Montero Mining rallies on trenching, drilling results from Tumbili target at Wigu Hill

Montero Mining and Exploration (CVE:MON) announced Thursday results from trenching and drilling on the Tumbili target at its Wigu Hill rare earths project in Tanzania, sending shares up more than seven per cent.

The company said assay results were received for 10 trenches and for three deep drill holes completed on the Tumbili target, which located near Kisaki in Morogoro, in the second half of 2011.

Both the trench and the drill hole results support the value distribution observed to date, Montero said, where rare earth mineralized grades occur in breccias from 5.0 metres to 17.50 metres in width, according to Montero Mining & Exploration www.monteromining.com.

Results from the three drill holes include 328.1 metres of 0.59 per cent total rare earth oxide (TREO) in hole BH-TUM-004, including 16.9 metres at 1.56 per cent TREO and 5.00 metres at 1.93 per cent TREO.

Hole BH-TUM-005 returned 298.30 metres of 0.84 per cent TREO, including 8.50 metres of 2.53 per cent TREO and 17 metres of 2.03 per cent TREO, while hole BH-TUM-006 intercepted 270 metres of 0.42 per cent TREO, including 10.0 metres of 1.74 per cent TREO.

The trenching program, meanwhile, helped in understanding the geology of Wigu Hill through identifying areas of continuity of material grading more than 1.00 per cent TREO.

Notable trenching results included 14.00 metres of 1.55 per cent TREO, including 4.00 metres of 4.54 per cent TREO, 61.00 metres of 0.90 per cent TREO, 35.00 metres of 1.57 per cent TREO and 30.70 metres of 2.3 per cent TREO, including 5.3 per cent TREO over 4.00 metres.

The company said that in the eastern section, the grades in the massive carbonatite breccia zone on the Tumbili target ranged from 0.20 per cent to 0.60 per cent TREO, with higher-grade mineralization in drilled zones up to 1.74 per cent TREO over 10.00 metres, and narrow higher grade zones of 2.53 per cent TREO over 8.50 metres.

Results indicate that mineralization at the Tumbili target holds bulk tonnage potential, both at depth and along strike, said Montero.

"The trenching and drilling results confirm that the Tumbili area hosts a wider zone of rare earth bearing bastnaesite mineralization with the potential to add significant tonnage to the existing resource," said president and CEO, Dr. Tony Harwood.

"Tumbili remains open at depth and makes up only a portion of the core carbonatite intrusive in the central part of the Wigu Hill complex.

"Higher-grade carbonatite mineralization exists to the east at the Twiga and Tembo Zones and to the north at the Nyati target."

While awaiting more results from Tumbili, exploration is now focused on the Nyati target, located to the north of Tumbili, were higher grade carbonatite dikes zones with consistent widths have been identified, the company said.

Indeed, earlier this week, Montero unveiled grab samples as high as 26.58 per cent on the Nyati target. Sampling returned an average of 12.15 per cent total rare earth oxide (TREO) from a total of 26 samples ranging from values of 5.12 per cent TREO to up to 26.58 per cent TREO.

Montero Mining and Exploration Limited is a mineral exploration and development company with a Rare Earth project in Tanzania, uranium assets in Tanzania and Quebec, Canada and phosphate assets in South Africa. The company is focused on the development of our flagship Wigu Hill Rare Earth Element Project in Tanzania.

Source:  Montero Mining & Exploration www.monteromining.com by Deborah Sterescu

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