Celamin Holdings NL (ASX:CNL) Results of First 6 Drill Holes from Chaketma Drilling

Melbourne, Dec 5, 2011 AEST (ABN Newswire) - Celamin Holdings NL (ASX:CNL) has received the following report from Celamin Ltd;

Celamin Ltd has completed a program of drilling in the Chaketma Exploration Permit in Northern Tunisia held and funded jointly (50%:50%) with Tunisian Mining Services SARL (TMS).

Analytical results have been received for the first 187 samples from 6 (six) of the 12 (twelve) drillholes recently completed as shown on the attached plan and listed in the appendix.

The thickest intercept at Gasaa El Kebira in hole 3 is 24m at 19.8 % P2O5. at a 10% P2O5 cutoff grade (cog). Hole 8 at Sidi Ali Ben Oum Ezzine is the next thickest intercept with incomplete results showing 16.4 m at 20.75 % P2O5 at the same cog from 15.6m Downhole. The table (see link at the bottom of the release) summarises the results received to date.

Celamin and TMS have completed a 12 hole (1,200m) diamond core drilling program and a 600m trenching program. The trenching is complete and sampling is currently underway. The drilling is focused on the Gasaa El Kebira part of the EP initially. This prospect covers more than 2.0 km2. It also included drillholes into two other areas, Kef El Louz and Sidi Ali Ben Oum Ezzine.

HQ drillcore from the drillholes was half split and sampled after geological logging generally at 1-m intervals or to lithological boundaries. These samples were crushed and riffle split and 500g splits were sent to ALS Global at Seville in Spain. Here pulps were prepared using internal laboratory procedures and samples were sent to other ALS laboratories for analysis for major oxides using method ME-XRF06m and for trace elements using method ME-ICP61.

Note 1: Intercepts at 10% P2O5 cog and 20% P2O5 including internal waste of up to 2m at <20% P2O5 cog

Note 2: Vertical Holes - Downhole length, true thickness not known.

Note 3: Results in Holes 4-7 are all based on ALS analyses. Hole 8 is based on Tunisian Industry Laboratory analyses.

Note 4: Tunisian Industry Laboratory analyses for CaO and P2O5 are generally 2-5% lower than ALS analyses for CaO and P2O5in check samples from Hole 3.

The initial drilling sample phosphate mineralisation grade and thickness results are promising, but the observed geology of the phosphate mineralisation at Chaketma is different to that at Bir El Afou and further work is planned to test process this material to a saleable product. This work will test whether a +30% P2O5 product can be made from the generally +20% P2O5 drill intercepts. This metallurgical test work is being undertaken currently.

The executive director of Celamin Holdings Mr David Regan commented: " These are excellent and highly encouraging results from this preliminary program and fully justify our continued faith in our Tunisian Phosphate Projects. We are keen to get the outstanding results from the remainder of the drilling and trenching, as well as the metallurgical program currently underway. The grade and thickness in particular support the sorts of targets we developed in the Bir El Afou PFS."

Planning of the next phase of drilling at Chaketma is underway. A further 12 hole program is planned to test Kef El Louz and Gassaat Ezzerbate. This first pass program is designed to determine the depth of over burden and the thickness and grade of the phosphate zone, before committing the to the resource definition phase of the exploration program.

For the complete Celamin Holdings announcement including tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-CNL-366333.pdf

Contact

David Regan Executive Director Celamin Holdings NL Phone: +61-3-9692-7222