Pluton Resources Limited (ASX:PLV) Announce Irvine Island Indicated Mineral Resources

Melbourne, April 8, 2011 AEST (ABN Newswire) - Pluton Resources Limited ("Pluton") (ASX:PLV) are pleased to announce an 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 153 Mt @ 34% total iron and 39.8% weight recovery (at a minimum 10% cut-off grade) and includes 54 Mt @ 51% total iron and 52.5% weight recovery above a 50% iron cut-off.

- Wonganin Sandstone Indicated Mineral Resource is 337 Mt at 21% total iron.

- The global Indicated and Inferred Mineral Resource tonnes reported in accordance with the JORC Code, now stands at 547 Mt for the Hardstaff Peninsula, an increase of 64Mt.

- Approximately 90% of the Mineral Resource (490 Mt) reported in the Indicated Mineral Resource category.

- Mineral Resource upgrade is delivered as part of the ongoing pre-feasibility study due for completion in May 2011.

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 with two diamond drill rigs operating on a double shift basis. A maiden mineral resource estimate for the Isthmus Region is due for completion in May 2011.

The existing Inferred Mineral Resource for the Hardstaff Peninsula (ASX announcement, December 22nd 2010), has 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 153 Mt @ 34% total iron and 39.8% weight recovery, at a cut-off grade of 10% total iron.

This also includes a higher grade Indicated Mineral Resource component of 54 Mt @ 51% total iron and 52.5% 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 Indicated Mineral Resource for the Wonganin Sandstone of 337 Mt @ 21% total iron (no cut-off grade applied).

The global Indicated and Inferred Mineral Resource tonnes reported in accordance with the JORC Code, now stands at 547 Mt for the Hardstaff Peninsula, an increase of 64Mt.

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 (see link at the bottom of the release).

The current 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 May 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 thirty-nine holes at fifteen sites have been completed for a total advance of approximately 4,590 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 twelve diamond drill holes at the Isthmus Region and are summarised in the following tables (see link at the bottom of the release).

Drilling is currently underway on drill holes 11DDH074 and 11DDH075 in the eastern and western areas of the Isthmus Region respectively.

A maiden resource estimate is scheduled to be released for the Isthmus Region in May, 2010.

Hardstaff Peninsula

The Phase II drilling program at the Hardstaff Peninsula has been temporarily suspended to enable both diamond drilling rigs to complete the planned drilling program at the Isthmus Region. To date, a total of thirty-seven diamond drill holes for a total advance of approximately 7,859 metres have been completed at the Hardstaff Peninsula. Diamond drilling has been completed for resource definition, metallurgical test work, hydrological and environmental purposes at the Hardstaff Peninsula.

Comments

Managing Director Tony Schoer said: "The Mineral Resource has been updated with the conversion of approximately ninety percent of our ore body at the Hardstaff Peninsula into Indicated Mineral Resources. The Project continues to demonstrate that it has the potential to develop into a significant iron ore project".

"The assaying and metallurgical test work from the Hardstaff Peninsula has shown that the Yampi Member contains a mixture of magnetite and hematite mineralisation, while the overlaying Wonganin Sandstone contains mostly hematite with subordinate magnetite. Metallurgical test work has shown that we can produce a dry pre-concentrate at a coarse grind size of 1mm that can be readily beneficiated into a high quality concentrate".

Metallurgical test work to date has shown that the magnetite mineralisation can be upgraded to a 69% Fe product using conventional magnetic separation. Metallurgical test work on the hematite mineralisation has shown that a 64% Fe concentrate can be produced at a grind size of 250 microns using gravity separation methods. We await final results of metallurgical test work on the hematite using magnetic separation and reverse flotation"

The drilling results to date from the Isthmus Region indicates that we are likely to define both a saleable lump grade product, and additional material that we could beneficiate into a higher value end product along with the Hardstaff ore"

For the complete Pluton announcement including tables and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/353174.pdf

Contact

Mr. Tony Schoer Managing Director and Chief Executive Officer Pluton Resources Limited Mob: +61-411-232-711 Email: tschoer@plutonresources.com