Zone Resources Inc.

Zone Resources Inc.

July 07, 2011 09:00 ET

Zone Resources Inc. Receives Permit for 44 Drill Locations in the Labrador Trough, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) has received permit approval for 44 drill locations, on the Moore-Ross and the Girard Iron Properties, located in the Labrador Trough, in the Nunavik district of northern Quebec. The 44 drill locations were selected to expand the zones of iron mineralization previously defined. Additional drilling permits will be applied for when the results of the airborne survey has been obtained. Other permitting is in progress. Logistical and mobilization planning for the drilling has commenced.

Summary of the Girard and the Moore-Ross Property

The Girard Property, which is the largest of the four claim groups at 573 claims, 26,000 hectares, includes ten iron occurrences that were discovered in the late 1940s and early 1950s. Information on these occurrences is derived from old maps and reports; exploration was limited to mapping, prospecting, trenching and minimal diamond drilling of shallow holes with X-ray core. The best described of the ten historic occurrences is the MacDonald Zone, which was reported to have widths in excess of 600 feet and was traced over a length of at least 2,600 feet. Forty-one samples (of unspecified type) taken from test pits in 1950 were reported to have iron contents from a low of 28.37% to a high of 65.24%. Other historic iron occurrences on the Girard property are named: Ball No. 1, Ball No. 2, Girard, Gagnon No. 1, Gagnon No. 2, Carter, Steele-Carter, Jongman River and Big Dome. The Big Dome occurrence is referred to in reports but has not yet been located on a map.

Most of the historic iron occurrences on the Girard property are directly associated with magnetic anomalies on the low resolution government airborne magnetic survey carried out in the 1960s (in a few occurrences, the only iron mineral is hematite, which is weakly magnetic and does not show up on airborne surveys). Using this reconnaissance-level magnetic data, several distinct magnetic trends can be seen, with an aggregate strike length of 89 kilometres, within the property boundaries.

The Moore-Ross Property (153 claims, 7,000 hectares) has seen somewhat more exploration, including diamond drilling in the early 1950s. This work was focused on the Moore Zone and Ross Zone, two distinct iron zones that are about 9 kilometres apart. Historical reports examined to date appear to indicate that most of this work was concentrated on the Moore Zone.

Fifty-nine drill holes have intersected iron at the Moore Zone. Each hole was drilled vertically and relatively shallow; they appear to have been drilled primarily to determine the lateral extent of the iron mineralization in an area of extremely poor outcrop. Every hole that entered iron mineralization at the bedrock surface also ended in the iron zone, so that the thickness of the zone is not known. The deepest hole, M501, was 205 feet deep, and assays averaged 42.9% iron over 197 feet from the bottom of the casing at 8 feet, to the end of the hole.

Four drill holes at the northwestern and northeastern extremities of the drilled area intersected only very low grade (less than 15%) iron and may close off the mineralized zone in those directions. However, to the southeast and southwest the zone appears to be open. The mineralized area tested by drilling measures 3250 feet from northwest to southeast, and 1700 feet from northeast to southwest. This expands the surface area of mineralization by 75%.

An average iron grade was calculated for each drill hole, and the average of all the averages is 33.6% iron (holes that intersected higher grades tended to be drilled deeper than those that intersected lower grades, a weighted average by grade and core length would tend to overstate the average grade and it is likely that an "average of averages" will more closely approximate the overall grade of the deposit).

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

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.

Contact Information