Zone Resources Inc.

Zone Resources Inc.

May 04, 2011 09:00 ET

Zone Resources Inc. Announces Historical Drilling Results from the Moore-Ross Iron Property, Labrador Trough, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) is pleased to announce preliminary results from the technical compilation review being carried out on its Labrador Trough Iron Project. Historic drilling, in 1952, on the Moore Showing, on the Moore-Ross property, outlined an extensive zone of iron mineralization, including a drill hole assaying 42.9% iron over 197 feet.

A review of technical reports produced by Fenimore Iron Mines Ltd., for work performed in 1952, has revealed the existence of a widespread zone of iron mineralization which is open in all directions and at depth. Drill logs and a map outline an area of drilling over an area 2,300 feet long and 1,800 feet wide. In this area, thirty-seven drill holes encountered iron mineralization in every hole and all holes were stopped in iron mineralization. It appears that the main purpose of the drilling was to determine the lateral extent of iron mineralization. The primary iron mineral is hematite and iron grades ranged from 17.25 to 44.8% over widths of up to 197 feet. Drill logs are available for another thirty-one holes, with similar results. The locations of these drill holes, has yet to be determined.

The Moore showings, located an approximate two miles northwest of the Ross Mountain West area, were described in a 1948 report, by Mr. Corking, who summarized the visit to the Moore showings "to examine what appeared, on aerial reconnaissance, to be a sizable area of oxidization." The report describes the Moore showing area and states, "The showing consists of iron formation of the hard-ore-jasper-type which has been oxidized to an advanced degree, to form a ... hematite ... in one or two places, beds of hard, blue hematite are exposed." Several grab samples from the Moore showings are tabulated in this report and range from 29.67 per cent Fe to 67.35 per cent Fe. Mr. Corking goes on to say: "The oxidized iron formation is exposed for perhaps 2,000 feet along the flanks of a sharply V-shaped ravine which almost parallels the structure, and cuts it in such a way that the north side shows mostly oxidized iron formation and the south side, mostly red sandstone with some oxidized iron formation. The thickness of the exposed oxidized material is obscured by talus debris, but it probably exceeds 50 feet; if the structure has been interpreted correctly, there must be several hundred feet lying above which does not outcrop."

"We are excited with this early success on the Labrador Trough Project," stated Charles Desjardins, president and chief executive officer of Zone Resources. "Modern exploration methods will fast track the development of this exciting iron project."

The review of historic technical information is continuing with the objective of planning an aggressive exploration program.

Technical information in this news release has been reviewed by Mike Magrum, PEng, a qualified person as defined in NI 43-101.

The project is northwest of Adriana Resources' Lac Otelnuk project (wherein Wuhan Iron and Steel Corp. has paid $120-million for a 60-per-cent interest), and New Millenium's Kemag and Labmag projects (there is an option agreement with Tata Steel for a $4.9-billion development which includes the construction of a 750-kilometre slurry pipeline). Zone has recently acquired the Girard iron property, the Moore-Ross iron property and, most recently, the Knob Hill iron property.

About Zone Resources Inc.

Zone Resources Inc. is in the business of evaluating and acquiring mineral, oil, and natural gas properties for exploration and development. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR.

Cautionary note:

This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Neither the 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.

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