Pluton Resources Limited (ASX:PLV) Announce Resource Update For Isthmus Region On Irvine Island

Melbourne, June 6, 2011 AEST (ABN Newswire) - Pluton Resources Limited ("Pluton") (ASX:PLV) are pleased to announce a maiden Inferred Mineral Resource reported in accordance with the JORC Code, for the Isthmus Region on Irvine Island incorporating the latest available Phase II drilling results.
HIGHLIGHTS

- Yampi Member maiden Inferred Mineral Resource of 17 Mt @ 32% total iron (no cut-off grade applied).

- Maiden Inferred Mineral Resource is delivered in conjunction with the pre-feasibility study.

Inferred Mineral Resource

An initial Inferred Mineral Resource estimate for the Isthmus Region at Irvine Island has been completed by AMC Consultants Pty Ltd, Melbourne. Drilling is continuing at the Isthmus Region with two diamond drill rigs operating on a double shift basis. The initial Phase II drilling program at the Isthmus Region is due for completion in June 2011. A further updated mineral resource estimate incorporating the diamond drilling results not included in the current mineral resource estimate is scheduled to commence in July 2011.

The maiden Inferred Mineral Resource for the Isthmus Region currently stands at 17 Mt @ 32 % total iron (no cut-off grade applied).

Ongoing Exploration

Isthmus Region

Due to the constraints of the rugged surface topography, the number of sites that can be accessed for drilling at the Isthmus Region using the Universal Drilling Platform has been restricted. This in conjunction with the folded nature of the mineralisation has limited the ability of the initial drilling program to adequately define the zones of high grade hematite mineralisation that were sampled and intersected near surface in a number of the diamond drill holes.

After completion of the current Isthmus drilling program, a review of the surface mapping, sampling and additional diamond drilling required to further assess the high grade iron potential and convert the initial Inferred Mineral Resource into higher confidence Mineral Resource category will be undertaken.

Commencement of additional exploration activities including diamond drilling is currently scheduled for Q4 2011.

To date, a total of thirty-nine holes at eighteen sites have been completed for a total advance of approximately 5,563 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 the following diamond drill holes at the Isthmus Region and are summarised in the following tables.

Drilling is currently underway on drill holes 11DDH084 and 11DDH086 in the western area of the Isthmus Region respectively.

Comments

Managing Director Tony Schoer said: "The results of our prefeasibility study to date have been based on the Ore Reserve defined at the Hardstaff Peninsula with an initial open-cut mine life of eleven years in Stage 1. This does not include any of the Inferred Mineral Resources currently defined at the Isthmus Region as this cannot be included in the PFS assessment in accordance with the JORC Code".

"It is our intention to undertake further diamond drilling, metallurgical test work and technical studies where appropriate, with the aim of converting a significant proportion of the current Inferred Mineral Resource into higher confidence Mineral Resource categories at the Isthmus Region".

"Despite the overall iron grade estimate being lower than what we originally anticipated, we may be able to define a small, higher grade tonnage at the Isthmus after we complete additional exploration later in the year. Drop tower test results have shown that we could produce a suitable lump:fines product".

Alternatively the initial metallurgical test work indicates that we can beneficiate the ore at the Isthmus Region into a pre-concentrate grading a minimum of 40% iron using dry magnetic separation. This material, which may include zones of higher grade material, could be readily blended with ore from the Wonganin Sandstone and Yampi Member at the Hardstaff Peninsula to produce a high quality concentrate by third party beneficiation in Asia".

For the complete announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/355886.pdf

Contact

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