Hummingbird Resources and Petmin Limited Announcement

28 June 2011
Hummingbird Resources and Petmin Limited Announcement

Successful Aeromagnetic Survey Results over Mount Ginka Iron Ore Target

Hummingbird Resources Plc and Petmin Limited are pleased to announce the results and interpretation of the aeromagnetic survey over the Mount Ginka iron ore target, held by their joint venture, Iron Bird Resources Inc ("Iron Bird") in Liberia. 

  • Aeromagnetic Survey proves the presence of a continuous magnetic unit, interpreted as iron formation extending along strike for approximately 20km:
    • The unit has an at surface width of between 150-250m
    • The unit is shown to extend to approximately 1,000m down dip.
  • This deposit is located only 20km to the south of the Arcelor Mittal Mount Nimba project; 40km to the east of the BHP Mt Kitoma project and only 15km east of the newly completed railway, built to transport iron ore from the region to the newly refurbished deep water port of Buchanan. 
  • Iron Bird has already commenced a programme of mapping, trenching and drilling to obtain samples for metallurgical work.

Aeromagnetic Survey Results
The prospect lies approximately 20km south of the Mount Nimba ridge, a historic major iron ore mine reportedly producing between 12Mt and 24Mt per annum of high grade direct shipping ore during the period 1964 to 1989, which has been re-opened by Arcelor Mittal.  Approximately 15km to the west of the Mount Ginka ridge lies the railway built to transport the Mount Nimba iron ore to the deep water port of Buchanan.
Iron Bird has recently completed a helicopter-borne aeromagnetic and radiometric survey over the Mount Ginka license.  Flight lines were 500m apart and flight height was 30 to 40m.  Total line km was 1,650km. 
The survey has successfully confirmed the presence of a continuous, elongated ridge feature containing strongly magnetic rocks over a substantial strike length of approximately 20km.  The strongly magnetic portion of the ridge feature is approximately 150 to 250m wide at surface, and geophysical modelling has indicated it to extend to a depth of approximately 1,000m down dip. 
The likely source of the magnetic signature are lenses of Archaean magnetite itabirite.  Such itabirite lenses have been mapped at the prospect by the US Geological Survey in the 1970's. 
In accordance with Phase 1 of the work programme under the agreement between Petmin and Hummingbird, Iron Bird has already commenced a programme of mapping, trenching and drilling to obtain samples for metallurgical work. The aim of Phase 1 of the work programme is to demonstrate whether a commercially saleable magnetite concentrate can be produced.
Iron Bird is a company jointly controlled by Hummingbird Resources Plc and Petmin Limited.  Currently Hummingbird Resources owns 85% of Iron Bird and as announced on 25th January 2011, on successful completion of Phase 1 of the work programme Petmin will invest a further US$1.5m in Iron Bird to increase its shareholding to 50%.  From that point on both companies have the option to contribute equally to any further fund raisings that are required.
Commenting today Dan Betts CEO of Hummingbird:
 "Prior to these results we knew that the deposit was exceptionally well positioned geographically due to existing infrastructure and surface grab samples taken ranged from 33-54% Fe magnetite iron ore.  Until now we had no knowledge of the potential size of this low lying feature.  These results, and the confirmation of the continuous widths, strike extent and depth of this target are hugely exciting and clearly show this project to have significant scale potential.  Altogether the Iron Bird joint venture represents significant upside potential with no cash cost to Hummingbird shareholders at this stage."
Jan du Preez, Petmin's CEO said
"The results of phase 1 of the exploration programme are very pleasing and we will be investing a further $1.5m in line with our commitment to Iron Bird to fund phase 2 of the programme, the project highlights the potential value of Petmin's new businesses strategy of investing astutely in projects which feed into the steel and infrastructure development value chain. "
David Pelham has reviewed and approved the technical information contained within this announcement on behalf of Hummingbird and Petmin, in his capacity as a qualified person, as required under the AIM rules.  David Pelham is Technical Director of Hummingbird and is a member of the Institute of Materials, Minerals and Mining.