VANCOUVER, March 2, 2012 /CNW/ - Flinders Resources Limited ("Flinders") (TSXV - FDR). Mr. Martin McFarlane, President & CEO, announces that Flinders has commenced the Company's first diamond drill program at its 100% owned Kringel Graphite Project in central Sweden. The drill program aims to upgrade the historic graphite resources estimates to NI 43-101 report and resource standards, and test for extensions of the deposit below 50 metres and along strike.
Flinders' 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. A drill program of 35 holes for 2,500 metres is planned to upgrade the historic resources and produce a NI43-101 compliant resource at the main Kringel deposit. Historic resources at Kringel are 1.3 million tonnes @ 11.3% graphite. It is anticipated that the drill program will be completed by late April 2012, with the resource calculation to be completed by the end of June 2012.
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.
Mr McFarlane states: "We are certainly pleased to have achieved this milestone of first drilling so soon after listing of the Company. The Kringel project is unique, with a large, shallow and high grade historic resource that consists of 100% flake graphite, plus a fully permitted mill and tailings dam on site. We look forward to acquiring the data required over the coming months to upgrade the project from an historic to a NI 43-101 compliant resource. This information will then be used to develop a mine plan in line with Flinders' goal of restarting mining operations at the Kringel mine by late 2013."
The qualified person for the Kringel project is Mr. Geoff Reed, a consultant to Flinders Resources Limited and Member of the Australian Institute of Mining and Metallurgy (CP), has reviewed and verified the contents of this release
On behalf of the Board
Martin McFarlane, President and CEO
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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Jim Powell +1 647-478-5806