VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2012) -
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Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) is pleased to announce the results of diamond drill hole ZR11-08 on the company's Girard iron ore property in the Labrador trough of northern Québec. The hole intersected iron formation with an average of 35.77 % Fe over 243.00 metres.
Drill hole ZR11-08 was drilled at -50° on a 5 kilometre long airborne magnetic anomaly in the western part of the Girard claim group. It was collared in magnetite-rich iron formation at the base of casing at 6.00 metres. The iron zone continued for 243.00 metres. Iron contents of individual samples over core lengths of between 1.50 and 2.00 metres ranged from 23.49% Fe up to a maximum 45.55% Fe, with an average of 35.77% Fe over the entire 243.00 metre intersection.
To view the airborne electromagnetic map with the plotted location for drill hole ZR11-08 visit the following link: http://www.zone-resources.com/image/girard_mag_survey_january9th_2012.png.
The dip of the iron zone, based on core angles, is approximately vertical. The hole was collared in iron formation, and so did not intersect the full width of the zone.
"We are excited about the potential of the Girard Project," stated Charles Desjardins, President and CEO of Zone Resources. "With numerous magnetic anomalies over an aggregate length of 75 kilometres, we plan to focus Zone's initial 2012 drill program at Girard. While our initial work will continue to focus on magnetite iron formations, the historical information has lead us to believe the property has excellent potential to yield higher grade hematite rich zones which we hope to begin to follow up on later in 2012."
The Girard claim group encompasses 602 claims with a total area of 28,238 hectares (69,747 acres). The airborne magnetic survey has outlined numerous anomalies: the aggregate length of all the magnetic anomalies believed to be caused by magnetite iron formation (with an amplitude over 1,000 nT), is approximately 75 kilometres in length and over 2 kilometres in width.
Hole ZR11-08 was the first and only hole to date on the 5-kilometre long anomaly. It was situated 21 kilometres west of ZR11-09, which was drilled on a separate, 9-kilometre long magnetic anomaly. ZR11-09 intersected 35.64% Fe over 137.00 metres. It also was a 50-degree inclined hole, was also collared in iron formation, and hence also did not test the full width of the magnetite zone.
Technical information in this news release has been prepared and/or reviewed by Michael Magrum, P.Eng., a Qualified Person as defined in NI 43-101. Analyses were performed by Activation Laboratories Ltd. using X-Ray fluorescence.
Furthermore, the Company reports that it has applied to the TSX Venture Exchange to extend 1,660,000 warrants priced at $0.30 due to expire January 19, 2012. The amended terms will allow the holders of the warrants to exercise them at the original price of $0.30 until January 19, 2014.
About Zone Resources Inc.
Zone Resources Inc. is a Canadian Iron ore exploration and development company with 4 major projects situated in the Labrador Trough of Quebec, Canada. The properties are near Adriana Resources' Lac Otelnuk Project and New Millennium's Kemag and Labmag projects. Historical drilling on the Moore-Ross property includes a significant hole grading 42.9% iron over 197 feet. Over 37 drill holes, the primary iron mineral is hematite and iron grades ranged from 17.25% to 44.8%. Technical information in this news release has been reviewed by Mike Magrum, PEng. a qualified person as defined in National Instrument 43-101. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR.
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.
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