VANCOUVER, Sept. 4, 2012 /CNW/ - Flinders Resources Limited ("Flinders") (TSXV: FDR). Mr. Martin McFarlane, President & CEO, is pleased to announce that exploration claim applications covering 3,456 hectares have been submitted to the Swedish Mining Inspectorate. The claims secure approximately 60km of the prospective graphite trend between and along strike from Flinders' four graphite mining leases in Sweden.
Mr McFarlane states: "Flinders' principal focus is the restart of the Kringel graphite mine in 2013, and so be amongst the first flake graphite projects to be in production. The excellent exploration opportunity the Kringel area presents cannot, however, be ignored, so in parallel we are advancing our understanding of the considerable graphite potential of the region."
"Our recent regional geological work has identified a 60km graphite trend in between and along strike from our mining leases which has now been secured with exploration claims. This 60km trend, with numerous graphite occurrences and drill intersections, reinforces the Kringel area to be a flake graphite province as extensive as any of the early stage graphite projects being explored around the world today. Importantly, all of Flinders graphite claims are within economic transport range of Flinders existing graphite processing plant and infrastructure."
The areas were targeted by identifying the same electromagnetic and magnetic geophysical signatures that were used to discover Flinders' 4 graphite deposits containing the historic graphite resources. Limited systematic exploration been conducted outside the known mining leases.
Flinders plans to explore the area over the next 3 years. Based on historic drilling, historic resources and the extent of geophysical signatures along strike from known graphite occurrences a conceptual exploration target size is estimated between 20 to 40 million tonnes with a grade range of 6-12% graphite within 100m of surface within the Kringel trend. The potential quantity and grade is conceptual in nature, as there has not been sufficient exploration to define the target at this time; and it is uncertain that further exploration would result in the definition of a resource.
Of the 3,456 hectares applied for, a total of 697 hectares of claims have already been granted. The remaining claims are applications and Flinders has been confirmed by the Mining Inspectorate of Sweden to hold priority. The claims are expected to be granted before the year's end. Figure 1 shows the new claim areas.
On behalf of the Board
Martin McFarlane, President and CEO
The Kringel Graphite Project was the subject of substantial drilling by previous owners, and has an historic resource estimate of 6.9 million tonnes containing 8.8% graphite in 4 separate deposits. Historic resources at the Kringel mine site are 1.3 million tonnes @ 11.3% graphite. The historical resource estimates quoted are based on a NI43-101 report prepared by Albert Thamm of Coffey Mining in November 2011 which is available on SEDAR. The historic resource was calculated using a polygonal method and is broadly similar to CIM definitions "Indicated" and "Inferred". Data is historical in nature and was compiled prior to the implementation of NI 43-101 reporting standards. Flinders has not completed sufficient exploration to verify the estimates. Flinders is not treating them as National Instrument defined resources or reserves verified by a Qualified Person, and the historical estimate should not be relied upon. The Company does not have, and is not aware of, any more recent resource estimates that conform to the standards set out in National Instrument 43-101.
The qualified person for the Kringel project is Mr. Michael Hudson, a director of Flinders Resources Limited and Fellow of the Australasian Institute of Mining and Metallurgy , has reviewed and verified the contents of this release.
Certain information set out in this news release may constitute forward-looking information. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
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SOURCE: Flinders Resources Limited
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Jim Powell +1 647-478-5806