Central Iron Ore Ltd.: Drill Program Commencing at South Darlot Gold Project

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2012) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Central Iron Ore Ltd. (TSX VENTURE:CIO)

("CIO" or "the Company") is pleased to announce that drilling has commenced at the Mermaid Prospect which is a part of the Company's South Darlot Gold Project.

The drill program is based on a review of the historical data from the Barrick JV tenements.

Twenty four gold targets were identified from this dataset.

Highlights

Barrick Historical Data review:

  • 1,104 holes drilled on Barrick JV tenements.
  • 44,605m drilled on Barrick JV tenements.
  • 24 gold targets identified on Barrick JV tenements.
  • Significant gold intersections:
    • Mermaid Prospect
      • 5m at 348.9 g/t Au (including 1m at 1,510 g/t Au).
      • 3m at 13 g/t Au.
      • 4m at 7.9 g/t Au.
         
    • Endeavour Prospect
      • 3m at 88.8 g/t Au.
      • 8m at 23.6 g/t Au.

Proposed drilling program:

  • Mermaid Prospect
    • 6 drill holes for approximately 390m.
  • Endeavour Prospect
    • 8 drill holes for approximately 550m.
  • On completion of the drilling the Company envisages that it will have earned a 51% interest in the Barrick JV tenements. CIO can earn an additional 19% interest (equal to a total interest of 70%) by spending an additional AUD$250,000.

Proposed Drilling Program

Mermaid Prospect

The purpose of the drilling at the Mermaid Prospect is to define the geometry, orientation and confidence of the gold mineralisation, conduct metallurgical test work on gold bearing intervals and to drill a HQ diamond drill hole to collect geotechnical data in fresh rock.

The drill program will consist of 6 drill holes:

  • 3 holes for resource definition.
  • 2 holes for metallurgical test work.
  • 1 hole for geotechnical data.

Maps and diagrams relevant to the Mermaid Prospect can be found at the following links:

http://media3.marketwire.com/docs/cio918a.jpg

http://media3.marketwire.com/docs/cio918b.jpg

http://media3.marketwire.com/docs/cio918c.jpg

Endeavour Prospect

The purpose of the drilling at the Endeavour Prospect is to define the geometry and orientation of the gold mineralisation. Geotechnical data will be collected from the HQ diamond drill hole. If results permit, metallurgical test work will be conducted on gold bearing intervals.

The drill program will consist of 8 drill holes:

  • 5 holes for resource definition.
  • 2 holes for metallurgical test work.
  • 1 hole for geotechnical test work.

A long section of the Endeavour Prospect can be found here: http://media3.marketwire.com/docs/cio918d.jpg

Historical Data Review

Jonathan Smalley of BM Geological Services was contracted by CIO to build and analyse the historical data provided from Barrick Gold Limited as part of the joint venture agreement for the South Darlot Gold Project. The data consisted of 1,104 drill holes drilling some 44,635 metres. The dataset also included a vast array of geophyscial data which included gravity and magnetics. The table below describes the breakdown of drill information into identified targets. 24 targets have been identified and prioritised from the data review.

Prospect Holes Metres
Mermaid 36 2,636
Endeavour 9 950
British King 179 8,123
Loch Ard 71 3,553
Clonmel 104 5,278
Wee Jim 76 3,566
A1 24 1,282
Dead Horse 51 2,726
Other Prospects 551 16,521
     
Total 1,101 44,635

A map of these prospects can be found here: http://media3.marketwire.com/docs/cio918e.jpg

The significant gold intercepts are listed in the table below. The most interesting gold intercepts were recorded at the Mermaid, Endeavour and the British King prospects.

Prospect Hole Id Easting Northing AHD
(RL)
From To Width
(m)
Grade
(g/t Au)
Mermaid WDRC0099 327858 6906077 450 79 84 5 348.9
    Including         1 1,510
Mermaid PDERB0002 327867 6906120 450 11 14 3 13.0
Mermaid WDRC0111 327829 6906100 450 31 35 4 7.9
                 
Endeavour WDRC0101 328138 6905812 450 36 39 3 88.8
Endeavour WDR1220 328138 6905807 450 34 42 8 23.6
                 
British King BKRC0036 327451 6908340 450 15 18 3 27.6
British King WDRC0110 326818 6908207 450 85 86 1 26.1
British King BKRC0005 327312 6908329 450 40 42 2 17.8
British King BKRC0001 327251 6908340 450 31 33 2 15.2
British King BKRC0004 327291 6908330 450 36 39 3 14.5
British King BKR0002 326807 6908280 450 14 17 3 11.9
British King BKRC0028 327391 6908330 450 20 23 3 9.6
                 
Loch Ard WDRC0090 329848 6907357 450 9 10 1 12.6
Loch Ard WDR0770 329838 6907357 450 41 45 4 2.9
                 
Clonmel WDR0779 330338 6906657 450 29 30 1 6.6
                 
Wee Jim WDR0717 328788 6909757 450 8 9 1 5.5
Wee Jim BRC0151 328628 6909957 450 13 14 1 3.7
Wee Jim BRR0703 328688 6909957 450 7 8 1 2.2
                 
A1 BRC0093 327363 6906189 450 22 23 1 19.2
A1 WDRC0033 327363 6906167 450 37 39 2 4.3
                 
Dead Horse WBR0318 326738 6910957 450 21 25 4 1.8

SOUTH DARLOT GOLD PROJECT (Western Australia)

The South Darlot Gold Project area is approximately 320km northwest of Kalgoorlie and includes:

  • The British King Mine which is 100% owned by the Company and NI43-101 compliant. The British King Mine is 5km southwest of Barrick Gold Corporation Limited's Darlot Mine. The British King Mine is currently under care and maintenance.
     
  • 100% CIO owned tenement package covering 324km2.
     
  • The Barrick JV tenements, in which CIO can earn an interest of up to 70%.

Maps of the South Darlot Gold Project can be found at the following links:

http://media3.marketwire.com/docs/cio918f.jpg

http://media3.marketwire.com/docs/cio918g.jpg

100% CIO Owned South Darlot Gold Tenements

The Company's current 100% owned South Darlot Gold Project tenement package covers 324km2.

Project Tenement Status Area (km2)
South Darlot E37/882 Granted 141
South Darlot E37/1054 Granted 33
South Darlot E37/1085 Granted 24
South Darlot E37/1086 Granted 3
South Darlot E37/1106 Pending 123
British King M37/30 Granted 0.1
British King P37/7026 Granted 0.1

For the South Darlot Gold Project, the Company's strategy and objective will be to evaluate the gold prospectivity of the region, generate targets, expand the tenement position and acquire all access approvals. The Company currently has 7 prospective targets identified on its 100% owned tenements and will systematically evaluate these targets over the next 12 months.

Barrick Joint Venture Tenements

The Barrick JV tenements are situated southwest of Barrick's Darlot gold mine and are contiguous with CIO's current holdings in the area which includes the British King Mine which is 100% owned and NI43-101 compliant. The tenements covered by the Barrick Joint Venture are detailed below.

Project Tenement Status Area (ha)
Barrick JV M37/421 Granted 381
Barrick JV M37/552 Granted 200
Barrick JV M37/631 Granted 776
Barrick JV M37/632 Granted 595
Barrick JV M37/709 Granted 98
Barrick JV M37/1045 Granted 90
Barrick JV P37/7364 Granted 197
Barrick JV P37/7365 Granted 200
Barrick JV P37/7366 Granted 113
Barrick JV P37/7367 Granted 45

For the Barrick JV tenements, the strategy and objective of CIO will be to evaluate the gold prospectivity and deliver on target generation and access. The Company currently has 24 prospect targets identified on the Barrick JV tenements and will systematically evaluate these targets over the next 12 months. CIO has prioritised the exploration on the Mermaid and Endeavour Prospects.

The Company envisages that on the completion of the current drill program it will have earned a 51% interest in the Barrick JV tenements. CIO can earn an additional 19% interest (equal to a total interest of 70%) by spending and additional AUD$250,000.

QUALIFIED PERSON

Mr. Andrew Spinks B.App.Sc, Grad.Dip (Mining), a member of AusIMM, and a consultant geologist, a qualified person as defined in NI 43-101, has reviewed and approved the technical content of this announcement.

On behalf of the Board of Directors

CENTRAL IRON ORE LTD.

Brett Hodgins, President/CEO

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for iron ore or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's disclosure documents for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's page on SEDAR at www.sedar.com.

ABN: 32 072 871 133

Contact:
Investor and Media Inquiries:
Capital Street Group
(604) 988-8186 or TOLL Free IR Line: 1-888-684-1183
info@capitalstreetgroup.com
www.centralironorelimited.com

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