Zone Resources Inc.

Zone Resources Inc.

October 06, 2011 14:46 ET

Zone Resources Inc. Labrador Trough Iron Properties Status Report and Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR)(FRANKFURT:7ZR) is pleased to present the following update of the company's exploration program on its iron ore properties in the Labrador Trough of northern Québec.

Recent claim staking has increased the size of the company's properties to a total of 888 claims with an aggregate area of approximately 102,210 acres. The claims are divided into four separate blocks or properties: the Moore (261 claims), Girard (553 claims), Bob Lake (54 claims) and Red Knob Hill (20 claims).

Previous exploration recorded on the properties was carried out in the early 1950s. Extensive shallow drilling took place on the Moore property as was reported in previous news releases. This early drilling outlined large areas of hematite mineralization in the Moore and Star zones.

Zone Resources carried out an airborne magnetic survey prior to the field season which has been successful in locating primary mineralization, i.e. magnetite iron formations. The survey has also revealed large-scale structures which are associated with the secondary, hematite-rich iron zones. Secondary remobilization and enrichment of the magnetite has resulted in deposits of hematite, locally of very high grade, throughout the Labrador Trough. High grade secondary hematite mineralization constitutes "direct shipping ore" or "DSO". The 1950's-era exploration targeted the DSO deposits and ignored the more extensive primary magnetite zones.

Zone Resources has completed ground gravity surveys over three targets on the Moore property. The Moore and Star zones were drilled in the 1950s which indicated extensive hematite mineralization. The gravity survey has outlined distinct gravity anomalies that potentially outline the thickest and/or highest grade sections of the mineralized zones. A gravity survey was also carried out over a newly recognized area of primary iron formation called the North Slope Zone which has outlined three discrete areas of anomalous gravity, two of which coincide with aerial magnetic anomalies

A diamond drilling program on the Moore property is now on the fifth hole. The first two holes were drilled on the Moore zone, both of which were abandoned because of poor ground conditions. The hematite mineralization was, for the most part, unconsolidated and core recovery was very low. Drill testing of the Moore and Star hematite zones will resume after an appropriate mud system is installed. Drill holes ZR11-03 and ZR11-04 tested the Ross Mountain zone, a 3 kilometre long ridge that exposes magnetite and siderite (iron carbonate) mineralization.

Drill hole ZR11-03 intersected 53.5 metres averaging 23.68% Fe, including a 34.00 metre section of magnetite-rich mineralization averaging 28.51% Fe. Drill hole ZR11-04 intersected 80.10 metres of iron formation, of which the first 48.00 metres are siderite-dominated with increasing magnetite content, and 32.1 metres are typical magnetite-chert. Both holes were drilled vertically into zones with a dip of about 20 degrees.

Drill hole ZR11-05 is presently being drilled on the North Slope zone. The hole was collared in magnetite-chert iron formation, and is still in magnetite at 62 metres, at the time of writing (9 PM EDT October 5th).

Furthermore, the much larger Girard property, located northwest of Adriana Resources' Lac Otelnuk Project, has very extensive areas of deep red hematite, exposed in deeply incised valleys that follow fault structures inferred from the magnetic survey. These hematite zones have the potential for iron enrichment and possible development of DSO. The company is considering the use of an airborne gravity survey to zero in on the most iron-rich sections of these broad zones, which would form one of the foundations for the 2012 exploration program.

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 quoted in this news release are of total iron, and were performed by Activation Laboratories Ltd. Of Ancaster, Ontario, using X-Ray fluorescence.

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.

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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