|
|
|
Baffinland Reports 169.8 metres Grading 65.8% Iron in Deposit No. 3 |
12/12/2006 |
|
Download this Press Release
|
December 12, 2006 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX: BIM) (“Baffinland” or the “Company”) today released assay results for five holes from the Company’s 2006 exploration programs on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada.
Deposit No. 3
The most significant hole being released today is hole MR3-06-108 that had a single continuous intercept of massive specular hematite in Deposit No. 3 of 169.8 metres grading 65.8% iron from 90.2 metres down the hole to 260.0 metres, where the hole ended prematurely in high grade mineralization due to technical drilling difficulties. Significantly, the 2006 drilling is the first drilling ever on Deposit No. 3 and the estimated true thickness of this interval is 140 metres. Also significant is the fact that assay results for sulphur are exceedingly low at less than 0.01% and that phosphorous levels at 0.025% are in line with the low levels reported in Deposit No. 1.
Gordon McCreary, President and CEO of Baffinland, stated, “Since this is the first drill hole in Deposit No.3 it is a very important result that bodes well for future drilling on the satellite deposits. Emphasizing the high grade of the iron oxide results released today is the fact that the pure hematite can only grade a maximum of 69.94% iron. Although specular hematite can be rather platey and friable, the mineralization in hole MR3-06-108 was very competent with the hole achieving 100% core recovery.”
Deposit No. 2
Also released today were 2 holes drilled in Deposit No. 2 that represent the second and third holes to be reported in this satellite deposit. The first hole drilled in Deposit No. 2 was MR2-04-42 reported in 2004 and returning an interval of 107.5 metres grading 63.5 % iron, ending prematurely in mineralization. In 2006, hole MR2-06-79 also ended prematurely due to technical drilling difficulties after recording a 43.0 metre interval of 62.1 % iron.
Hole MR2-06-82 reached a full planned depth of 167 metres encountering a single intercept of massive specular hematite of 119.8 metres grading 66.3% iron with an estimated true thickness of 90 metres. All three of the holes reported to date on Deposit No. 2 are drilled on the same crosssection and according to visual observations of the core from the other holes targeted at this deposit in 2006, this section is the thickest in Deposit No. 2 at present.
In 2006, an additional five holes were targeted on Deposit No. 2 with one of those holes being abandoned just as it entered the mineralization while the other four holes penetrated the entire high grade zone. Deposit No. 2 was drilled over a strike length of approximately 500 metres in 2006 and additional assays will be reported when they become available.
Deposit No. 1
Two in-fill holes drilled in Deposit No. 1 were also reported today. Hole MR1-06-83 was drilled in the north limb of the deposit on the same cross-section as previously announced holes MR1- 05-51 and MR1-05-54 approximately 500 metres north of the axis of the fold between the north and south limbs of Deposit No. 1. Hole MR1-06-83 was drilled up section of the other two holes and as such was targeted to intersect only the Lower Zone of Deposit No. 1. The Lower Zone in this location was considerably thicker than had been anticipated with a single intercept of 199.3 metres grading 64.0% iron and an estimated true thickness of 155 metres.
Hole MR1-06-84 was drilled approximately 100 metres north of the fold axis between the two limbs of Deposit No. 1 and up section of previously reported holes MR1-04-45, MR1-05-53 and MR1-05-66. Unlike the lower holes on this section, the 2006 hole targeted only the Lower Zone intersecting one continuous interval of 126.6 metres grading 67.5% iron with an estimated true thickness of 100 metres.
Conclusions
The drilling of Deposits Nos. 2 and 3 was designed to test the “blue-sky” potential of these deposits for a Satellite Deposits Scoping Study to be prepared in parallel with the Deposit No. 1 Definitive Feasibility Study. This Scoping Study is to investigate the implications of subsequent expansion of the Mary River operation based on incremental production from the satellite deposits using much of the infrastructure established for the development of Deposit No. 1. Gordon McCreary stated further that, “The spectacular initial high grade iron intercept released today on Deposit No. 3 and the additional drilling released on Deposit No. 2, clearly demonstrates the outstanding potential of the satellite deposits and further confirms the world class nature of the Mary River Project. In addition to thick intercepts of high grade iron in the form of hematite, the low levels of deleterious minerals such as phosphorous and sulphur in the initial holes on these satellite deposits bodes well for blending purposes at depth on Deposit No. 1, where somewhat higher sulphur levels occur.”
A schematic plan view interpretation of Deposits Nos. 2, 3 and 3A is available at www.baffinland.com together with some relevant pictures.
SGS Lakefield Research Limited performs assay and analytical work under a strict protocol designed for testing lump iron ores. Samples are then sent from Lakefield to Studien Gesellschaft für Eisenerz-Aufbereitung (SGA) in Germany, where they are composited for detailed metallurgical testing to ISO standards for iron ore. Baffinland expects to communicate additional batches of technical data over the next few months. As this data becomes available we will endeavour, in due course, to update the section of the Baffinland website at www.baffinland.com with appropriate drawings such as cross-sections, to assist in the interpretation of the data. This press release includes certain “Forward–Looking Statements” within the meaning of section 21E of the United States Securities and Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Baffinland Iron Mines Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement. Important factors that could cause actual results to differ material from Baffinland’s expectations are disclosed under the heading “Risk Factors” and elsewhere in Baffinland’s documents filed from time to time with the Toronto Stock Exchange and other regulatory authorities.
|
(True width is approximately 75-80% of core |
|
Drill Hole |
TD(m) |
From (m) |
To(m) |
Interval (m) |
SiO2 % |
Al2O3 % |
Fe% |
P% |
S% |
|
|
|
MR2-06-79 |
191 |
148 |
191 |
43 |
11.5 |
0.2 |
62.1 |
0.015 |
0.01 |
|
|
|
MR2-06-82 |
167 |
35.2 |
155 |
119.8 |
3.7 |
0.7 |
66.3 |
0.014 |
0.01 |
|
|
|
MR1-06-83 |
228 |
11 |
210.3 |
199.3 |
4.8 |
1.7 |
64 |
0.027 |
0.34 |
|
|
|
MR1 -06-84 |
213 |
60.1 |
186.7 |
126.6 |
1.1 |
1.3 |
67.5 |
0.011 |
0.02 |
|
|
|
MR3-06-108 |
260 |
90.2 |
260 |
169.8 |
1.8 |
1.1 |
65.8 |
0.025 |
<0.01 |
|
|
|
|