TUC Resources Limited (ASX:TUC) Commences Second Phase Drilling at Stromberg Heavy Rare Earth Prospect

Perth, Oct 4, 2011 AEST (ABN Newswire) - TUC Resources Limited (ASX:TUC) is pleased to announce the commencement of a second phase of drilling at its Stromberg Heavy Rare Earth Prospect.

Drilling will initially target a +2km prospect strike length, build on identified coherent zones of mineralisation in previous drilling, and test for possible 'feeder' zones to mineralisation.

RC Drilling commences at the Stromberg Heavy Rare Earth Prospect (Daly Project);

Following significant results achieved from re-assay of RC and rock-chip material with 95% of REE being Heavy Rare Earths (HREE) (see TUC ASX Announcement dated 25th August 2011), a second phase of RC drilling has commenced at the Stromberg Prospect.

Important points at the Stromberg Prospect include:

- Stromberg is rich in the critical rare earths Dysprosium and Yttrium;

- Xenotime mineralogy potentially offers a simple processing/development route (see TUC ASX Announcement 14th September 2011);

- The shallow, tabular mineralisation intersected to date offers the possibility for more rapid development of the prospect.

Planned second phase RC drilling will firstly, test the highly promising 2.3km radiometric and geochemical anomaly, secondly, infill around and between two defined zones of coherent mineralisation identified during first phase drilling, and lastly, test possible 'feeder' structures to mineralisation.

Figure 1 (see link at the bottom of the release) also shows the immediate district exploration potential by way of similar geophysical response (radiometrics) and repetition of rock units and trends. Soil and rock chip sampling is planned at these areas whilst the current phase of drilling is being undertaken.

Stromberg Prospect - TUC Building on Excellent Results

The first phase of RC drilling at the Stromberg Prospect, along a 2.3km long radiometric and geochemical anomaly, defined a shallow accessible and coherent zone of mineralisation on two sections 600 metres apart.

Excellent results include 7m @ 1% Total Rare Earth Oxide (TREO) from surface. This result is considered excellent because 95% of the rare earth content is heavy and valuable rare earths. Particularly, the prospect is rich in the critical rare earth element Dysprosium (7.5%/TREO) (see TUC ASX Announcement dated 25th August 2011 for a full breakdown of results).

A portable Niton XRF unit has been acquired to allow a more efficient and rapid response to mineral intercepts and geological changes.

TUC are excited to be back on the Stromberg Prospect with another round of drilling and are looking forward to receiving results.

Work continues to assess the broader district HREE potential.

For the complete TUC announcement including figures, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-TUC-559958.pdf

Contact

Mr Ian Bamborough Managing Director TUC Resources Ltd Tel: +61-8-8947-0944 Email: ibamborough@tucresources.com.au