Mano River Resources Inc.
TSX VENTURE : MNO
AIM : MANA

Mano River Resources Inc.

August 03, 2009 09:00 ET

Mano River Resources Inc.: Initial Resource Exceeds 1 Billion Tonnes of Iron Ore With Further Potential at Putu

LONDON, UNITED KINGDOM--(Marketwire - Aug. 3, 2009) - Mano River Resources Inc. ("Mano" or the "Company") (TSX VENTURE:MNO)(AIM:MANA) the TSX Venture Exchange ("TSX-V") and AIM listed exploration to production company focused on gold, iron ore and diamonds in West Africa is pleased to announce an initial Independent Mineral Resource estimate of 1.08 billion tonnes of iron ore at the Company's 38.5% owned Putu Range iron ore project ("Putu") in Liberia.

Highlights:

  • Independent Mineral Resource of 1.08 billion tonnes of iron ore at 37.6% total iron (Fe) at Putu in Liberia
  • Mineral Resource covers only a 2.6km section of 12km ridge
  • Potential for the Putu resource to grow as exploration programme advances
  • Best drill results to date of 91m at 61.3% Fe oxidised BIF haematite and 232m at 40.8% Fe magnetite
  • 61.5% project partner Severstal Resources investing US$30m and working with the Company towards a Pre-Feasibility Study during 2010

Luis da Silva, President & CEO of Mano commented:

"We are delighted to announce this initial 1 billion tonne Mineral Resource estimate, especially as the resource covers less than one quarter of the 12km strike length of the Putu iron ore project in Liberia. Although early in the exploration programme this is encouraging in order to reach the sort of scale that will enable such a large infrastructure project to become economically viable. The discussions with the Government of Liberia for the 25 year mining licence are progressing."

Mineral Resource Estimate

In July 2009 SRK Consulting (UK) Ltd ("SRK") was engaged, as part of the AAR transaction, to produce an Independent Mineral Resource Estimate for the Putu Iron Ore Project. The Mineral Resource estimate has been prepared under the guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CP ("NI43-101") and is based on previously announced exploration and more recent drilling results.

The Mineral Resource estimate for the 2.6km section of the 12km ridge drill tested to date provided an initial Inferred Mineral Resource of 1,077 million tonnes at a grade of [37.6%] total of Banded Iron Formation (BIF) mineralisation.  This is based on the 11 recent diamond drill holes, including the latest assays for holes PDD009-PDD011.  The Joint Venture company of Severstal Liberia Iron Ore, is continuing its exploration and is shortly to restart a CRIRSCO-compliant resource definition diamond drilling programme, as previously announced.

The assay data was composited to 5 metres and used in statistical and geostatistical (Variography) studies that enabled Ordinary Kriging (OK) to be applied as the main grade interpolation method.

The site visit and inspection of sample preparation facilities has been undertaken by Howard Baker, Principal Mining Geologist with SRK, (Qualified Person as designated under NI43-101) during July 2009.

SRK has reported the Mineral Resource split into the following material types:

  • Oxidised BIF (CAP) material,
  • Haematite BIF (HBIF), and
  • Magnetite BIF (MBIF).

This Mineral Resource Statement is presented in Table 1.  The statement has been classified in accordance with the Guidelines of National Instrument 43-101 and accompanying documents 43-101.F1 and 43-101.CP. It has an effective date of 20 July 2009 and the full report will be available on Sedar (www.sedar.com) and the Company's website (www.manoriver.com) the week commencing 10 August 2009.

Table 1:  Putu Deposit, Initial Mineral Resource Statement

Category Material Tonnes (Mt) Fe (%) Al2O3 (%) SiO2 (%) P2O5 (%) LOI (%)
Inferred CAP 126 43.9 7.7 21.4 0.32 6.4
Inferred HBIF 283 34.3 1.8 42.3 0.17 1.7
Inferred MBIF 668 37.8 0.5 40.8 0.18 0.0

*Reported above 300 Relative Level (RL), as of 20 July 2009, at zero cut-off grade, with no optimised pit shell, which is considered to represent reasonable prospect for economic extraction.

In addition to the Inferred Mineral Resource as quoted above in Table 1, beneath the 300RL, and within the geological model, there is some 364 Mt of magnetite BIF.

Drilling Results

Geochemical analyses have now been received from OMAC for the last of the core samples from the 2008 Putu drilling campaign.  Summary results for all 11 holes drilled last year are presented in Table 2.  PIOM is in the process of engaging an analytical services contractor to complete Davis Tube Recovery (DTR) testing on all of the 2008 drilling samples, which will provide invaluable metallurgical information in the early stages of the PFS.

Qualified Persons

The information in this press release relating to Mineral Resources is based on information compiled under the direction of Mr Howard Baker (BSc, MSc, MAusIMM) who is a Member of the Australasian institute of Mining and Metallurgy.  Mr Baker has worked on the major iron ore deposits of West Africa, namely Rio Tinto's Simandou in Guinea, African Minerals' Tonkolili in Sierra Leone and first visited Putu in 2007.

Mr Baker is a full time employee of SRK and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person (QP) as defined in the 'Canadian Institute of Mining, Metallurgy and Petroleum, CIM standards on Mineral Resources and Reserves 2000 Edition' and NI43-101. Mr Howard Baker has reviewed this press release and consents to the inclusion in the press release of the matters based on his information in the form and context in which this appears.

For exploration work, Charles Savage (BSc, CEng, ARSM, MIME), a consultant to the Company, is the appointed Qualified Person responsible for reviewing and approving the content of this release. He is a Mining Engineer with over 40 years experience in exploration, development and operations in the iron ore, base metals and industrial minerals areas, throughout the world.

For further information on Mano River Resources and its exploration programme, you are invited to visit the Company's website at www.manoriver.com or contact one of the following:

NOTES TO EDITORS

Table-2:  Full Composite of assays by grade

Drill Hole Drilled
Metres
Average grade
(Fe %)
Length Downhole
(m)
From
(m)
To
(m)
Geology Comment
PDD001 133 54.21 54.6 0.0 54.6 Oxidized (Haematite) Ended in Mineralisation
PDD001   44.70 47.7 62.8 110.5 Fresh (Magnetite)  
PDD001   39.05 14.6 118.5 133.0 Fresh (Magnetite)  
PDD002 187.4 63.54 63.0 8.6 71.6 Oxidized (Haematite) Ended in Mineralisation
PDD002   47.78 63.4 71.6 135.0 Fresh (Magnetite)  
PDD002   37.16 14.6 172.9 187.4 Fresh (Magnetite)  
PDD003 401.2 43.96 18.5 0.0 18.5 Oxidized (Haematite) Ended in Mineralisation
PDD003   30.15 13.7 27.0 40.7 Fresh (Magnetite)  
PDD003   33.62 41.1 53.0 94.0 Fresh (Magnetite)  
PDD003   37.17 12.5 120.5 133.0 Fresh (Magnetite)  
PDD003   39.45 9.4 155.1 164.5 Fresh (Magnetite)  
PDD003   39.44 222.0 179.2 401.2 Fresh (Magnetite)  
PDD004 401.4 62.37 9.5 0.0 9.5 Oxidized (Haematite) Ended in Mineralisation
PDD004   39.94 17.1 9.5 26.6 Fresh (Magnetite)  
PDD004   39.04 367.4 34.0 401.4 Fresh (Magnetite)  
PDD005 400.5 33.62 51.8 96.5 148.3 Fresh (Magnetite) Sequence Completed
PDD005   37.94 208.7 165.0 373.7 Fresh (Magnetite)  
PDD006 394.5 55.56 8.0 0.0 8.0 Oxidized (Haematite) Sequence Completed
PDD006   42.78 22.0 31.5 53.5 Oxidized (Haematite)  
PDD006   41.50 8.0 57.5 65.5 Oxidized (Haematite)  
PDD006   37.43 99.3 90.2 189.5 Fresh (Magnetite)  
PDD006   38.93 109.1 206.2 315.3 Fresh (Magnetite)  
PDD007 596.6 43.37 18.0 36.5 54.5 Oxidized (Haematite) Sequence Completed
PDD007   43.21 8.3 148.1 156.4 Oxidized (Haematite)  
PDD007   33.12 89.3 204.7 294.0 Fresh (Magnetite)  
PDD007   33.10 67.2 300.0 367.2 Fresh (Magnetite)  
PDD008 367.5 63.60 49.5 0.0 49.5 Oxidized (Haematite) Sequence Completed
PDD008   50.66 33.0 52.5 85.5 Oxidized (Haematite)  
PDD008   50.72 34.5 97.5 132.0 Oxidized (Haematite)  
PDD008   37.57 60.4 174.7 235.1 Fresh (Magnetite)  
PDD009 350.1 60.65 19.5 0.0 19.5 Oxidized (Haematite) Sequence Completed
PDD009   41.65 15.4 19.5 34.9 Fresh (Magnetite)  
PDD009   40.79 231.9 49.5 281.4 Fresh (Magnetite)  
PDD010 364.5 43.99 57.5 0.0 57.5 Oxidized (Haematite) Sequence Completed
PDD010   30.28 19.2 97.7 116.9 Oxidized (Haematite)  
PDD010   34.21 11.2 143.5 154.7 Oxidized (Haematite)  
PDD010   33.15 66.7 206.0 272.7 Fresh (Magnetite)  
PDD010   39.94 26.0 275.0 301.0 Fresh (Magnetite)  
PDD011 360 61.27 91.1 0.0 91.1 Oxidized (Haematite) Sequence Completed
PDD011   47.26 17.1 103.6 120.7 Oxidized (Haematite)  
PDD011   40.77 136.1 120.7 256.8 Fresh (Magnetite)  
Total 3,956.7            
[Composite cut-off 25% for fresh ore & 35% for oxidized ore]          

Quality Control and Sample Preparation

Manohas a rigorous Quality Control Program (QCP) inserting a minimum 5% standards,blanks and duplicates into the sample stream. The Company employs independentlyowned and managed OMAC Laboratories for all its assay requirements, includingthe preparation of pulps to 90% -100 micron at their in-country preparationfacilities in Liberia, followed by XRF at their main laboratory in Loughrea,Ireland.

OMACis accredited to ISO 17025 by INAB (Irish National Accreditation Board) whichis a member of ILAC (International Laboratory Accreditation Cooperation), andis a signatory to the ILAC Mutual Recognition Arrangement. OMAC operates aninternal QA/QC check assay programme using in-house standards, reagent blanksand duplicates.

Overview of the Putu Iron Ore Project

ThePutu Iron Ore project is located in the centre of a 425 sq km explorationlicence in Grand Gedeh County of eastern Liberia, approximately 100km northeast from a potential deep water port of Greenville and 200km south east of theMt. Nimba iron ore deposit.

ThePutu project consists of two prominent ridges that strike northeast southwest,namely, Mt Jideh (with its extension Mt Montroh) and Mt. Ghi. Exploration todate has focussed on Mt Jideh, which comprises a high-grade outcroppingmagnetite/hematite mineralised zone that has undergone various stages ofweathering. Mt Jideh has a strike length of approximately 12km based on mapping,surface sampling and airborne magnetic data.

Thelower priority target called Mt Ghi runs parallel to Mt Jideh and thoughmassive does not have a magnetic anomaly or significant outcrop. A programme of30 reconnaissance grab samples at Mt Ghi had returned an average grade of 39.3%Fe. The grade is believed to be associated with a deep tropical weatheringprofile. Mt Ghi has been excluded from any Mineral Resource estimation.

Severstal Joint Venture

SeverstalResources is a 6.29% shareholder in Mano River Resources Inc through its whollyowned subsidiary, Lybica Holdings B.V. The Company signed an agreement on 22May 2008 and subsequently completed the transaction with Severstal on the 10December 2008. The deal provides for US$15m cash being injected into the jointventure company, now renamed Severstal Liberia Iron Ore Ltd, as well as anadditional US$15m debt facility. This US$30m will provide for the specificadvancement towards a definitive feasibility study.

SeverstalResources is the mining division of OAO Severstal (www.severstal.com) and one of the biggestmining companies in Russia. Severstal Resources manages all Severstal's miningassets: two iron ore mining complexes and a coking coal complex in northwestRussia, one coking coal complex in USA (PBS Coal), a ferroniobium extractioncomplex in West Russia and an exploration project, Severstal Liberia Iron Orein West Africa. Severstal Resources also manages a number of gold mining assetsin Russia, Kazakhstan and Burkina Faso as well as several gold explorationfields in these regions. In 2008 EBITDA was $859 million. OAO Severstal is aninternational metals and mining company with a listing on the Russian TradingSystem, Moscow Interbank Currency Exchange and the London Stock Exchange. Itsenterprises are located in Russia, Ukraine, Kazakhstan, United Kingdom, France,Italy, United States and Africa. In 2008, Severstal produced 19.2 milliontonnes of steel. Revenues were $22.4 billion and EBITDA was $5.4 billion. EPSwas $2.2.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mano River Resources Inc
    Luis da Silva, CEO
    +44 (0) 20 7299 4212

    or

    Evolution Securities Limited
    Simon Edwards / Chris Sim / Neil Elliot
    +44 (0) 20 7071 4300

    or

    Pelham Public Relations
    Charles Vivian / James MacFarlane
    +44 (0) 20 7337 1500