Pluton Resources Limited (ASX:PLV) Received Assay Results For The Isthmus Region And Hardstaff Peninsula

Melbourne, Dec 22, 2010 AEST (ABN Newswire) - Pluton Resources Limited (ASX:PLV) ("Pluton") is pleased to announce an upgrade of the Inferred 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

- Existing Inferred Mineral Resource of 103Mt @ 45% Fe at a cut-off grade of 30% Fe (ASX announcement, September 14th, 2010) has been upgraded to 107 Mt @ 44% Fe using a cut-off grade of 30% Fe.

- The Inferred Mineral Resource for the Yampi Member includes a higher grade component of 60 Mt @ 51 % Fe using a cut-off grade of 50% Fe.

Wonganin Sandstone

- The existing Inferred Mineral Resource of 349Mt @ 21% Fe (ASX announcement, September 14th, 2010) has been upgraded to 376 Mt @ 21% Fe.

Based on results from beneficiation testing by the CSIRO, the new Inferred Mineral Resource estimate could produce up to 155 Mt of concentrate at > 66% Fe.

Inferred Mineral Resource

An updated resource estimate for the Hardstaff Peninsula at Irvine Island has been completed by AMC Consultants Pty Ltd, Melbourne. Drilling is continuing at the project and further mineral resource upgrades will be announced as drilling progresses.

The total Inferred Mineral Resource for the Hardstaff Peninsula has been increased to 483 Mt based on updated resource estimates for both the Yampi Member and Wonganin Sandstone. The existing Yampi Member Inferred Mineral Resource of 103 Mt @ 45% Fe, at a cut-off grade of 30% Fe (ASX announcement, September 14th, 2010) has been upgraded to 107 Mt @ 44% Fe using a cut-off grade of 30% Fe.

This also includes a higher grade component of 60 Mt @ 51% Fe using a cut-off grade of 50% Fe for the Yampi Member.
In addition, the Company is also pleased to announce an upgrade of the Inferred Mineral Resource for the Wonganin Sandstone to 376 Mt @ 21% Fe.

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).

The current Inferred Mineral Resource does not include outcropping iron mineralisation from the Isthmus Region of Irvine Island. It is anticipated that a maiden mineral resource estimate for the Isthmus Region will be compiled during first quarter 2011.

Ongoing Exploration

Isthmus Region

The Phase II drilling program at the Isthmus Region has progressed steadily since mobilsation of the first diamond drill rig to the area in late August 2010 (ASX announcement, August 23rd, 2010). A total of nineteen holes at seven sites have been completed for a total advance of approximately 2,500 metres. Diamond drilling is being completed for resource definition, metallurgical test work, hydrological and environmental purposes at the Isthmus Region.

Final assay results have been received from three diamond drill holes at the Isthmus Region.

Drilling is currently underway on drill hole 10DDH052 in the eastern area of the Isthmus Region at site H. Assays are pending for a total of seven additional diamond holes that were completed for resource definition.

The second drill rig currently located at the Hardstaff Peninsula will mobilise to the Isthmus Region in Q1 2011, to further accelerate the drilling program. Drilling with the second rig will focus on the western area of the Isthmus Region.

A maiden resource estimate is scheduled to be released for the Isthmus Region late in Q1, 2011.

Hardstaff Peninsula

The Phase II drilling program at the Hardstaff Peninsula has progressed steadily during Q4, 2010. A total of eight diamond holes at five individual sites have been completed for a total advance of approximately 1,400 metres. Diamond drilling has been completed for resource definition, metallurgical test work, hydrological and environmental purposes at the Hardstaff Peninsula.

Key achievements of the Hardstaff Peninsula drilling program to date are:

- Extend the existing Inferred Mineral Resource further to the north (defined by drill holes 10DDH023, 10DDH024, 10DDH025 and 10DDH027).

- Test the potential of iron mineralisation developed between the Hardstaff Peninsula and Isthmus Region in the Wonganin Sandstone and Yampi Member (drill hole 10DDH030).

- Commence closer spaced infill drilling at the southern area of the Hardstaff Peninsula (drill holes 10DDH036, 10DDH045 and 10DDH048).

- Provide a bulk sample of PQ size diamond drill core for metallurgical test work (drill hole 10DDH039).

Final assay results have been received from three diamond drill holes at the Hardstaff Peninsula.

Comments

Managing Director, Tony Schoer said: "We continue to make progress with our work programs at the Irvine Island Project as we advance our pre-feasibility study. Our focus in the first quarter of 2011 will be to relocate the second diamond drill rig from the Hardstaff Peninsula across to the Isthmus Region as soon as practical to enable us to accelerate our resource definition program.

We continue to be pleased with the results of our intersections to date from both the Hardstaff Peninsula and Isthmus Region. It is particularly encouraging that we have intersected a significant interval of iron with grades approaching 63% Fe located near surface in drill hole 10DDH032 at the Isthmus Region. This result confirms our belief that we are able to produce a readily marketable product from the area with the only impurity of any significance being silica.

We also look forward to releasing our maiden resource estimate for the Isthmus Region in late first quarter 2011".

For the complete Pluton Resources announcement including tables and figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64871-ASX-PLV-347920.pdf

Contact

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