- 141 Meter Intersection Includes 62 Meters of 49% Iron and Davis Tube Weight Recovery (DTWR) of 39%
- Thicker Sections of Iron Formation to Be Targeted in Phase Two Drilling, Commenced This Week
- Historical Concentration Tests Indicate the Potential Ability to Produce a High-Grade Concentrate of 68.3% (Neal and Ridell 1965, pg 53a) Iron With Minimal Contaminants
- Drilling Focused on 5km Radio Hill Iron Formation, Property Also Contains 12km Long Nat River Iron Formation
- First Drill Program Since 1965: Total Iron Content Noticeably Higher Than Historically Reported Acid-Soluble Iron Content
VANCOUVER, BRITISH COLUMBIA–(Nov. 30, 2011) - Rogue Resources Inc. (TSX VENTURE:RRS) (the “Company”) is pleased to announce the first results from Phase 1 drilling on its Radio Hill Iron ore project (“Radio Hill”) near Timmins, Ontario. The Radio Hill property is transected by a heavy gauge portion of the CN Rail mainline with an active rail siding. There is power and water in the immediate vicinity and highway 101 to Timmins is located only 8 km to the north of present drilling. In addition to the 5 km strike length of the Radio Hill formation the property contains a 12 km long magnetic feature known as the Nat River iron formation which is easily identified in both Company geophysical and government geological maps. The Nat River iron formation has not been explored aside from 6 drill holes in a concentrated area in 1960.
“These iron results are the first for the project in almost 50 years and we are excited by what we are seeing. There are very few iron projects with this type of infrastructure and access to mining expertise and now that we are seeing better than expected results we plan on doing everything we can to ensure we capitalize on our numerous competitive advantages,” comments Company President and CEO, Steve de Jong. “We look forward to seeing results from the second phase of drilling which will focus on the thicker portion of the Radio Hill formation as phase one focused primarily on confirming the geological structure in the southern portion outlined in historic work.”
To view geological and geophysical maps of the Radio Hill Project including the Nat River Iron Formation please click on the following link:
The recently completed first phase of drilling (3,140 metres) was comprised primarily of shallow drilling on the southern limit of the formation and Phase Two will target thicker sections. The first phase was conducted to confirm the historical assays and geological model. Assays for three holes have been received so far and as the Company has consistently submitted drill samples on a weekly basis since September a steady flow of results is expected into the spring. In addition to samples from Phase 1 drilling the Company has submitted core samples for two holes drilled in 2008 (RH 08-01, 02) and one in 2010 (RH 10-01). These holes were drilled for assessment purposes and to test for gold potential within the iron formation and were never analyzed for iron.
|Table 1: First Assay results from Radio Hill|
|*||Hole RH-08-01 was drilled in 2008 for assessment purposes on non-iron targets and was not analyzed for iron content until Sept, 2011.|
|**||Core intervals lengths are between 70 and 90% of true width|
|***||DTWR: Davis Tube Weight Recovery|
A complete drill table for the above results is available on the Company website by clicking on the following link:
The Company has now begun drilling the main portion of the formation in order to complete and publish a NI 43-101 compliant resource estimate likely in the inferred category after which point the Company will determine if a PEA is warranted.
HISTORICAL WORK AT RADIO HILL
The values, estimates, and quotes referenced below and in the section HISTORICAL WORK AT RADIO HILL are used by the Company to provide a target range and help guide exploration and are stated here for information purposes to inform the reader why the Company is interested in the area and should not be relied upon. Accordingly these rough estimates should not be relied upon for making investment decisions. Significant work needs to be completed by the Company prior to any publication of known resources or concentration characteristics of mineralized material at Radio Hill.
The Radio Hill project was first developed in the late 1950s and early 1960s by Kukatush Mining Corp. who spent an estimated $10 million in 2011 dollars on exploration and metallurgical work, including 140 drill holes and a number of metallurgical studies. Following resource definition, a study to determine the feasibility of a mine being put into production was conducted. The historical feasibility study conducted by FENCO Ltd. indicated a 3.5 concentration ratio (3.5 tons of iron ore produced 1 ton of concentrate) which would produce a high-grade concentrate of between 66% and 68.5%. At that time recovery and pelletizing tests were also conducted which included both laboratory and pilot testing of grinding, concentrating and pelletizing practices (Neal and Ridell, 1965). Historical metallurgical work (shown below) indicated material from Radio Hill could be concentrated to a high-grade, high quality concentrate with minimal residual deleterious elements. As background information for the reader, iron’s benchmark price is commonly set using a 62% Fe concentrate with recent premiums for higher grade concentrations as high as $5.00 for every 1% higher than 62%, and even higher increases above the 65% level. Although the rail bed was laid the 3.5km from the railway to Radio Hill, the project never advanced through to production due to weak iron prices.
To help guide exploration strategies at Radio Hill formation the Company has used the historic resource of 427 million tons of 27.3% iron (Gerson 1961) as a target. It is important to note the 27.3% iron refers to acid-soluble iron content whereas resources reported today are often reported using total iron content in addition to other analyses. Total iron content in drilling so far appears to be noticeably higher than the acid-soluble content reported in drilling in the 1960s. A number of drill holes reported today had significant drill intersections between 40 and 50% total iron with Davis Tube weight recoveries as high as 43%.
Highlights from historical reports at Radio Hill:
- Radio Hill Formation (Group): “The potential of this group is estimated at one billion tons.” (Gerson 1961, pg2 – reference to a 7,000 foot portion of the 3 mile (4.8 km) Radio Hill Iron Formation after the completion of 52,592 feet of diamond drilling, mapping, geophysical work and a 3,000 ton bulk sample.
- Nat River Formation (Group): “The potential of the magnetite bands as indicated by the ground magnometer survey is estimated at 30,000,000 gross tons of crude ore for every 100 feet of depth.” (Gerson 1961, pg3, pg57 – reference to 2500 foot section of the 7.4 mile (12 km) Nat River Iron Formation after the completion of 4,053 feet of diamond drilling. Iron values as high as 39.8% Fe (acid-soluble) were intersected at Nat River although it was unclear from historic reports the widths over which these values occurred.
Given the Radio Hill formation is known to extend below 1200 feet in depth, the tonnage potential for Nat River remains a potential addition to the overall project and could possibly augment future resources at Radio Hill. The entire property had an airborne VTEM and Mag survey completed in 2008 including the Nat River in which both formations are clearly defined. Aside from the airborne survey the Nat River iron formation has not seen any modern day iron exploration.
Table 2: Historical Concentration Characteristics
|Magnetic E&F Concentrate (%)|
|Titanium||Less than 0.01|
|Arsenic||Less than 0.01|
|Lead||Less than 0.01|
|Zinc||Less than 0.01|
|Source Data: FENCO Ltd. Feasibility Study by Neal and Ridell, 1965 (pg 53a)|
The percentages in chart above are based on historical concentration tests and have been included to provide a scope of the type of concentration characteristics that might be expected at Radio Hill and also to show the depth of the work done in the 1960s. These concentration tests were reported prior to the implementation of NI 43-101 and therefore should not be relied upon. The Company will be conducting concentration and metallurgical test work as exploration progresses at Radio Hill and will update all concentration tests to current N1 43-101 standards.
Micon International Ltd stated in its 2010 Technical Report on the Radio Hill Iron Property, “The historical metallurgical testwork completed on the Radio Hill property was well done, but additional work, including pilot plant testing and representative blended samples, must be undertaken before the economics of potential production can be assessed.”
QUALITY CONTROL AND ASSURANCE
All drill core samples have been split and shipped by the Company to SGS Lakefield, where the samples are prepared and analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature. Satmagan readings are done on each sample. A magnetite concentrate is produced using Davis Tube concentrator (DT) giving a weight recovery percentage (DTWR). The concentrate is then analysed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature. The company inserts systematic duplicates, blanks and standard samples every 30 samples to verify and assure acceptable consistency of analysis. SGS labs is an internationally recognized leader in iron ore analysis.
Kevin Montgomery P.Geo. is the qualified person for the purposes of National Instrument 43-101 and has reviewed the technical contents of this press release.
The Company also announces it has entered into a contract with Proconsul Capital Ltd. (“Proconsul”), a communications firm specializing in investor relations, marketing solutions and capital services for publicly-traded companies.
The terms of the contract are that the Company will pay Proconsul a fee of $5,000 plus HST per month, on a month-by-month basis, which contract is terminable with 30 days’ notice. The Company also intends to issue 100,000 vested stock options to Proconsul at a price of $0.20 for a period of seven years, all subject to regulatory approval.
TRIAL PRESS RELEASE Q&A VIA EMAIL AND TWITTER
The Company is also pleased to announce it will be responding to questions regarding today’s news sent via Twitter and Email between 10am and 2pm EST today. Please submit Question via email to email@example.com, with subject line “RRS Question”. Email questions will be answered via an upcoming audio interview.
To ask a question on Twitter please insert: @rogueresources and #RRSQA within your tweet. Twitter questions will be addressed in near-real time on the Company’s official Twitter feed: www.twitter.com/rogueresources.
ABOUT ROGUE RESOURCES
Rogue Resources is an iron exploration and development company with offices in Vancouver BC, and Timmins, ON. The Company has 36.9 million shares outstanding and approximately $2.5M in cash. The Company’s primary asset is its Radio Hill Iron Project located 85km southwest of Timmins, Ontario.
Key Company milestones expected in the near term are:
- Ongoing results from drilling at Radio Hill Iron Project
- Completion of Radio Hill resource estimate
- Announcement of JVs or other partnerships on non-core assets
- Appointment of key personnel to technical and management teams
ON BEHALF OF THE BOARD OF DIRECTORS
Steve de Jong, President & CEO
Follow Rogue Resources On:
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release, including statements regarding the use of the proceeds from the private placement, constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company’s current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company’s planned exploration activities, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management’s expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company’s exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
The historical estimates and feasibility values mentioned in this document are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 (“NI 43-101″). Accordingly, the Company is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term “ore” in this document is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability.
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 news release.