Last checked at 15 Jan 2009 09:54
15 January 2009
CHURCHILL MINING plc
("Churchill" or "the Company")
Churchill Mining Plc, (AIM:CHL) the Indonesia-focused resources company with a JORC compliant resource of 1.4 billion tonnes of thermal coal at its East Kutai Coal Project ("EKCP"), is pleased to provide an update released by Spitfire Resources Ltd (Spitfire), in which Churchill holds an interest.
NEAR-SURFACE MANGANESE INTERSECTED AT TALLY-HO PROSPECT, SOUTH WOODIE WOODIE
DISCOVERY UPGRADES EXPLORATION POTENTIAL OF SOUTHERN TENEMENT AREA
HIGHLIGHTS
Phase 2 drilling intersects near-surface manganese in most holes completed in the Southern Target Area.
14 holes intersect manganese, with best intercepts including:
6m @ 20.48% Mn (including 1m @ 36.0% Mn), 7m @ 21.8% Mn, 4m @ 15.8% Mn and 7m @ 15.1% Mn
Drilling defines a coherent zone of mineralisation extending over an area of 200m X 200m.
Priority target for follow-up drilling in 2009, particularly the untested central zone.
Exploration camp to be established in Southern Tenement Area.
Infill drilling planned following heritage clearances.
Discovery increases prospectivity of southern belt at South Woodie Woodie.
Spitfire Resources Limited (ASX: SPI - "Spitfire" or "the Company") is pleased to report the discovery of a significant zone of near-surface manganese mineralisation at the Tally-Ho Prospect, located within the Southern Target Area of its 80%-owned South Woodie Woodie Project in the East Pilbara region of Western Australia (see Fig. 1 below - South Woodie Woodie: Project Location Map).
The Company has received final assay results from the Phase 2 drilling program undertaken at South Woodie Woodie in November 2008. The program comprised 26 RC drill holes for a total of 3,372 metres of drilling, covering a series of priority targets within both the southern and northern areas of Spitfire's tenement package.
Significant intersections of shallow manganese mineralisation - including best intercepts of 6 metres @ 20.48% Mn from 12m (including 1m @ 36.0% Mn), 7 metres @ 21.8% Mn from 9m, 4 metres @ 15.8% Mn from 31m and 7 metres @ 15.1% Mn from 14m - were returned from the Southern Target Area.
The intersections have been interpreted as defining a coherent zone of mineralisation extending over an area of approximately 200 metres by 200 metres, and located about 30 metres north of an extensive ridge of high-grade manganese outcrop which was located during last year's field-mapping exercise (see ASX Announcement - 3 November 2008).
http://www.rns-pdf.londonstockexchange.com/rns/6856L_-2009-1-15.pdf
Figure 1 - South Woodie Woodie: Project Location Map
No drilling was conducted in the central portion of this zone due to the constraints of available heritage clearances, making this a high priority target area for follow-up drilling in 2009. Spitfire's geological team believes that these results, achieved in a completely virgin area where no previous drilling has occurred, are significant and have substantially upgraded the exploration potential of the Southern Tenement Block.
The South Woodie Woodie Project lies some 50km along strike to the south of the Woodie Woodie Mining Centre, owned and operated by Consolidated Minerals Limited. The project is located in an emerging manganese province which also includes Hancock Prospecting's Balfour Downs Manganese Project.
Drilling Summary
North
The Company drilled 26 RC holes for a total of 3,372 metres of drilling in the Phase 2 program. Most of the drilling was directed towards the Northern Target Area, where the Phase 1 drilling program completed earlier in 2008 intersected 12 metres of anomalous manganese grades in drill hole WWS041.
Preliminary drilling in the Northern Area returned results of 5 metres @ 6.47% Mn from surface in hole WWS055, 3m @ 6.55% Mn from 61 metres in hole WWS051 and 2m @ 7.05% Mn from 56m in hole WWS049. The Company considers the area adjacent to WWS055 prospective and further work is planned.
South
In the Southern Target Area, 11 drill holes (42% of the overall program) returned significant near-surface manganese intercepts ranging between 1 and 9 metres in thickness. This area has been named the Tally-Ho Prospect.
http://www.rns-pdf.londonstockexchange.com/rns/6856L_1-2009-1-15.pdf
RC Drilling at Tally-Ho in November 2008
Significant intersections from the November Drill Program are summarised below:
| Hole ID | Northing | Easting | RL | Intercept (m) | Mn grade (% Mn) | Depth to top of intersection (m) |
| WWS056 | 7528530 | 317361 | 423 | 2 | 10.16 | 22 |
|
|
|
|
| 4 | 15.75 | 31 |
| WWS059 | 7528377 | 317344 | 421 | 2 | 6.63 | 8 |
|
|
|
|
| 7 | 15.10* | 14 |
| WWS060 | 7528311 | 317531 | 410 | 2 | 10.50 | 11 |
| WWS063 | 7528312 | 317527 | 412 | 2 | 5.61 | 0 |
| WWS064 | 7528307 | 317509 | 412 | 1 | 5.03 | 12 |
| WWS065 | 7528292 | 317491 | 415 | 2 | 1.84 | 6 |
| WWS066 | 7528313 | 317489 | 414 | 2 | 5.96 | 9 |
| WWS067 | 7528312 | 317471 | 417 | 1 | 7.43 | 3 |
|
|
|
|
| 3 | 14.20 | 6 |
|
|
|
|
| 7 | 21.80 | 9 |
|
|
|
|
| 2 | 12.27 | 16 |
| WWS069 | 7528392 | 317315 | 423 | 2 | 7.44 | 17 |
|
|
|
|
| 2 | 6.82 | 21 |
| WWS070 | 7528413 | 317318 | 424 | 2 | 17.80 | 12 |
|
|
|
|
| 1 | 36.00 | 14 |
|
|
|
|
| 3 | 17.10 | 15 |
|
|
|
|
| 2 | 15.26 | 27 |
| WWS071 | 7528406 | 317346 | 427 | 1 | 5.72 | 14 |
|
|
|
|
| 2 | 6.41 | 23 |
| WWS049** | 7558977 | 313583 | 342 | 2 | 7.05 | 56 |
| WWS051** | 7559045 | 313582 | 341 | 3 | 6.55 | 61 |
| WWS055** | 7558325 | 314648 | 345 | 5 | 6.47 | 0 |
| * including 4m @ 17.6% Mn | ||||||
| ** Northern Target Area | ||||||
The intersections of immediate interest are broadly grouped within two distinct areas, to the north and east of an extensive ridge of high-grade manganese outcrop identified during the 2008 field-mapping program (see Fig. 2 below - Tally-Ho Prospect, Drill Hole Locations).
All of the holes in the Southern Target Area intersected similar stratigraphy comprising replaced and altered dolomites (the typical host rock for manganese mineralisation in the Woodie Woodie area) beneath a thin siliceous cap. Importantly, all of the intersections occur at or near surface.
http://www.rns-pdf.londonstockexchange.com/rns/6856L_2-2009-1-15.pdf
Figure 2 - Tally-Ho Prospect: Drill Hole and Outcrop Locations
The drilling has defined a consistent geological profile, as shown in the cross-section in Figure 3 below (Fig. 3 - Tally-Ho Oblique Cross-Section). The interpreted mineralised zone has been extrapolated to mimic the continuity seen in the outcrop that approximately parallels the section. The central zone and extensions both down dip and along strike represent priority drilling targets for 2009. These areas could not be drilled during the November program, due to heritage clearance constraints.
http://www.rns-pdf.londonstockexchange.com/rns/6856L_2-2009-1-15.pdf
Figure 3 - Tally-Ho Oblique Cross-section
The mineralised zone appears to dip approximately 4° to the north. The intersections tend to increase in both grade and thickness towards the central, untested area.
Hydrothermal alteration and silica replacement is visible in rocks immediately above and adjacent to the mineralised lens. The area is likely part of a pipe structure of unknown magnitude.
A large number of manganese 'leaks' have been identified within the southern tenement holding. These will be reassessed given that the overlying silicic cap is now known to be thin.
Compositional Analyses from Tally-Ho
Initial analyses of contaminants indicate they are well within export quality specifications, particularly iron, lead, and phosphorus. The high silica content of the mineralised intersections appears to occur as distinct zones that would liberate and hence upgrade upon crushing and beneficiation.
Compositional Results from the November Drilling Program are summarised below:
| Hole ID | From (m) | To (m) | Mn (%) | Fe (%) | SiO2 (%) | Al2O3 (%) | PbO (%) | P (%) |
| WWS051 | 61 | 62 | 10.0 | 26.4 | 33.6 | 3.94 | 0.017 | 0.032 |
| WWS056 | 23 | 24 | 12.7 | 4.62 | 58.4 | 8.22 | 0.022 | 0.04 |
| WWS056 | 32 | 33 | 17.1 | 10.2 | 43.4 | 6.65 | 0.019 | 0.05 |
| WWS056 | 33 | 34 | 13.6 | 9.34 | 50.8 | 6.63 | 0.019 | 0.042 |
| WWS059 | 14 | 15 | 19.5 | 7.28 | 49.8 | 3.53 | 0.017 | 0.033 |
| WWS059 | 15 | 16 | 16.5 | 4.01 | 57.4 | 5.25 | 0.018 | 0.018 |
| WWS059 | 16 | 17 | 17.3 | 5.53 | 50.6 | 6.99 | 0.016 | 0.02 |
| WWS059 | 17 | 18 | 17.1 | 4.71 | 52.1 | 7.11 | 0.017 | 0.016 |
| WWS067 | 7 | 8 | 15.5 | 1.85 | 54.5 | 11.4 | 0.016 | 0.016 |
| WWS067 | 8 | 9 | 15.3 | 3.55 | 56.1 | 7.97 | 0.018 | 0.022 |
| WWS067 | 9 | 10 | 18.4 | 6.69 | 47.6 | 7.12 | 0.021 | 0.022 |
| WWS067 | 10 | 11 | 25.1 | 5.83 | 37.7 | 7.06 | 0.016 | 0.027 |
| WWS067 | 11 | 12 | 27.6 | 3.76 | 38.1 | 5.98 | 0.017 | 0.025 |
| WWS067 | 12 | 13 | 20.9 | 7.83 | 42.6 | 6.14 | 0.018 | 0.054 |
| WWS067 | 13 | 14 | 16.5 | 11.2 | 43.2 | 6.43 | 0.014 | 0.078 |
| WWS067 | 14 | 15 | 23.4 | 8.36 | 32 | 10.1 | 0.017 | 0.075 |
| WWS067 | 15 | 16 | 20.7 | 14.2 | 29.6 | 7.92 | 0.014 | 0.07 |
| WWS067 | 17 | 18 | 16.6 | 9.14 | 45.2 | 7.45 | 0.019 | 0.042 |
| WWS070 | 12 | 13 | 14.9 | 20.6 | 31.3 | 5.9 | 0.014 | 0.082 |
| WWS070 | 13 | 14 | 20.7 | 7.34 | 41.3 | 8.12 | 0.017 | 0.02 |
| WWS070 | 14 | 15 | 36.0 | 3.34 | 29.4 | 3.24 | 0.014 | 0.012 |
| WWS070 | 15 | 16 | 14.9 | 6.24 | 54.2 | 7.04 | 0.022 | 0.021 |
| WWS070 | 16 | 17 | 20.7 | 9.39 | 39.9 | 6.7 | 0.016 | 0.024 |
| WWS070 | 17 | 18 | 15.7 | 11.8 | 44.2 | 6.51 | 0.02 | 0.025 |
| WWS070 | 27 | 28 | 25.1 | 8.83 | 31.7 | 6.74 | 0.016 | 0.104 |
Conclusions and Upcoming Activities
Spitfire's Phase 2 drilling program at South Woodie Woodie represents a significant breakthrough for the Company. The presence of drill-intersected manganese mineralisation at the Tally-Ho Prospect, in a virgin area, has established a major new drilling target for the Company during 2009.
Spitfire is planning to obtain suitable heritage clearances to conduct in-fill drilling within the central zone of the Tally-Ho Prospect, as well as to test depth and strike extensions of the mineralisation, as soon as possible.
Subject to receiving appropriate approvals and resourcing, the following sequence of activities is planned:
January/February 2009: Analyse results and plan follow-up drilling at Tally-Ho
March 2009: Complete heritage clearances for next phase of drilling
April 2009: Re-establish exploration camp to Tally-Ho Prospect
May/June 2009: Commence follow-up drilling
"Prior to drilling, the Southern Target Area was originally assigned a slightly lower priority and yet this area has delivered multiple manganiferous intersections either at or near surface," said Spitfire's Executive Chairman, James Hamilton.
"This represents an exciting discovery, providing an immediate target for follow-up drilling to test for the continuity of the mineralisation at Tally-Ho," he said. "In addition, it opens up the entire southern area for manganese exploration, including our 899 square kilometres of Exploration Licence Applications to the south."
Competent Person's Statement
The information in this release relating to exploration is based on information compiled by Mr. N. Cull who is a Member of the Australian Institute of Geoscientists. Mr. Cull is Exploration Manager for Spitfire Resources Ltd, and consents to the inclusion in this type of report of the information as presented. He has sufficient experience relevant to the style of mineralisation and to the type of activity described to qualify as a competent person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.'
ENDS
Released by: On behalf of:
Mr. Nicholas Read Mr. James Hamilton
Read Corporate Executive Chairman
Telephone: (61-8) 9388 1474 Spitfire Resources Limited
www.readcorporate.com.au Telephone: (61-8) 6382 3700
www.spitfireresources.com
| Churchill Mining Plc Managing Director - Paul G. Mazak +62 81510539186 / + 62 21 39832398 paul.mazak@churchillmining.com | Blue Oar Securities Romil Patel +44(0)20 7448 4000 Olly Cairns +61 (0)8 6430 1631 | Pelham PR Candice Sgroi +44 (0) 20 7743 6376 |
About Spitfire Resources
Spitfire Resources Limited (ASX Code: SPI) is an Australian resource company initially focused on the exploration and development of a portfolio of manganese exploration assets in the East Pilbara region of Western Australia. Spitfire listed on the Australian Securities Exchange in December 2007 following a successful A$6 million Initial Public Offer (IPO).
AIM-listed Churchill Mining Plc is the Company's largest shareholder, which it received as vendor consideration for the divestment to Spitfire of its asset, an 80% interest in the South Woodie Woodie Manganese Project in Western Australia's East Pilbara region.
The South Woodie Woodie Project comprises three granted Exploration Licences. The principal area of initial exploration focus lies some 50km down-strike from the 1Mtpa Woodie Woodie manganese mine.
Spitfire also announced that it had secured a substantial portfolio of new exploration tenure near the South Woodie Woodie Project, more than doubling its existing land holdings in the prospective East Pilbara region. The Company has lodged applications for four strategic tenements, covering a total area of 899 square kilometres, which are located approximately 13km south-east of the South Woodie Woodie Project.
Some of the new ground package abuts tenements managed by Consolidated Minerals, the former listed owner of the Woodie Woodie mine, and who was bought by private Ukrainian group Palmary Enterprises. Spitfire selected the ground after completing interpretive geological work suggesting that the area to the south-east could host strike extensions of a potential corridor of manganese host rocks.
In June 2008, Spitfire announced a significant addition to its asset base through an agreement to acquire a portfolio of advanced thermal coal projects located in Tasmania, providing the basis for a potential niche thermal coal export business.
ENDS