SOURCE: Ring of Fire Resources, Inc.

August 04, 2011 14:01 ET

Ring of Fire Resources Inc. to Divest Its Interest in the McNugget JV Project

TORONTO--(Marketwire - Aug 4, 2011) - Ring of Fire Resources Inc. (the "Company" or "ROF") (TSX-V: ROF) (FRANKFURT: RG5) (PINKSHEETS: HWKPF) announces that it has engaged IBK Capital Corp to divest its 36.75% interest in its McNugget JV Project for cash. Macdonald Mines Exploration Ltd. ("BMK") has the remaining 63.25% interest in the project and is the operator.

The McNugget JV Project is comprised of 6 claim blocks consisting of 92 claim units and totalling 1554 hectares and has drill-identified Vanadium Targets over 8km in strike length within large Titano-Magnetite bodies averaging 5.9m in down-hole thickness and down to 125m vertical depths based on the current drilling data, as well as previously announced Nickel, PGE and VMS targets.

Anomalous Vanadium Results (previously released on 13/05/2011)

Anomalous Vanadium Pentoxide (V2O5) has been identified in drill hole MN07-49 that was drilled in 2007 from Whole Rock Analysis completed earlier this year with grades reported to be 1.57% V2O5 at 37.6 metres, 1.39% V2O5 at 62.1 meters and 1.14% V2O5 at 66.5 metres. This hole was drilled into VTEM Anomaly N-30 located on the western side of the McNugget JV Ground.

BMK recently announced that all holes drilled in the 2011 drilling program intersected vanadium mineralization with values as high as 1.58% V2O5, with composited intervals ranging from 0.42% V2O5 to 1.17% V2O5 -- the weighted average of all vanadium mineralization intersected on the property from this drilling program was 0.644% V2O5. It should be noted that these values are comparable to currently producing Vanadium mines internationally.

The Vanadium targets were intersected in 8 diamond drill holes (BP11-V01 to V08) totalling 1060.4 metres of which 4 diamond drill holes (BP11-V01, V06, V07 & V08) were collared on Anomaly N-30 on the McNugget JV ground totalling 732.5 meters.

Assay Intervals Including
Drill Hole From To V2O5 Ti02 Fe Interval* * From To V2O5 TiO2 Fe Interval*
(m) (m) (%) (%) (%) (m) (m) (m) (%) (%) (%) (m)
BP11-V01 8.5 20.5 0.57 4.58 22.79 12
BP11-V01 40 58 0.54 4.43 23.65 18 48 50.5 0.94 7.49 36.18 2.5
BP11-V01 63.9 66.4 0.65 5.20 25.04 2.5
BP11-V06 170.5 173 1.04 7.83 39.27 2.5
BP11-V07 44 52 0.83 5.88 29.97 8 44 48.2 1.17 7.97 40.73 4.2
BP11-V07 77.7 83 0.95 9.75 36.44 5.3 77.7 81 1.12 11.08 41.59 3.3
BP11-V08 40 42 0.47 5.05 21.70 2

*lntervals represent the length of the down-hole intersection only, and therefore do not represent true width.

Vanadium is a strategic element used in steel production. There is no major source of vanadium located in North America in production. The presence of vanadium at Butler has placed the company into a growing and interesting suite of minerals now available in the Ring of Fire including nickel (Noront Resources Ltd), chrome (Cliffs Natural Resources Inc.) and now vanadium which could fit the requirements of companies such as Cliffs and the Baosteel Group, a large Chinese steel conglomerate who recently invested in Noront. There is also growing interest in vanadium for use in the battery storage industry. Vanadium is being used by the emerging battery technologies primarily in large energy storage systems called Vanadium Redox Flow Batteries (VRFB) and also in electric car batteries.

Anomalous PGE Results: (previously released on 10/02/2011)
Drill hole MN08-56 drilled in 2008 into the Butler #5 nickel anomaly (VTEM Anomaly N-25 located on the McNugget JV Ground boundary) returned assay values of 24 ppb Pt and 177 ppb Pd over a 3.5 metre interval. These results were confirmed by re-sampling of this interval in more detail in 2010. The 2010 analysis, along with the original 2008 analysis, are presented in the table below:

Drill Hole Analysis From To Interval (m) Pt (ppb) Pd (ppb)
MN08-56 2008 66 69.5 3.5 24 177
MN08-56 2010 66.15 66.25 0.1 35 67
MN08-56 2010 68 68.15 0.15 128 946
MN08-56 2010 74 74.16 0.16 42 289

About Ring of Fire Resources Inc.:
Ring of Fire Resources Inc. is a Canadian based junior exploration company with a portfolio of diversified exploration projects at various stages of exploration and drilling for Nickel/Copper/Chromium/PGM in the 'Ring of Fire' McFauld's Lake Area of Northern Ontario, Gold in Northern Ontario, and Uranium in Northern Saskatchewan.

Michael Newbury, P. Eng (ON), a "qualified person" as such term is defined by National Instrument 43-101 and a director of ROF, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of ROF.

More detailed information is available on the website at www.ringoffireresources.com

About IBK Capital Corp.:

IBK Capital is an independent and privately owned investment banking firm which offers a full range of financial advisory services. Such services include private placements of equity and debt, going public by way of initial public offering or reverse take-over of a public shell corporation, merger, acquisition and divestiture advisory services, valuations, fairness opinions and take-over defence planning. The Firm's corporate objective is to provide the highest quality independent financial advisory services to its clients.

More detailed information is available on the website at www.ibkcapital.com

Cautionary Statement:

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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of Ring of Fire Resources Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the Company's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by the Company with the TSX Venture Exchange and securities regulators. Ring of Fire Resources Inc. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contacts:
    Ring of Fire Resources Inc.

    H. Vance White
    President
    Phone: 416-214-2250
    Fax: 416-367-1954

    Corinna de Beer
    Investor Relations
    Phone: 416-792-0343
    email: ir@ringoffireresources.com