Resource Upgrade to Measured and Indicated Status for Kipoi Central Supports Early Mining Start To Produce 32,000tpa Copper Metal



    PERTH, Western Australia, July 8 /CNW/ - Tiger Resources Limited
(ASX/TSX: TGS) ("Tiger" or the "Company") is pleased to announce the
completion of an updated resource estimate for Kipoi Central by Cube
Consulting Pty Ltd. The revised resource estimate is constrained within the
area that forms the first three years of production within the Stage 1 Pit
design.

    
    Highlights

    -   The high grade component of the Kipoi Central orebody that will
        provide feed for the Heavy Media Separation ("HMS") plant during the
        first +3 years of production has been upgraded to a Measured and
        Indicated Resource of 2.86Mt at 8.1% Cu containing 232,000 tonnes of
        copper (compared to the previously reported Inferred Resource of
        3.2Mt at 7.2% Cu containing 230,000t of copper).

    -   The conversion of estimated metal from Inferred only to Measured plus
        Indicated is approximately 100%.

    -   The resource estimate incorporates all results from the 25mx25m
        infill drilling programme.

    -   The significant upgrade in resource category gives a high level of
        confidence in the quality of the orebody and continuity of the high
        grade mineralisation.

    -   The updated resource estimate will form the basis of the definitive
        feasibility study into the proposed Stage 1 development of the
        project.
    

    Upgraded Mineral Resource Estimate for Kipoi Central

    The Directors of Tiger are extremely pleased with the result of the
revised and upgraded resource estimate as it provides significant support for
the strategy of developing a 900,000tpa Stage 1 mining operation at Kipoi
Central producing 32,000tpa of copper metal over an initial 3 year period from
a conventional open pit mine.
    The new resource estimate is based on the results of a 25m by 25m infill
drilling programme carried out over the high grade section of mineralisation
at Kipoi Central that was reported as part of the initial Inferred Resource
Estimate undertaken by Cube Consulting Pty Ltd in March 2008.
    The total of the Inferred resource reported in March 2008 was 13.4Mt at
3.3% Cu containing 439,000 tonnes of copper, 20,000 tonnes of cobalt and
1,416,000 ounces of silver. Included in the resource was a high grade
component (also to inferred resource status), determined by a lower cut off
grade of +5% Cu, of 3.2Mt at 7.2% Cu containing 230,000 tonnes of copper,
5,200 tonnes of cobalt and 441,000 ounces of silver.
    In order to determine the feasibility of a mining project at Kipoi the
Company undertook a 25x25m infill drilling programme to better quantify the
area of mineralisation within the proposed Stage 1 development. The drilling
was carried out between 8755950mN and 8756350mN and within the proposed
Stage 1 pit design. The Measured component of the updated resource is made up
entirely of either oxide or partially oxidised mineralisation.
    All the results from the infill drilling which included 63 new diamond
holes (8,345m) and 6 new Percussion holes (577m) were incorporated into the
updated resource model.
    Cube Consulting Pty Ltd has estimated the following Measured and
Indicated Resources for Kipoi Central between 8755950mN and 8756350mN.

    
    -------------------------------------------------------------------------
    Table 1  Measured and Indicated Resource (lower cut off 5.0% Copper)
    -------------------------------------------------------------------------
                             Mt         Cu%        Co%  Cu (000't) Co (000't)

    Measured                1.93        8.5        0.2        164          3

    Indicated               0.93        7.4        0.1         68          1

    Inferred                   -          -          -          -          -

    -------------------------------------------------------------------------
    Total                   2.86        8.1       0.15        232          4
    -------------------------------------------------------------------------

    Notes:

    The primary objective of the resource estimate was to undertake an update
of the resource model (March 2008) with specific focus on the area of interest
that forms the first three years of proposed production at Kipoi Central.
Tiger is earning a 60% interest in the Kipoi Project. Estimates of copper and
cobalt were undertaken. The Resources have been classified in accordance with
the current JORC Code.
    The following key points summarise the modelling method:

    -   Mineralised domain interpretations were based on a combination of
        detailed geological modelling, alteration characteristics and grade.

    -   Statistical analysis of 5 metre downhole composite data. High-grade
        assay cuts were applied where appropriate.

    -   Data was domained by host lithologies and weathering classification.

    -   Variography was used to characterise the spatial continuity within
        the mineralised domains and to determine appropriate estimation
        inputs to the interpolation process.

    -   3D block models were generated for each domain in Kipoi Central. The
        block model was constrained by the interpreted mineralised volumes.

    -   Grade interpolation was carried out using Ordinary Kriging (OK) into
        25mN x 25mE x 5mRL parent cells. A uniform conditioning (UC) estimate
        of copper resource was undertaken on a selection of grade cut offs
        under an SMU assumption of 5m x 5m x 2.5m.

    -   Search strategies were optimised using quantitative kriging
        neighbourhood analysis.

    -   Flagging of oxide, transitional and fresh material and assignment of
        density.

    -   Model depletion by best available topographical surface incorporating
        surface mining activity.

    -   Cube Consulting were not requested to consider any possible expansion
        of the Inferred Resource as drilling is still ongoing to test for
        extension of known mineralision along strike to the South, down dip
        and to the west in the footwall to the delineated mineralisation.
    

    Background

    Kipoi Central is one of five known copper deposits hosted in a 12km long
fragmented sequence of mineralised Roan sediments that have been mapped within
boundaries of the Kipoi Project in which the Company is earning a 60%
interest.
    In addition to resource drilling at the Kipoi Central deposit, resource
drilling has also been undertaken at the Kipoi North, Kileba and Judeira
deposits. The conceptual target for exploration is to define oxide and
sulphide resources in excess of 1 million tonnes of contained copper by end of
2008 to support future production of 100,000 tpa of copper metal.
    On the satisfactory completion of the Stage 1 definitive feasibility
study, the Company intends to immediately commit to a feasibility study to
evaluate the economic viability of constructing a Solvent Extraction and
Electrowinning ("SXEW") plant producing 35,000tpa of copper metal in
conjunction with the continuation of the Stage 1 HMS plant capacity of
35,000tpa. The SXEW plant will form Stage 2 of the proposed mining plan for
the Kipoi Project, and would be scheduled to come on stream within 3 years of
the start of the HMS operation. It is envisaged that ore from Kipoi Central
and the other deposits within the Kipoi project would be processed at the
Stage 2 development phase.

    (signed)

    D YOUNG
    Managing Director


    Additional Notes:

    The Information in this report that relates to Mineral Resources is based
on a resource estimate compiled by Mr Ted Hansen and Mr Rick Adams, both of
whom are members of the Australasian Institute of Mining and Metallurgy
("AusIMM"). Mr Hansen and Mr Adams are directors of Cube Consulting Pty Ltd.
Mr Hansen and Mr Adams have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to
resource estimation to qualify as Competent Persons as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (the "JORC Code") and to qualify as a
"Qualified Person" under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101"). Mr Hansen and Mr Adams consent to the
inclusion in this report of the matters based on their information in the form
and context in which it appears.
    Scientific or technical information in this news release other than that
relating to mineral resources of the Kipoi Project has been prepared by or
under the supervision of Mr David Young, Managing Director and a full-time
employee of the Company and a member of the AusIMM. Mr Young has sufficient
experience which is relevant to the style of mineralization under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the JORC Code and to qualify as a "Qualified
Person" under NI 43-101. Mr Young has verified the data disclosed in this news
release, including sampling, analytical and test data underlying the
information or opinions contained in this news release. Mr Young consents to
the inclusion in this news release of the matters based on his information in
the form and context in which it appears.
    Caution Regarding Forward-Looking Statements: The forward-looking
statements made in this news release are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the development
of a 900,000tpa Stage 1 mining operation and 35,000tpa Stage 2 SXEW plant at
Kipoi Central, involve known and unknown risks, uncertainties, and other
factors which may cause the actual results, performance or achievements of the
Company to be materially different from any anticipated future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the actual market prices of
copper, cobalt and silver, the actual results of current exploration, the
actual results of future mining, processing and development activities,
changes in project parameters as plans continue to be evaluated, as well as
those factors disclosed in the Company's filed documents.




For further information:

For further information: in respect of the Company's activities, please
contact: David Young, Managing Director, Tel: (+61 8) 9240 1933, Email:
dyoung@tigerez.com; Richard Taylor, Investor Relations, Tel: (+61 8) 9240
1933, Email: rtaylor@tigerez.com; Reg Gillard, Chairman, Tel: (+61 8) 9240
1933, Email: gillardr@crcpl.com.au; Company website:
www.tigerresources.com.au

Organization Profile

Tiger Resources Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890