TORONTO, ONTARIO -- (Marketwire) -- 09/18/12 -- Black Iron Inc. ("Black Iron" or the "Company") (TSX: BKI)(FRANKFURT: BIN) is pleased to report the results of the updated National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate on its wholly-owned Shymanivske Iron Ore Project in Kryviy Rih, Ukraine. The estimate includes Measured and Indicated mineral resources of 645.8 million tonnes at 31.6% iron, representing 355.1 million tonnes in the Measured category and 290.7 million tonnes in the Indicated category (refer to tables below for tonnage and grade details), based on a cut-off grade of 10% magnetite iron. This represents a 73% increase in the Measured and Indicated mineral resources for the Project from the work completed for the Company's Preliminary Economic Assessment in Q4 of 2011.
"We are extremely pleased with this revised resource estimate for the Shymanivske property," stated George Mover, Chief Operating Officer of Black Iron. "The completion of the definition drill program has resulted in a substantial increase in the Measured and Indicated mineral resource estimate, while continuing to confirm consistent grades. The revised Measured and Indicated resource numbers clearly validate the assumptions management has made to date for the Project, and will be used to form the basis for the Feasibility Study that is expected to be completed in the fourth quarter of this year. We believe further upside exists in the mineral resource at Shymanivske and will test this theory in the future with an exploration drill program on the northern area of the land package. At this stage, however, the priority remains to complete the Feasibility Study and develop the asset for first production towards the end of 2015."
Mineral Resource Estimate(i) for the Shymanivske Iron Ore Deposit
(cut-off grade of 10% magnetite iron)
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Fe Fe
Tonnes total magnetite
Category (millions) (%) (%)
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Measured 355.1 32.0 19.5
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Indicated 290.7 31.1 17.9
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Total M&I 645.8 31.6 18.8
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Inferred 188.3 30.1 18.4
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(i)Tonnage and grade numbers rounded to first decimal place.
Sensitivity Table - Shymanivske Measured and Indicated Resource(i)
---------------------------------------------------------------------------- Cut-Off Grade Fe Fe (% Fe Tonnes total magnetite magnetite) (millions) (%) (%) ---------------------------------------------------------------------------- 15.0 509.1 32.3 20.3 ---------------------------------------------------------------------------- 12.5 605.3 31.8 19.3 ---------------------------------------------------------------------------- 10.0 645.8 31.6 18.8 ---------------------------------------------------------------------------- Total 645.8 31.6 18.8 ----------------------------------------------------------------------------
(i)Tonnage and grade numbers rounded to first decimal place.
Sensitivity Table - Shymanivske Inferred Resource(i)
---------------------------------------------------------------------------- Cut-Off Grade Fe Fe (% Fe Tonnes total magnetite magnetite) (millions) (%) (%) ---------------------------------------------------------------------------- 15.0 132.1 31.3 20.8 ---------------------------------------------------------------------------- 12.5 166.1 30.4 19.3 ---------------------------------------------------------------------------- 10.0 188.3 30.1 18.4 ---------------------------------------------------------------------------- Total 188.3 30.1 18.4 ----------------------------------------------------------------------------
(i)Tonnage and grade numbers rounded to first decimal place.
Resource Estimate Details
The mineral resource estimate for the Shymanivske Project is based on results from 185 historical drill holes totaling 37,316 meters and 60 Black Iron drill holes, which were drilled during the Company's Twin Hole drill program and the Definition Drill program, totaling 16,518 meters and is effective as of September 2012. Watts, Griffis and McOuat Limted ("WGM"), Consulting Geologists and Engineers of Toronto, Canada, was retained to audit an in-house mineral resource estimate completed by Black Iron. Mr. Michael Kociumbas, P.Geo, Vice-President of WGM and Mr. Richard Risto, P.Geo, Senior Geological Associate of WGM, were retained by Black Iron as independent technical consultants and are Qualified Persons as defined by NI 43-101 and are responsible for reviewing and approving this mineral resource estimate. They have prepared, reviewed and approved the technical and scientific data contained in this news release. They also provided data verification and implemented QA/QC procedures for Black Iron's twin hole and definition drilling programs in 2011. The estimate is classified as a Measured, Indicated and Inferred mineral resource, consistent with the CIM definitions referred to in NI 43-101. Black Iron is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may affect its estimate of mineral resources.
The geological and mineral resource modelling parameters consisted of:
-- Creation of 3-D wireframes from the drill hole intersects using assay
intervals and major lithological units. The resulting wireframes were
modelled for four major banded iron formation horizons and followed the
pattern of folding and faulting in regional and deposit scale.
-- An Inverse Method ("ID2") was adopted to interpolate grade in the
current block model with block sizes of 10 meters by 20 meters by 15
meters. Total Iron (Fe total) and Magnetite Iron (Fe magnetite) were
modelled.
-- A density model was used based on a best fit regression line from all
Total Iron data versus the density which resulted from selected
pycnometer measurements. Both Total Iron and pycnometer tests carried
out in Mekhanobrchermet (MCM- Research Institute of Mineral Processing
in Ferrous Metals) in Ukraine were verified at SGS Minerals Services in
Lakefield, Ontario, Canada by use of same samples techniques.
Assaying was carried out by MCM Laboratories in Kryviy Rih, Ukraine. Sample preparation consisted of jaw crushing, followed by pulverization to 75 micron. Samples are analysed for magnetic iron using a magnetic saturation analyzer, which is similar to Satmagan. A split of the sample is also analysed by wet chemical/titration method for Total Iron Phosphorus, Sulfur, and Silica. Check assays are performed on sample pulps and rejects as internal QA/QC measures by MCM.
The QA/QC samples were inserted by geologists in Black Iron's core shed facilities as duplicates, blanks and standards and sent to MCM to verify the 2011 assay data. Blacks and standard samples were inserted at a frequency of one in every 20 meters. Duplicate samples were inserted at a frequency of one in every 50 meters. The QA/QC sampling was implemented and guided by WGM as a basic requirement to produce quality data. WGM also completed check assaying of selected pulps and core samples at SGS Minerals Services to validate Mekhanobrchermet's resuts.
About Black Iron
Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains a NI 43-101 compliant resource with 645.8 Mt measured and indicated mineral resources; consisting of 355.1 Mt measured mineral resources at 32.0% iron using a cut off grade of 10% and an indicated resource of 290.7 Mt at 31.1% iron using a cut off grade of 10% iron, and 188.3 Mt of inferred mineral resources grading 30.1% iron. The project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project which it intends to further explore to determine its potential. Please visit the Company's website at www.blackiron.com or write us at info@blackiron.com for more information.
The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by both Farshid Ghazanfari, P.Geo., Black Iron's Chief Geologist, and Rick Risto, P.Geo., Watts, Griffis and McOuat Limited, who are each a Qualified Person as defined by NI 43-101. For further information, please see the technical report of the Company, which is available on SEDAR at www.sedar.com.
Forward Looking Information
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the effect of these drill results on the Company's development and performance, the development potential of the Company and its projects, the timing and amount of future exploration and development of the project, receipt of necessary approvals, and the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information are based on certain assumptions and analyses made by the Company based on known facts at the time. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this press release, including, without limitation those described in the Company's public disclosure documents which may be found under the Company's profile on SEDAR. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking information, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking information prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking information contained in this press release. The forward-looking information contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.
Contacts:
Black Iron Inc.
Michael McAllister
Manager, Investor Relations
+1 (416) 309-2134
Black Iron Inc.
Matt Simpson
President & Chief Executive Officer
+1 (416) 309-2138
info@blackiron.com
www.blackiron.com
