Anglo Australian Resources Nl (ASX:AAR) Commence Immediate Copper/Zinc Drilling Program At Koongie Project

Perth, May 2, 2011 AEST (ABN Newswire) - Anglo Australian Resources Nl (ASX:AAR) is pleased to announce the immediate commencement of a reverse circulation drilling program of approximately 3000m that will test six new copper-zinc targets at its Koongie Project.

The drilling program is the culmination of a thorough program of assessment and selection of multiple targets based on extensive geological, geochemical and geophysical information.

Success in this program would assist in the Company's efforts to develop the Sandiego and Onedin Deposits which have been the focus of its efforts in recent years.

The Onedin and Sandiego deposits are both volcanogenic massive sulphide ("VMS") style lead-zinc-copper deposits. These stratabound deposits are hosted within carbonate-rich sediments (Mimosa Unit) in a predominately volcanic sequence. VMS-style deposits worldwide frequently occur as clusters, and there is consequently opportunity to discover additional deposits at the Koongie Project. Alteration associated with the mineralisation is typified by chlorite-talc, disseminated magnetite in rhyolites and finely banded quartz-magnetite units. This alteration at both Onedin and Sandiego is reflected in aeromagnetic data as localised magnetic anomalies. Several similar anomalies are located elsewhere in the Mimosa Unit and some will be targeted by the drilling program.

Sulphide mineralisation at both deposits is conductive and is reflected as ground electromagnetic (EM) conductors. Since 1991 several EM programmes over about 90% of the target Mimosa Unit have generated multiple anomalies. Many such anomalies have not been followed-up by drill testing, as activities focused on the two defined deposits of Sandiego and Onedin. Multiple targets defined by combined EM and magnetic anomalies, as described below, will be tested in the 2011 drilling program.

Assay results from this drilling program will be released progressively as they become available during the June Quarter.

HIGHWAY

The Highway Prospect, located midway between Sandiego and Onedin, is a coincident magnetic and EM anomaly corresponding to sub outcropping manganiferous, calcareous sediments of the Mimosa Unit. Rock chip assays range up to 600ppm Cu. No previous shallow RAB or deeper RC drilling has been recorded for this area. Three holes are planned for this anomalous zone which extends for over 1km.

HANGING TREE NORTH

The Hanging Tree Prospect corresponds to a copper and zinc anomalous gossan within the Mimosa Unit and coincident soil geochemical, EM and magnetic anomalies. Previous shallow drilling into the gossan returned 11m @ 0.1% Cu from 11m and 8m @ 0.18% Cu from 54m. These shallow intersections are interpreted to have come from a zone of near surface depletion. One diamond hole testing the same gossan intersected weak zinc mineralisation (13m @ 0.2% Zn) but is interpreted to have deviated to the north of the main target One hole is planned 200m to the south of previous drilling.

HANGING TREE SOUTH

The Hanging Tree South Prospect corresponds to a copper and zinc anomalous cherty gossan within the Mimosa Unit, a strong coincident base metal soil anomaly and coincident EM and magnetic anomalies. Surface rock chip values range up to 0.37% Cu and 1.27% Zn. Only one of three previous drillholes partially tested the target below the zone of probable near surface depletion. It intersected weak base metal mineralisation within a wide zone of chlorite pyrrhotite schist containing up to 25% sulphides (pyrite and pyrrhotite). The mineralised zone is strongly magnetic. Chlorite-amphibolite alteration in this hole is similar to alteration observed on the northern limits of the Sandiego Deposit. One hole is planned to test the host stratigraphy 200m south of the previous sulphide intersection.

PARMELIA

The prospective Mimosa Unit contains a coincident magnetic anomaly and a weak to moderate EM anomaly 1.7km north of Onedin and 1km west of the Rockhole Prospect where it changes strike from north easterly to easterly. A gossan is mapped at the southern end of the EM anomaly. No previous drill testing has been undertaken and three holes are planned in the 2011 program.

CAPRICORN

The Capricorn Prospect is located 400m north of the Hanging Tree Prospect. Outcrops of chert suggest the coincident EM and magnetic anomaly which defines this target occurs within the Mimosa Unit. No previous drilling is known from this area. Two drill holes are planned in the 2011 program to test for sulphides below the interpreted depletion zone.

SANDIEGO EAST

A new copper-rich lode is interpreted to exist 50 -100m north east of the main Sandiego Resource and will be tested in the 2011 program.. Drill hole. SRCD076 (part of the 2010 drilling program) intersected 12m @ 1.68% Cu 50m east of the interpreted position of the target lode. Geological logging and interpretation suggests that a new copper lode has been intersected on the eastern flack of an anticline. This mineralisation is tentatively correlated with an outcropping copper anomalous gossan on the eastern side of the Sandiego Hill and an intersection of 4m @ 0.5% Cu in drillhole SND6. An EM anomaly approximately corresponds to the interpreted mineralised lode. Three holes are planned.

BACKGROUND

The large Koongie Copper Zinc Project of 300 square kilometres is located 25 km SW of Halls Creek in the North East Kimberley region of Western Australia, straddling the Great Northern Highway. The port of Wyndham is located 400km north of the project. Anglo Australian Resources NL obtained an interest in the project in 1990 and moved to 100% ownership in 2002. Between 2006 and 2010 it completed three diamond and RC drilling programs for resource delineation and metallurgical testing mainly at the Sandiego deposit, but also at the Onedin Deposit.

A Scoping Study completed by consultant Minesure in February 2011 concluded that development of the Sandiego Deposit by open pit and underground mining methods using an onsite concentrator and off-site smelting is potentially viable(see announcement to ASX on 17th February 2011).

For the complete announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/540151.pdf

Contact

Angus Pilmer Executive Director Tel: +61-8-9382-8822 Peter Komyshan General Manager Exploration Tel: +61-8-9382-8822 http://www.anglo.com.au