Brisbane, Feb 19, 2009 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 position of general operations in North Queensland and Tasmania.
General Operations
KML became aware that a financial shortfall would be forthcoming in November 2008 following the failure to conclude potential sales agreements as a result of the economic downturn. KML immediately began winding back general operations and staff numbers to minimize further expenditure.
KML immediately began discussions with investment entities to address the financial position of the Company and establish a basis for recapitalization and reentry of the Company back onto the ASX Board.
Exploration and Production Assets
Antimony Reward (EPM14951)
The diamond drilling program commenced in July 2008 was completed; however, the core samples remain to be analyzed until the value of the assets has been established by the incoming Board.
Stannary Hills (EPM14875) The soil geochemistry program completed across Stannary West has excluded this region from further investigation, with all further work to focus on Stannary Central and Stannary East. The reverse circulation program at Stannary East will be assessed by the incoming Board to determine the extent of work required.
Silver Valley/Mt Ruby (EPM14880)
Additional ground surveys to identify further surface float and geological features across the Mt Ruby extensions has indicated the potential for further extensions is high and a follow-up program with reverse circulation drilling will be necessary. A program will be costed to assess the minimal requirements to achieve a JORC compliant statement across this project.
Socialist Scheelite (EPM14872)
The soil geochemistry program across a large area heading south-west of Mt Carbine was commenced but was wound back in late October 2008 until further capital could be identified.
Little Plum Tree Creek (EPM14871)
The sampling program along Little Plum Tree Creek has identified alluvial tin bearing banks and terrace which remain unworked and may be suitable to form part of a multi-site alluvial processing program in the region. Further work to fully assess this site and additional areas at Skull's Lagoon and Station Creek for further inventory.
West Wolfram (EPM14949)
Review of the geophysics and historic soil geochemistry results across the southern regions of this tenement has identified a series of coincident base metal anomalies attributable to the same geological formation which hosts the Wolfram Camp Tungsten deposit.
California Creek (EPM14877)
The sampling program undertaken at California Creek as part of the due diligence towards acquisition of the California Creek Alluvial Tin Mine showed that additional alluvial tin resources can be identified off lease on EPM14877.
Final analyses of the concentrate samples, collect during due diligence, for tin metal (Sn%) content showed an unexpected distribution of heavy minerals showing an average of 13% SnO2 content versus the expected 85-95% SnO2 observed by previous explorers from parallel creek systems.
On this basis, and its impact on production costs, revenue and therefore return on investment, the agreement to acquire of the Mining Leases was terminated; however, reassessment of the tenement and the impact of additional alluvial resources is necessary.
Riverside Alluvial Tin Mine, Tasmania
Riverside was placed on care and maintenance in November and negotiations to wind-back the agreement to acquire the Riverside Mine have been ongoing and are expected to be finalized shortly.
Exploration Expenditure
Expenditure on the tenements, retention of tenements and the potential value gained through sale of some assets will be assessed in the coming quarter. Expenditure on the remaining tenements will be pegged to the Department of Mines and Energy Queensland requirements and reported to the shareholding as soon as these numbers become available.
Contact
Dr Brett Teale
Managing Director
WEB: www.kangaroometals.com.au
TEL: +61-7-3161-0397
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