Vector Resources Limited (ASX:VEC) Identified Exciting New Gold Targets At Mt Dimer

Perth, Aug 31, 2011 AEST (ABN Newswire) - Western Australian focussed resources company Vector Resources Limited (ASX:VEC) ("Vector" or "the Company") is pleased to announce it has received "exceptional" assay results for the geochemical soil auger program over M77/427 and M77/428, which form part of the Company's flagship Mt Dimer project.

The results are highly compelling and have confirmed to the company that Mt Dimer has substantial potential for extensions to known mineralisation within historic mined areas. In addition to this several new Greenfield gold targets have been discovered. A total of 22 highly prospective target areas have been defined across M77/427 and M77/428 as detailed in the map below (see link at the bottom of the release).

The values surrounding the historical mine workings clearly indicate the potential extensions of historical pits along strike to the north and south. In particular targets circled in BLACK indicate a potential significant extension of Kali West, LO1, LO2 and LO3 pits to the north and Golden Slipper and LO3 to the south. Targets circled in WHITE represent newly discovered gold anomalies and have a strong structural correlation with structural trends.

Vector Resources Chairman Damien O'Reilly said "The results of the auger program are extremely compelling and attaining several results of 825 to 3360 ppb from surface far exceeded our expectations. This is indicative of the world class potential of the Mt Dimer project."

About the Auger Program

The auger program consisted of more than 3,447 shallow holes covering the entire project area.

100m x 40m grid over M77/427 and M77/428; and 200m x 200m spaced grids over tenements M77/957, M77/958 and M77/965.

The results received to-date (M77/427 & M77/428) have confirmed the geological team's belief that Mt Dimer has significant upside through the identification and exploration of new Greenfield targets and extensions of known mineralisation. Work has commenced on designs for a RAB drilling program to test these targets. The results of this auger program show clear correlations with structural features identified in an aeromagnetic survey carried out last year.

Phase 1 Drilling at Mt Dimer is Currently Underway

Approval for a reverse circulation (RC) drill program consisting of 147 drill holes totalling 14,770 metres was received in early August 2011. The first stage of this drill program targeting priority one locations is currently underway with 2,834 metres drilled to-date. This program was designed to explore the potential extension of the historical pits and expand the understanding of the near mine geology and mineralisation. Additional anomalies and intercepts previously identified by shallow RAB and RC drilling will be investigated as part of this program. Several anomalies considered as new targets will now be explored based on this new data.

Success with New Program

After an extensive review of historic data the previous geochemical surface sampling was considered inadequate. The original work was undertaken at surface depths of approximately 30 centimetres and failed to penetrate the silcrete layer, impeding the geochemical imprint of the calcrete zone, which is an indicator of deeper geology. Over time with the rise and fall of the water table, minerals that are indicative of subsurface geology are deposited within calcrete layers. The previous soil testing was did not always penetrate to the calcrete layer hence the picture was incomplete.

The diagrams below details the original geochemical work in contrast to the newly completed program utilizing auger drilling to depths of up-to 1.8 metres. This allowed the penetration of the silcrete layer to obtain samples where potential leaching had settled. This has resulted in the substantial and significant additional gold targets being identified as detailed in the imagery overleaf:

Significant Upside

Mt Dimer has the potential for new Greenfield mineralisation to be discovered, with encouraging fundamentals that include:

- Serious upside indicators from new program to historic records;

- 17 new targets identified;

- Clear indication of extensions of historical pits to the north and south along strike;

- A definite structural correlation with geochemical results and aeromagnetic surveys; and

- Gold ppb values hundreds of factors above anticipated results.

For the complete Vector Resources Limited announcement including figures and maps, please view:
http://media.abnnewswire.net/media/en/docs/69289-ASX-VEC-554938.pdf

Contact

Vector Resources Limited P: +61-8-6188-7800 F: +61-8-9481-8772 Email: contact@vectorresources.com.au http://www.vectorresources.com.au