Commander Resources Ltd.
TSX VENTURE : CMD

Commander Resources Ltd.

March 04, 2010 09:00 ET

Commander Prepares for Drilling on the Baffin Island Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2010) - Commander Resources Ltd. (TSX VENTURE:CMD) plans to commence a comprehensive exploration program in April on its wholly owned Baffin Island Gold Project, Nunavut. The program will be operated by Commander and funded by AngloGold Ashanti under the terms of $20 million Farm-in JV Agreement announced September 3, 2009. The initial budget approved by AngloGold for the 2010 program is USD$4.55 million and will include at least 5,500 metres of drilling on two target areas.

The initial 2010 program will include 3,500 metres of drilling on the Malrok Zone and 2,000 metres of drilling on the new Kanosak Prospect Area (previously named the Hébert Prospect Area). In addition, target verification work at Ridge Lake and Durette will include surface geological mapping, core re-logging and structural interpretation to design appropriate follow-up drill programs.

Malrok Zone

Gold mineralization at Malrok is hosted in structurally-thickened silicate iron formation units. Drill results reported by Commander in 2004 included 9.15 grams per tonne gold over 6.0 metres (including 15.12 grams per tonne gold over 3.0 metres), 12.1 grams per tonne gold over 3.3 metres, and 4.46 grams per tonne gold over 9.41 metres (including 12.7 grams per tonne gold over 1.5 metres). The gold zone at Malrok is exposed at surface and has only been drill tested to a depth of about 50 metres; the current drill data indicates that the zone is open to expansion along a predominant southeast or easterly plunge direction. It is anticipated that drilling will commence in April; an initial pattern of drill holes will be designed to follow this trend and expand the known gold zone.

Kanosak Prospect Area (formerly named Hébert)

The Kanosak Prospect Area, which consists of Kanosak Main (formerly Hébert Main), Kanosak South (formerly Hébert South), and Kanosak North (formerly Traciane) outlines a 3.5 kilometre long 300-400 metre wide structural corridor that remains open to further expansion. Surface gold mineralization extends from high-grade sub-vertical and bedding-parallel quartz vein sets into altered arsenopyrite-bearing sedimentary units. Similarities in vein orientation, style, alteration and gold mineralization confirm that the entire Kanosak Prospect is part of one large gold mineralized system. There has been no prior drilling on this target area.

The initial drill program at Kanosak is expected to start in early June and will consist of about 2,000 metres of drilling in 15-20 shallow holes. The drilling will be focused on the Kanosak Main target area, designed to test the best surface exposure of the gold mineralization and the width of a coincidental Induced Polarization (IP) anomaly. Success in the first pass drilling program will verify the potential of this mineralized corridor and may lead to an expanded drilling and geophysical effort this year and in 2011.

Previously reported surface channel sample results from Kanosak Main included 9.32 grams per tonne gold over 5.87 m (including 104.3 grams per tonne gold over 0.40 m), 91.06 grams per tonne gold over 1.6 metres (including 446.6 grams per tonne gold over 0.3 metres), and 22.83 grams per tonne gold over 1.0 m. Results from surface grab samples returned some high values such as 1,388 grams per tonne gold, 861 grams per tonne gold, 720 grams per tonne gold, 213.5 grams per tonne gold, and 660.3 grams per tonne gold.

At Kanosak South, which is located close to one kilometre south of Kanosak Main, channel samples from a series of quartz veins included 373.90 grams per tonne gold over 0.25 metres, 241.30 grams per tonne gold over 0.25 metres and 104.50 grams per tonne gold over 0.30 metres. Grab sample results included high values up to 442 grams per tonne gold. At Kanosak North, located 1.5 kilometres north of Kanosak Main, channel samples in quartz veins over a 100 metre outcrop exposure included 66.84 grams per tonne gold over 0.38 metres, 31.49 grams per tonne gold over 0.85 metres and 96.51 grams per tonne gold over 0.20 metres.

Ridge Lake Zone

The Ridge Lake Zone, located 30 kilometres east of Malrok, contains a 3.5 kilometre strike length of gold-bearing iron formation. Previous shallow drilling over a 1.3 kilometre strike length of the trend defined a structurally-thickened gold-rich iron formation containing southwest-plunging higher grade shoots. Drill intercepts from these shoots included 10.63 grams per tonne gold over 8.89 metres (including 21.30 grams per tonne gold over 4.24 metres) at a depth of 89 metres down-dip from a surface outcrop grading 15.4 grams per tonne gold over 1.9 metres. Other notable intercepts included 10.17 grams per tonne gold over 4.45 metres, 8.79 grams per tonne gold over 1.80 metres, and 17.48 grams per tonne gold over 2.15 metres. The mineralized system remains open. Detailed structural interpretation, re-logging of drill core and surface mapping will be completed this season to define the next phase of drilling.

Durette Prospect

Previous diamond drilling and geophysics completed by Commander identified a significant thickness (up to 30 metres thick) of highly silicified iron formation over a 700 metre strike length that contains variably high gold grades associated with arsenopyrite and pyrrhotite. The iron formation trend, defined by a strong geophysical response, extends eastward under a large, shallow lake. An offset portion of the conductor continues for a further 1,500 metres to the west. This offset has not been tested by drilling and is largely covered by overburden. A separate discrete conductor located one kilometre to the southwest of Durette is 900 metres in length and associated with previously reported surface gold values grading up to 9.5 grams per tonne gold from prospecting samples. Detailed re-mapping of the target areas and re-logging of core is planned for this year to confirm the main controls on gold mineralization in advance of a suitable and necessary follow-up drilling program.

The Baffin Gold Project represents a district-scale gold belt with similar geological and genetic origins as the large Homestake area in South Dakota and the Morro Velho Mine in Brazil. To date the Baffin Project has yielded numerous gold prospect areas occurring over a strike length in excess of 100 kilometres. The property includes high-grade gold values in at least 3 separate iron formation units, within shear zones and quartz veins in younger granodiorite, gabbro, and metasedimentary units. In each of the different settings, gold occurs primarily as free gold.

The location and detailed results from the gold zones and prospects on the Baffin Property can be found on the Commander's website and in the Company's news releases pertaining to the Baffin Island Gold Project. The property is readily accessible to tidewater, contains abundant fresh water and is located close to a "Distant Early Warning" (DEW line) radar station, which has an operational 4,000 foot airstrip.

The Baffin Gold Project is subject to a Farm-in J.V. Agreement, announced September 3, 2009, with AngloGold Ashanti Limited's subsidiary AngloGold Ashanti Holdings Plc ("AGA") that provides AGA the option to earn an initial 51% interest in the project by funding $20 million in exploration over a six year term along with other considerations as detailed in the Company's September 3, 2009 News Release.

On Behalf of the Board of Directors,

Kenneth Leigh
President & CEO

Shares Issued: 90,399,516

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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