff. Now that the Inferred Mineral Resource has been converted to Indicated Mineral Resource, this can be valued along with the Indicated Mineral Resource to the north. This will make a material difference to the life of the operations".

Indicated Mineral Resource

An updated Mineral Resource estimate for the Hardstaff Peninsula at Irvine Island has been completed by AMC Consultants Pty Ltd, Melbourne. Drilling is continuing at the Project for environmental, metallurgical and geotechnical purposes with one diamond drill rig operating on a double shift basis.

The existing Indicated and Inferred Mineral Resource for the Hardstaff Peninsula (ASX announcement, April 27th 2011), have been updated based on the latest resource estimations for both the Yampi Member and Wonganin Sandstone. The Yampi Member Indicated Mineral Resource now stands at 175 Mt @ 33% total iron and 38.6% weight recovery, at a minimum cut-off grade of 10% total iron.

This also includes a higher grade Indicated Mineral Resource component of 59 Mt @ 51% total iron and 55.1% weight recovery using a cut-off grade of 50% total iron for the Yampi Member.

In addition, the Company is also pleased to announce an updated Indicated Mineral Resource for the Wonganin Sandstone of 368 Mt @ 21% total iron (no cut-off grade applied).

The global Indicated Mineral Resource tonnes reported in accordance with the JORC Code, now stands at 543 Mt for the Hardstaff Peninsula.

A resource statement has been prepared by AMC Consultants Pty Ltd of Melbourne and is summarised in Tables 1 and 2 (see link at the bottom of the release). More detailed Mineral Resource tables are provided at the end of this announcement.

The current Mineral Resource does not include outcropping iron mineralisation from the Isthmus Region of Irvine Island. It is anticipated that an updated Mineral Resource estimate for the Isthmus Region will be completed by end December 2011.

For the complete Pluton Resources Limited announcement including tables and figures, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-364374.pdf

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

Pluton Resources Limited (ASX:PLV) 3mm Dry Magnetic Separation Testwork Results Produce Positive Economic Benefits

newsroom@abnnewswire.net — Thu, 3 Nov 2011 08:23:00 GMT

Pluton Resources Limited (ASX:PLV) are pleased to advise that positive results have been received from additional dry magnetic separation test work completed at a coarse 3mm grind size on drill core composite samples taken from the Hardstaff Peninsula and Isthmus Region.

The production of a +40% iron pre-concentrate at a 3mm grind size is expected to offer a significant advantage by reducing capital and operating costs, as well as processing benefits.

HIGHLIGHTS

- Results from a total of nineteen (19) composite drill core samples from the Wonganin Sandstone at the Hardstaff Peninsula confirm the head Fe grade required to produce a +40% pre-concentrate is 28% Fe at 3mm grind size. The mass recovery is 52.7%.

- Results from a total of seven (7) composite drill core samples from the Yampi Member at the Hardstaff Peninsula indicate the head Fe grade required to produce a +40% pre-concentrate is 26% Fe at 3mm grind size.

- Results from a total of twelve (12) composite drill core samples from the Yampi Member at the Isthmus Region indicate the head Fe grade required to produce a +40% pre-concentrate is 34% Fe at 3mm grind size.

- The test work results, updated capital and operating costs will be incorporated into the next Ore Reserve update and Stage 2 project valuation.

Comments

Managing Director Tony Schoer said: "The results of the dry magnetic separation test work at a 3mm grind size are significant. They demonstrate that Pluton can produce a pre-concentrate with grades above +40% iron at coarser grind sizes. This has the potential to offer significant cost benefits to the Project in terms of reduced capital and operating expenditure given that grinding to 1mm is not required".

"Also encouraging from this latest round of test results is that the mass recovery for the iron mineralisation in the Wonganin Sandstone averages 52.7%. This compares favorably with the 50% mass recovery value that was used in the economic valuation studies in the Pre-Feasibility Study, announced on 6th June 2011".

"Based on these results, it is our intention to review our process and materials handling designs that were compiled during our Pre-Feasibility Study, in conjunction with our Chinese partners Timeone Holdings Limited. We will therefore incorporate any capital and operating improvements into our current Stage 2 valuation studies and Ore Reserve update for the Project".

Metallurgical Test Work Objectives

Pluton's Pre-Feasibility Study selected the production of a dry pre-concentrate on Irvine Island with final third-party off-island processing to a high grade concentrate as the preferred case for development of the Irvine Island project. This was also considered to offer the best environmental solution at Irvine Island.

Dry magnetic separation tests were previously conducted at 1mm, 2mm and 3mm grind sizes on a representative sample of the Wonganin Sandstone (PLV_8) collected from drill hole 10DDH039 located at the southern end of the Hardstaff Peninsula. The test work results confirmed that the sample could upgrade to a +40% pre-concentrate at a coarser grind size of 2mm and 3mm.

Based on this positive result, Pluton commenced 3mm bench scale variability testing by dry magnetic separation methods on Wonganin Sandstone and Yampi Member drill core composites samples from both the Hardstaff Peninsula and the Isthmus Region.

The test work samples were selected at varying drill hole depths and at a range of iron (Fe) and iron oxide (FeO) grades (including low grade material) to examine the resultant final iron concentrate and impurity grades and mass recoveries.

This information is to be incorporated into the next Ore Reserve determination and Stage 2 valuation studies for the Irvine Island Project.

This announcement details the procedure and test work results for the samples submitted for variability test work at a 3mm grind size by dry magnetic separation methods.

Test Work Samples

Variability testing was completed on a total of thirty-eight (38) diamond drill core composite samples collected from the Irvine Island iron ore deposit as follows:

- Six (6) composite samples collected from within the Wonganin Sandstone at the northern area of the Hardstaff Peninsula.

- Thirteen (13) composite samples collected from within the Wonganin Sandstone at the southern area of the Hardstaff Peninsula.

- Seven (7) composite samples collected from within the Yampi Member at the Hardstaff Peninsula at both the northern and southern areas of the Hardstaff Peninsula.

- Twelve (12) composite samples collected from within the Yampi Member at the Isthmus Region at both the eastern and western areas of the deposit.

All samples were crushed to 3mm with one-quarter (1/4) of the material further crushed to simulate High Pressure Grinding Roll (HPGR) product distributions. The 3mm material was fed to a dry Low Intensity Magnetic Separation (LIMS) machine set at 1000 gauss which collected a magnetic concentrate with the tails being sent to a dry Rare Earth Magnetic Separation (REMS) machine set at 6000 gauss. This collected a magnetic concentrate, a middlings and a tails. All streams were assayed.

Material was weighed initially and all products were weighed, with the difference being dust losses.

Overall dust losses made up approximately 3% of the feed.

The LIMS magnetic concentrate and REMS magnetic concentrate were combined mathematically to give the final product weight recovery and %Fe grade. The REMS middling fraction did not achieve sufficient grade to be included in the calculations.

Results

The results from the dry magnetic separation test work at a 3mm grind size is summarised in Figure 1 (see link at the bottom of the release).

The graph plots the head iron (Fe%) grade vs concentrate iron (Fe%) for the drill core composite samples from the Wonganin Sandstone (blue) and Yampi Member (magenta) from the Hardstaff Peninsula and the Yampi Member (red) from the Isthmus Region.

A total of nineteen (19) samples were collected from the Wonganin Sandstone at the Hardstaff Peninsula. Six (6) were collected from the northern area and a total of thirteen (13) were collected from the southern area. Head iron (Fe%) ranged from 12.5 Fe% to 30.8 Fe% and iron oxide (FeO) ranged from 0.0 FeO% to 8.7 FeO%.

The graph indicates that for the Wonganin Sandstone, a head iron (Fe%) grade of 28% is required to produce a +40% iron pre-concentrate.

A total of seven (7) samples were collected from the Yampi Member at the Hardstaff Peninsula. Head iron (Fe%) ranged from 22.0 Fe% to 51.2 Fe% and iron oxide (FeO) ranged from 0.5 FeO% to 12.4 FeO%. The graph indicates that for the Yampi Member at the Hardstaff Peninsula, a head iron (Fe%) grade of 26% is required to produce a +40% iron pre-concentrate.

A total of twelve (12) samples were collected from the Yampi Member at the Isthmus Region. Head iron (Fe%) ranged from 17.5 Fe% to 50.6 Fe% and iron oxide (FeO) ranged from 0.7 FeO% to 10.3 FeO%. The graph indicates that for the Yampi Member at the Isthmus Region, a head iron (Fe%) grade of 34% is required to produce a +40% iron pre-concentrate.

For the complete Pluton Resources announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PLV-364141.pdf

Tony Schoer
Managing Director
Tel: +61-411-232-711
Pluton Resources Limited