Brisbane, July 28, 2008 AEST (ABN Newswire) - Kangaroo Metals Limited (ASX:KML), a diversified exploration and mining company with projects in North Queensland and Tasmania, would like to inform its shareholders of the current exploration, production, and general operations in North Queensland and Tasmania.
Riverside Alluvial Tin Mine and South Mt Cameron, North East Tasmania:
Production:
KML has commenced full production at the newly acquired Riverside Alluvial Tin Mine with modifications and mine planning completed at the site. Extraction operations continue with over 8000m3 of stockpiled alluvium held on the ROM at any one time. Samples of concentrate have been forwarded to Thaisarco for confirmatory testing and formal contracts are expected to be signed shortly.
Production rates are expected to commence at ten (10) tonnes of concentrate per month utilizing four (4) staff on a 12 hour/5.5 day roster. Production is expected to increase as further process and site efficiencies are introduced.
Applications to government and regional authorities to expand production and convert the site to a 24/7 operation are currently being structured and the outcomes of these will be notified in due course.
Exploration:
KML intends to conduct exploration of tin-bearing gravels in the vicinity of South Mount Cameron in Northeast Tasmania on exploration licenses EL21/2002, EL22/2002 and EL27/2001 during August and September 2008. Activities will be supported by the Riverside Alluvial Tin Mine.
KML will begin exploration in close proximity to the current mining activity at the Riverside operations near the Ringarooma River to the east of South Mount Cameron.
Initial sampling will focus on tailings left behind by Amdex Mining in the 1970s where small-scale operations have previously extracted tin. These tailings cover a significant area to the east of the Riverside operations and are purported to be of reasonable grade and volume.
Further to the south of the Amdex tailings area is an area formally operated as a gravel quarry by Gunns Limited. Gravels similar to those from which cassiterite is extracted at Riverside have been identified. This quarry sits on high ground comprising unworked alluvial terraces overlooking the alluvial flat lands where the Dorset Dredge worked alluvial channels in the past.
To the west of Gunns quarry across the Gladstone Road is the intersection of two waterways, Corduroy and ABC Creeks. Tin-bearing gravels have been identified at both of these locations during drilling activities undertaken by previous explorers within the Ringarooma Valley.
Further to the north of Corduroy Creek is the historically significant Endurance Mine, and to the south of that mine are the Clifton Lead and Watts-Harmons mine.
It has been reported that the Clifton Lead is located beneath. Endurance tailings and was identified in the side of the Endurance mine. Drilling around Watts-Harmons by previous explorers identified tin-bearing gravels which KML intend to explore as extensions to the existing mine on gently sloping lightly wooded country.
KML's data acquired from the due diligence at Riverside has shown significant upgrades from the previous drill results showing up to 785% increase in grade through costeaning over drilling. Based on these findings (shown below), KML will look to target areas in the immediate vicinity and reexamine these alluvial terraces with costeaning at sufficient density to determine an inferred and/or indicated resource.
-------------------------------------------------------Drill Drill Costean Treated Kg Costean VarianceHole Grade m3 Recovered Grade to Drill g/m3 g/m3 Grade-------------------------------------------------------RP4 100 14 409 92.3 225.7 +225%RP3 257 14B 116 53.7 463.0 +180%RP7 202 18 316.6 163.8 517.4 +256%RP8 68 Test Pit 1628 870 534.2 +785%-------------------------------------------------------*Data extracted from Due Diligence and ExplorationSummary for Riverside
Antimony Reward, North Queensland:
The first round of drilling has been completed at Antimony Reward with the results now compiled, analysed and released to market. The second round of drilling at Antimony Reward will commence within two weeks and will seek to extend the ore zone to the east and west, and further delineate to depth.
Soil sampling over the region has also been completed with the samples being submitted to ALS, Townsville. The goal of this sample program is to delineate a parallel structure indicated by previous exploration activities. The laboratory currently reports a 4-5 week turnaround on soil samples with results therefore expected in August.
Stannary Hills, North Queensland:
Soils sampling of Stannary West and Stannary North is now completed with the samples submitted to ALS Townsville for testing. The aim of soil sampling these regions is to test for extensions and parallel structures around the significant producers in the region, which includes Lass O'Gowry, Iona, Ironclad, Silver Lining and Young Australian, to identify possible extensions to these historic mining sites.
Results from ALS Townsville are expected in early August.
Planning for further drilling will be targeted base on the current soil sampling program combined with the aeromagnetic data collected by KML Geoscience over the region.
Mt Ruby (Silver Valley), North Queensland:
Following the aeromagnetic survey of the region, carried out in late June, ground surveys will be undertaken in the coming months to identify the extent of surface expression of the iron ore deposit.
KML will assess the regional topography and geography to identify suitable sites for future exploration at Mt Ruby along with planning the potential extent of any mining lease to be applied to the deposit.
Captain Mine (Silver Valley), North Queensland:
The planned drill program for the historic Captain Mine in Silver Valley has been put on hold to allow exploration resources to focus on the current projects in other areas. KML will endeavour to return to this project in the near future.
Mt Holmes-Mt Carbine Project, North Queensland:
KML will undertake a field survey at Socialist Scheelite and the region surrounding Mt Carbine in early August with a view to fully map the geology, including geophysical mapping, extending south-east of Carbine, to identify the likely carriers of tungsten in the form of scheelite. Soil surveys will then be undertaken to establish surface expression of the mineralization in August and allow exploration planning for future work.
A visit to Mt Holmes is also expected to determine the extent of tungsten mineralization in the form of Wolframite on the southern slopes of Mt Holmes.
A ground survey of the alluvial tin ground along Little Plum Tree Creek and Skull's Lagoon will also be undertaken to define the sampling program expected to commence in 2-3 months time.
Mt Borium, North Queensland:
KML has undertaken a field survey of Mt Borium with the express purpose of identifying the previous exploration soil grid, to confirm drill collar locations and orientation, and identified known sulphidation zones. Additional soil surveys will planned to confirm the previously identified anomalous gold zones and, in conjunction with the geophysics, identify initial drill targets across the site.
Additional Field Surveys, North Queensland:
In addition to the abovementioned, KML staff have also undertaken field surveys of several sites including the Tinto-Too mine site, an historic lead-zinc mine, which shows massive sulphides in an area which represents an extension to the Elizabeth Bluffs region south of Antimony Reward. This site will be noted for future exploration.
"This site highlights the often unforeseen risks geologists take in exploring regions. Exposed mine shafts are common and not unexpected; however, the hillside leading to Tinto-Too appears to have been used as a mortar firing range in WWII by Australian and US forces. Another version of a mining 'boom' we could do without. Careful planning will be needed before returning to this site" stated Dr Brett Teale, Managing Director.
KML Geoscience:
Geophysics flights through KML Geoscience have now been completed across Stannary Hills, Antimony Reward, Mt Borium, Carbonate Creek, West Wolfram, Claret Creek (California), and Silver Valley.
Additional flights across My Holmes, Mt Carbine and Socialist Scheelite will be carried out shortly. Data analysis is now underway with additional exploration planning expected once the processed data is returned. KML is now undertaking client services through KML Geoscience with expressions of interest steadily accumulating. KML will shortly issue an information package to over 500 mining and exploration companies operating across north Queensland, the Northern Territory and Western Australia.
Formal contracts will now be sought from interested parties to commence flights immediately.
Strategic Direction for 2008-2009:
KML will look to commence assembling a complete inventory of minable assets over the next six months with a view to bringing to JORC compliant levels several assets currently held by KML and adding to the inventory through acquisition. KML will initially target an inventory level of 5000 tonnes of Tin Concentrate (SnO2 or Cassiterite) through alluvial assets, with additional Tin inventory beyond this coming from hardrock assets currently under exploration. Antimony assets should also be brought to JORC compliance within the next 12 months. Additional assets including Tungsten, through Socialist Scheelite and Mt Holmes, Copper through the Ewan Project, and Gold through Mt Borium, Maneater Peak and further acquisitions should also be added to the inventory towards the end of the 2008-2009 period.
"KML is very happy with the exploration progress so far with the limited resources we have available. The use of aeromagnetic and radiometric data, paired with soil sample results should enable efficient targeting of our programs and limit the amount of labour and further resources required to achieve our goals", stated Dr Brett Teale, Managing Director of Kangaroo Metals.
"The commencement of operations in Tasmania and KML Geoscience are expected to generate revenue to expand the exploration programs in all areas over the coming months. We have some significant targets, which if proven up, will see the company fully diversified from our initial tin focus and expand our mining operations into North Queensland."
Note:
This report is based on and accurately reflects information compiled by Dr Brian New, PhD, who is a fulltime employee of the Company. Dr New has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Brian New consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Contact
Dr Brett Teale
Managing Director
WEB: www.kangaroometals.com.au
TEL: +61-7-3161-0397
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