Zone Resources Inc.
TSX VENTURE : ZNR

Zone Resources Inc.

May 19, 2011 13:18 ET

Zone Resources Inc. Updates the Status of its Land Position in the Labrador Trough, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2011) - Zone Resources Inc. (Zone) (TSX VENTURE:ZNR) reports that it is pleased to issue this news release to update and clarify the status of its Labrador Trough iron properties in the Nunavik district of northern Quebec.

The company holds three separate properties: Girard, Moore-Ross and Red Knob Hill. Including claims held under option and newly staked claims, the three properties comprise approximately 746 claims totaling about 34,000 hectares. The properties are situated in the Labrador trough, approximately 115 kilometres southwest of Kuujjuaq (previously known as Fort Chimo), a seaport on the Atlantic coast of Quebec.

The Girard Property, which is the largest of the three 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. One drill hole was reported to have intersected 197 feet (60.04 metres) averaging 42.9% iron. Most of the drilling appears to have comprised shallow holes to test the lateral extent of the iron zone, rather than its thickness, and most of these holes ended in mineralization. Drill logs and maps examined to date appear to have defined iron mineralization over a minimum area of 1,800 feet by 2,300 feet (550 by 700 metres). Some historical drilling also appears to have been done on the Ross Zone, near the southeastern end of the property.

Reconnaissance level, government airborne magnetic surveys have defined 24 kilometres of linear magnetic anomalies that may correspond to iron formations. Iron mineralization on the Moore-Ross claims consists mainly of hematite, but appears to have sufficient magnetite to give distinct airborne responses.

The Red Knob Hill Property (20 claims, 900 hectares) appears, from present data, to have had only minimal historic exploration. One 1950 report describes intermittent outcrops of iron formation over a length of 5 kilometres and widths up to 300 metres. No historical assay data has yet been unearthed.

Exploration Strategy: The company has contracted with Terraquest Inc. to carry out a high-resolution airborne magnetic survey of the properties in early June. A compilation of historic data, mainly statutory work reports from the early 1950s, is under way. One of the preliminary outcomes of this compilation is that good quality geological maps of the Girard and Moore-Ross properties were made, which will allow geological data to be meshed with the airborne magnetics. The company plans to commence field work, including diamond drilling, in July.

Infrastructure Development: On May 9th, 2011, Premier Jean Charest announced a multi-year, multi-billion dollar enterprise called Plan Nord, to assist economic development in northern Quebec. One of the initiatives in Plan Nord is to "conduct studies to ascertain the feasibility of a road or rail link from Kuujjuaq southward". A surface transportation corridor running south from Kuujjuaq would naturally have a positive impact on the economics of mineral developments in the northern part of the Labrador trough.

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