Commander Resources Ltd.
TSX VENTURE : CMD

Commander Resources Ltd.

August 19, 2010 09:21 ET

Commander Extends Malrock Gold Zone With Initial Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2010) - Commander Resources Ltd. (TSX VENTURE: CMD) has expanded the size and potential of the Malrok Zone with results from the first nine holes received from the 19 hole drill program completed as part of the Baffin Island gold project, Nunavut. Encouraging gold mineralization included assays as high as 7.65 g/t gold over 3.24 metres, and 5.9 g/t over 2.9 metres. Significant results are tabled below. The intersections, combined with results from previous drilling, point to good exploration potential further to the east. Only a small percentage of the large, 3 km diameter Malrok syncline has been tested by drilling to date.

The 2010 program was designed to follow up results from the 2004 campaign in which significant gold mineralization was discovered in silicate iron formations extending to surface. Results from the first nine holes of the 2010 program (MAL-10-40 through 48), in conjunction with previous drill results from 2004, demonstrate the potential for one or more continuous mineralized zones within the Malrok structure. As expected in this type of gold system, variable grades and thicknesses were intersected. 

Holes MAL-10-45 and MAL-10-46 were drilled 35 and 95 metres respectively, down-dip from hole MSD-04-29, which intersected 9.86 g/t over 4.54 metres in the same rock unit. MAL-10-42, a further 200 metres to the east, indicates the favorable target zone extends out under Malrok Lake as expected. Hole MAL-10-47, drilled 75 metres to the south of MAL-10-45 and 100 metres from MSD-04-29, confirms that the mineralized unit is continuous and extends an unknown distance to the south and east. Seven of the remaining 10 holes for which assays are awaited tested the south-east extension over a further 500 metre strike length. 

Drill Hole ID From (m) To (m) Width (m) Gold Grade (g/t)
MAL-10-42 85.25 88.00 2.75 2.05
  including 86.90 88.00 1.10 3.18
MAL-10-44 (upper IF) 26.65 28.29 1.64 1.45
          (lower IF) 43.66 49.08 5.42 2.02
MAL-10-45 (upper IF) 34.26 37.50 3.24 7.65
  including 36.04 37.50 1.46 16.28
          (lower IF) 59.62 66.42 6.80 2.18
MAL-10-46 (upper IF) 48.36 49.40 1.04 2.88
          (lower IF) 70.24 74.98 4.74 2.28
  including 71.84 74.48 2.64 3.19
MAL-10-47 (upper IF) 44.18 47.05 2.87 5.90
  including 45.22 47.05 1.83 8.64
          (lower IF) 63.15 63.65 0.50 14.40
MAL-10-48 (upper IF) 35.95 41.44 5.49 1.94

More detailed geological interpretation, including representative cross-sections, will be provided when all results have been received and reported.

Detailed locations of all holes and the complete table of the current assay results are posted on the company's website: (www.commanderresources.com). 

Malrok is only one of numerous gold zones and prospects on the 140 kilometre Bravo greenstone belt, which is wholly owned by Commander Resources and is subject to a $20 million Farm-in and JV agreement with AngloGold Ashanti. AngloGold is funding the 2010 program on Baffin, highlighted by drill programs at Malrok and at Kanosak. 

Drilling commenced on Malrok on May 21, 2010 to test for the extensions of gold bearing formations discovered by drilling in 2004. Four holes were drilled through the ice of Malrok Lake, and then drilling continued around the lake, on the north and south sides, to examine structural targets until completion of the program on July 25. A total of 3,595 metres were drilled at Malrok.

Previous drilling in 2004 identified two gold bearing iron formations on the south limb and one on the north limb. Thirteen holes were drilled on Malrok South, three were drilled on Malrok North, and two crossed the axis from north to south. 

The 2010 drill plan was intended to include at least 10 holes on Malrok Lake. However, only four holes were able to be completed due to the spring break-up occurring one month early this year, so not all of the planned targets were tested this season. The four holes drilled on the lake, MAL-10-40 to MAL-10-43, encountered narrow intervals of the silicate iron formations, locally carrying gold within a zone of complex folds and faults. A new, deeper sulphide iron formation, which is a favourable host rock for gold, returned low values where drilled. Locating where this thickened lower iron formation unit occurs within a favorable structural setting could open up additional potential.

As reported in the Company's news release dated August 12, 2010, results are awaited from 13 holes completed as the first test of the Kanosak prospect. Geophysical work is continuing there. A crew has arrived at site and has started work on an expected 30 to 40 line-km Induced Polarization survey in preparation for continuation of the drill program in 2011.

The 2010 program is being funded by AngloGold Ashanti as part of the option agreement announced in September, 2009. The program is being managed and overseen by Mr. Alan Sexton, P.Geol., of GeoVector Management Inc. Mr. Sexton is the Qualified Person, as defined by National Instrument 43-101, for this project. The QA/QC protocol is being managed by GeoVector.

QA/QC Procedures

The quality assurance / quality control (QA/QC) procedures for the 2010 drilling program completed by Commander are consistent with those followed since 2006 and are described below.

NQ drill core was logged and all pertinent geological / geotechnical information recorded. The drill core was then sawn in half, with one half bagged, labeled and sent for assay; the remaining half was placed in core boxes as a permanent record and is stored on the project site. Core sample size varied from 0.5 to 1.0 metres in length. All samples were transported to TSL Laboratories in Saskatoon, Saskatchewan for crushing, pulverization and analysis.

Core samples are crushed using a primary jaw crusher to minimum 70% passing 10 mesh. A finer crush is then obtained through a rolls crusher to a minimum 95% passing 10 mesh. The equipment is cleaned between each sample with compressed air and brushes. A representative 1000 gram split sample is obtained by passing the entire reject sample through a riffler, and by alternating catch pans before taking the final split. The remaining reject material is returned to a labeled bag and stored. The 1000 gram sub-sample is pulverized to a minimum 95% passing 150 mesh. The homogenized sample is analyzed by FA/AA using a 1 AT charge with a detection limit of 5 ppb Au. Any samples that exceed 1 g/t or greater using the FA/AA method are then re-assayed using FA/Gravimetric on a 1 AT charge with a detection limit of 0.10 g/t Au. Each sample is also sent for multi-element analysis by the ICP-MS method.

As part of in-house QA/QC TSL Laboratories inserts certified gold standards, which are purchased from CDN Resource Labs. Standards are inserted and three pulp duplicates are analyzed for every 20 samples. Random additional repeats are also analyzed as required. Results from all internal QC samples and repeats are reported.

In addition, certified gold standards and "blank" core samples are sequentially inserted on site. The standards are purchased from CDN Resource Labs and the "blank" core samples are taken from barren drill core on site. One standard and one blank are inserted with every batch of 20 core samples prior to shipment to TSL Laboratories. 

If there are any analyses of the certified gold standards that falls outside of the acceptable range the entire batch of 20 samples will be re-run. If there are any significant gold values returned from the "blank" core samples the entire batch of 20 samples will be re-run. Upon completion of the 2010 assaying 5% to 10% of the core sample pulps from 2010 drilling program will be submitted to another lab for check assaying. No sample batch re-runs have been necessary on the 2010 gold assay results received to date. 

On Behalf of the Board of Directors,

Eric Norton, President & CEO

Shares Issued: 90,942,516 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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