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Brazil exploration works acceleration

6th May 2009 07:00

RNS Number : 7328R
Templar Minerals Limited
06 May 2009
 



For Immediate Release 6th May 2009

Templar Minerals Limited

('Templar Minerals' or 'the Company')

Rio Parnaiba Project - Acceleration of Exploration Works

Commencement of Initial Drill Programme

Templar Minerals Limited (AIM: TMP) is pleased to announce that following its recent site visit to Brazil, the Company has decided to accelerate exploration works and commence an initial drill program at the Rio Paranaiba project in the Brazilian State of Minas Gerais ("the Project"). The initial program will comprise 21 diamond drill holes covering1,050 metres, which has been budgeted at a total cost of US$500,000 to be funded from internal reserves. The initial target area covers approximately 2.7km x 700m with an exploration potential of between 100 and 300 million tonnes of iron bearing material. The drill rig is currently being mobilised and it is expected that work will commence by the end of May. It is expected that the full program including logging and assay results will be completed within 3 months from commencement

The Project represents a new iron ore discovery in the Brazilian State of Minas Gerais. It covers 14,000 ha (140 km2) and is located 210km from the city of Divinopolis, a key manufacturing hub and steel production centre. The Project is 90km on paved road from the township of Patos De Minas and has excellent infrastructure including power and water access.

Initial geological sample results from the Project range in values for iron from 26.8% to 67.2% with an arithmetic average 45.6% iron and 0.07% phosphorous. Recently received sulphur test work, which was undertaken following the previously released sample results, has confirmed all samples had low sulphur levels, typically below 0.01%.

The selection of drill-hole locations has been designed to test the depth extents of iron mineralisation at 4 key zones within the identified strike length of mineralisation. Given the 'at surface' nature of the deposit it is expected that drill depths of not more than 50 metres will be required to initially test the depth extension of the mineralisation. In addition to the initial drill program the Company will also be undertaking bulk sampling to test iron product for potential beneficiation

Due to the acceleration of the exploration program it is expected that the Company will fulfil the Phase 1 - 50% earn in commitment during May 2009. As a result, the Company has commenced finalisation of the farm-in terms with its Brazilian partner.

Chairman David Lenigas commented;

"The acceleration of the exploration program at Rio Parnaiba has the potential to deliver early results and is in line with the Company's stated objectives of acquiring & developing high potential mineral deposits at low cost. The Paranaiba Iron Ore project has the potential to be a significant asset for the Company."

The technical information contained in this announcement has been reviewed by Mr. Alastair Clayton, a qualified Geologist. He is the Qualified Person who has reviewed the field data. Mr. Clayton has worked for over 15 years as a geologist and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this announcement.

Enquiries

Templar Minerals Limited

David Lenigas Tel: +44 (0)20 7016 5100 

Charles Wood Tel: +44 (0) 7971444326

Beaumont Cornish Limited

Roland Cornish / Rosalind Hill Abrahams Tel: +44 (0)20 7628 3396 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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