Cline News.......Confirms its Mega SizeCline Identifies New High Density Gravity Zones on Bekisopa Iron Properties in Madagascar
Market Wire, July, 2007
Cline Mining Corporation ("Cline" or the "Company") (TSX: CMK) is pleased to announce the results of the work carried out by Dr. Allan Spector on recently acquired iron properties in southern Madagascar.
The Company, through its subsidiary Iron Ore Corporation of Madagascar SARL ("IOCM"), owns the Bekisopa iron ore property in south Madagascar and has been evaluating other iron prospects and related development opportunities in conjunction with its strategic partners, Mitsui Matsushima and ThyssenKrupp.
The original Bekisopa permit covers an area of 25 square kilometres and has an extensive database of earlier exploration and test work prepared separately by BRGM, the French Government exploration company, the United Nations (Development Program) and the Government of Madagascar.
The Company has recently acquired the exclusive exploration rights (Autorisation Exclusive De Reservation De Perimetre Minier) from the Madagascar Government covering an additional area of approximately 2,900 square kilometres to the west and south of the Bekisopa iron deposit, the objective being to increase the existing resources to the level of a world scale iron ore mine.
In June 2007 the Company completed an extensive investigation of geophysical airborne and ground surveys of areas west and south of Bekisopa to identify prospective geophysical features. Dr. Allan Spector, a Qualified Person for the purposes of National Instrument 43-101, carried out the ground geophysical investigations on the identified airborne anomalies and has now presented his report (the "Spector Report"). Dr. Spector carried out 21 detailed gravity and magnetometer surveys on approximately 60 km of lines.
Four prospective anomalies were located. Beki 2 and Beki 3 are in the neighbourhood, parallel to, but separated from the historic Bekisopa iron deposit (Beki 1).
The Spector Report states that "The results shown (in Figure 5) demonstrate that the observed gravity features can be attributed to 3 high density zones, Beki 1, Beki 2 and Beki 3 each having a density contrast of 1.5gm/cc (iron formation versus quartzite) and each having a thickness of 50m. The bodies may be composed of varying blends of magnetite and non-magnetic hematite. Beki 3 is blind, iron formation is not evident at surface. The bodies are structurally controlled by a synformal structure. The gravity data was used to estimate total mass;
Beki 1 equals 575 million tons
Beki 2 equals 575 million tons (assuming strike length of 5000m)
Beki 3 equals 575 million tons (assuming strike length of 5000m)
Total.......... 1,725 million tons
Adopting the 150m level as the cut-off for open pit mining, the estimated total mass of the combined deposits is estimated to be 560 million tons.
The other geophysical prospects, zones C and F which lie 20 and 25 km southwest of Bekisopa, are described as follows:
"2.9 Zone C
The data shown in Figure 4.9 appears to indicate a prospective iron zone, 3000nT magnetic relief and 1 mgal gravity anomaly. Thin bedded iron formation is observed in outcrop."
"2.10 Zone F
A very prospective zone is indicated by the data in Figure 4.10; a 3 mgal gravity anomaly associated with 4500 nT relief. The geophysical features are strikingly similar to that observed over Bekisopa, i.e. a synformal structure."
Summary and recommendations of the Spector Report:
"In the Bekisopa Area we have identified 4 new iron prospects, Beki 2, Beki 3, Zone C and Zone F. These prospects merit drill testing to determine their economic significance."
The Company proposes to carry out the recommended drilling and exploration on its new Bekisopa area properties.
With respect to the original Bekisopa iron ore deposit owned by the Company (referred to as Beki 1 in the Spector Report), the data base reports the iron formations as being primarily magnetite with iron grades across the deposit at between 25 per cent and 65 per cent, averaging 45 per cent and the alluvial lateritic surface part of the deposit at grades of between 40 per cent and 65 per cent iron.
The results reported include extractions in the order of 70 per cent by magnetic separation with an additional flotation unit.
The United Nations data indicates that the resource tonnage of the deposit could approach 150 million tonnes, amenable to extraction by open pit methods.
The Company cautions that the resources referred to above are historical in nature, were compiled prior to the adoption of NI 43-101 and therefore are not compliant with NI 43-101 requirements. While the Company believes these historical results provide an indication of the potential of the property and are relevant to ongoing exploration, the Company has not independently analyzed the findings of the reports and no reliance should be placed on the findings of such reports.
The technical information contained in this News Release has been prepared and approved by Dr. Allan Spector a Qualified Person for the purposes of National Instrument 43-101.
Cline Mining Corporation is a mine development company focused on the exploration and development of uranium and iron-ore in Madagascar, gold in Canada and metallurgical coal in Canada for the international seaborne coal trade market. The Company website can be located at www.clinemining.com
MP