5th May 2009 10:27
CHURCHILL MINING PLC
("Churchill" or "the Company")
Spitfire Resources Limited Update
Churchill Mining Plc draws shareholder's attention to the following announcement released by Spitfire Resources Limited ("Spitfire" ASX:SPI) on the ASX today. Churchill Mining Plc (AIM:CHL) holds a 28.8% interest in Spitfire following the share placement.
Enquiries:
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Churchill Mining Plc Managing Director - Paul G. Mazak +62 81510539186 / + 62 21 39832398 |
Blue Oar Securities Shane Gallwey +44(0)20 7448 4400 Olly Cairns +61 (0)8 6430 1631 |
Pelham PR Candice Sgroi +44 (0) 20 7337 1533 or +44 (0) 7894462114 |
SPITFIRE COMMENCES DRILLING AT SOUTH WOODIE WOODIE
STRENGTHENS CASH POSITION THROUGH A$400,000 SHARE PLACEMENT
Further to the Company's Quarterly Report lodged on 21 April 2009, Spitfire Resources Limited (ASX: SPI - "Spitfire" or "the Company") advises that the 2,500m Reverse Circulation drilling program planned for the South Woodie Woodie Project in Western Australia's Pilbara region has now commenced.
As outlined in the Quarterly Report, the drilling program is focused within a 200m by 200m priority area of interest at the recently discovered Tally-Ho Prospect, where anomalous manganese mineralisation was intersected in drilling last year.
Access and drill pad preparations were completed recently and all logistics and support services are in place. The drilling program will comprise approximately 50 shallow RC holes which will be drilled to an average depth of 50 metres. The program is expected to take approximately two weeks to complete with assay results expected mid-year.
The South Woodie Woodie Project lies some 50km along strike to the south of the Woodie Woodie Mining Centre, owned and operated by Consolidated Minerals Limited. The project is located in an emerging manganese province which also includes Hancock Prospecting's Balfour Downs Manganese Project.
Share Placement
Spitfire also advises that it has agreed to place a total of 6.6 million shares at a price of 6 cents per share to existing and new investors, raising a total of A$400,000.
The issue of securities is made using part of the limit approved by shareholders at a general meeting on March 6, 2009. All of the shares issued under the placement are fully paid ordinary shares and will rank pari passu with existing ordinary shares.
The proceeds of the share placement will strengthen Spitfire's cash resources to approximately A$5 million, maintaining a strong funding capability to underpin immediate and future exploration activities at the Company's South Woodie Woodie Manganese Project in Western Australia.
Competent Person's Statement
The information in this release relating to exploration is based on information compiled by Mr. N. Cull who is a Member of the Australian Institute of Geoscientists. Mr. Cull is Exploration Manager for Spitfire Resources Ltd, and consents to the inclusion in this type of report of the information as presented. He has sufficient experience relevant to the style of mineralisation and to the type of activity described to qualify as a competent person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.'
About Spitfire Resources
Spitfire Resources Limited (ASX Code: SPI) is an Australian resource company part focused on the exploration and development of a portfolio of manganese exploration assets in the East Pilbara region of Western Australia. Spitfire listed on the Australian Securities Exchange in December 2007 following a successful A$6 million Initial Public Offer (IPO).
The South Woodie Woodie Project comprises three granted Exploration Licences. The principal area of initial exploration focus lies some 50km down-strike from the 1Mtpa Woodie Woodie manganese mine.
Spitfire has also secured a substantial portfolio of new exploration tenure near the South Woodie Woodie Project, more than doubling its existing land holdings in the prospective East Pilbara region. The Company has lodged applications for four strategic tenements, covering a total area of 899 square kilometres, which are located approximately 13km south-east of the South Woodie Woodie Project.
Some of the new ground package abuts tenements managed by Consolidated Minerals, the former listed owner of the Woodie Woodie mine, and who was bought by private Ukrainian group Palmary Enterprises. Spitfire selected the ground after completing interpretive geological work suggesting that the area to the south-east could host strike extensions of a potential corridor of manganese host rocks.
In 2008, Spitfire announced a significant addition to its asset base through an agreement to acquire a portfolio of advanced thermal coal projects located in Tasmania, providing the basis for a potential niche thermal coal export business.
ENDS
Related Shares:
Cloudified Holdings Limited