Overland Resources Limited (ASX:OVR) High Grade Mineralisation Extended at the Darcy Zinc Deposit

Perth, July 21, 2011 AEST (ABN Newswire) - Overland Resources Limited (ASX:OVR) is pleased to advise that diamond drilling is progressing very well at the Company's Yukon Base Metal Project. 27 drill holes for more than 5,800 metres have been completed during the past two months as part of the current 10,000 metre drilling programme.

Drilling to date has targeted vertical and lateral extensions of the high grade Andrew and Darcy Zinc Deposits, where mineralisation at both deposits remained open in all directions following the 2010 drill programme.

The Company has received analytical results from the first six diamond drill core holes completed. Two of these holes were drilled at the Darcy Zinc Deposit and four at the Andrew Zinc Deposit.

Darcy Zinc Deposit

Thick zones of significant mineralisation have been intersected at the Darcy Zinc Deposit, with results including:

- 6.3 metres at 9.1% zinc from 9.7 metres, and

- 16.0 metres at 8.0% zinc from 49 metres in DY11-032, and

- 13.0 metres at 4.7% zinc from 111 metres in DY11-033.

The results from hole DY11-032 confirm the trend of the shallow mineralisation at the eastern end of the Darcy Zinc Deposit. The continuing shallow and high grade nature of the mineralisation is particularly encouraging and supports the view that additional drilling along strike is warranted.

The results from hole DY11-033 increase the understanding of mineralisation at depth at the north-western end of the Darcy Zinc Deposit. These results provide the Company with increased confidence that mineralisation persists at depth at this deposit. Additional drilling has been undertaken to test for strike extent while further drilling is planned to target mineralisation at depth.

Analytical results for an additional nine drill holes completed to date at the Darcy Zinc Deposit are pending.

Andrew Zinc Deposit

Drilling at the Andrew Zinc Deposit to test for extensions of mineralisation immediately to the east of the deposit has intersected thick zones of mineralisation including:

- 12 metres at 3.5% zinc from 123 metres and

- 6 metres at 4.0% zinc from 157 metres in AN11-132.

These results provide the Company with encouragement that the proposed open pit may be extended to the east. Further drilling is planned.

At the western end of the Andrew Deposit mineralisation appears to have been truncated by an extended fault structure running oblique to the main zone. Geological modelling is now underway to identify the potential locality of the western offset mineralised block. Additional drill testing to evaluate this offset will then be planned.Analytical results are pending for a further four diamond drill holes completed recently at the Andrew Zinc Deposit

Andrew Northeast Prospect

The Company has undertaken inaugural drill testing of the zinc in soil geochemistry anomaly that extends some 2,000 metres to the north east of the Andrew Zinc Deposit. A total of eight holes have been completed. Analytical results for all holes are pending.

Geological and geochemical information from this area is now being integrated and assessed. Upon receipt of assay results this information will be used to plan additional drill holes

Other Prospects and Ongoing Drilling Programme

There is significant potential to discover new mineralisation at the Yukon Base Metal Project with additional drilling at the known deposits as well as at the highly prospective Riddell and Pinnacle Prospects. Two diamond rigs continue to operate at the Project, with the Company anticipating the completion of the current drilling programme in September.

Yukon Base Metal Project - Overview

The Yukon Base Metal Project covers approximately 120km2 over and around the shallow, high grade Andrew and Darcy Zinc Deposits in the highly prospective and under explored Selwyn Basin of the Yukon Territory, Canada.

Work is well advanced on the technical, economic and environmental components of a feasibility study into the development of the Yukon Base Metal Project. The Company is aiming to submit a mine permitting proposal to the executive committee of Yukon Environment and Socio-economic Assessment Board (YESAB) at the end of 2011. The Yukon Territory is a jurisdiction that is particularly supportive of new mine developments. The permitting process is expected to take between 12 and 18 months with construction commencing shortly after mine permits are issued.

For the complete Overland Resources announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-OVR-549714.pdf

Contact

Hugh A Bresser Managing Director Overland Resources Limited Tel: +61-8-9226-5566 http://www.overlandresources.com