RNS Number : 6666K
  Blackthorn Resources Ltd
  23 December 2008
   

    BLACKTHORN RESOURCES LIMITED

    23 DECEMBER 2008

    Mumbwa progress report

    Key Points

    *     Independent Geological Consultant report provides encouraging conclusions about project potential
    *     Safety improvements being implemented on site
    *     BHP Billiton progressing internal geological review and changes to drill pattern design
    *     Zambian Government provides updated cadastre map and confirms presence of overlapping licences outside drilling area


    Blackthorn Resources Limited ("the Company", "Blackthorn Resources") (ASX: BTR, AIM: BRL) is pleased to provide to following progress
update for the Mumbwa Joint Venture Project in Zambia ("the Joint Venture").

    Independent Geologists Report

    In June 2008, BK Consulting, an independent geological consulting firm was commissioned to provide an opinion regarding the geological
interpretation of the Mumbwa project based on field visits and information available at the time. Since that report, more assay data has
been made available and BK Consulting was requested to update their opinion based on the receipt of additional results and information.

    This recently received report concludes that the current data supports the view expressed in a number of other independent reports that
the Mumbwa Project has positive potential to host an important Iron Oxide-Copper Gold ("IOCG") system.

    The following are extracts from the independent geologist's report:

    "[Blackthorn Resources'] drilling on the Mumbwa project has delineated copper mineralization of potentially significant grade and size.
The mineralization is spatially related to a massive hematite replacement zone, possibly controlled by a regional structure, shares many
characteristics of the IOCG deposit model, and remains open in two directions along strike."

    "*. mineralized holes of the current [drilling] campaign, together with S36_001 drilled during [an earlier] campaign, appear to define a
mineralized system as much as 1 kilometer long in a north-south direction and up to 400 meters wide in an east-west direction*. The
mineralized area lies immediately west of, and parallel to, the massive hematite replacement body's western boundary (as mapped at the
surface), and is located at a southwesterly bend in strike, possibly the site of a structural intersection."*. "data available to date
indicate the Mumbwa copper mineralization is associated with very little gold of significance."

    "*. With continued success in additional step-out and in-fill drilling, this project*. may lead to defining an IOCG type copper deposit
of significant economic importance."

    "Further exploration stands a very good chance of greatly expanding or extending this discovery as the mineralized zone as currently
known appears to parallel a strong district-sized geophysical anomaly comparable in strength to, but much larger than, the geophysical
anomaly found over the super-giant Olympic Dam IOCG deposit in Australia."

    Managing Director Scott Lowe said "Recent results have been encouraging on face value, and this interpretation of available data gives
us confidence to continue exploration plans to better define and assess the projects' economic potential."

    Operations Update

    BHP Billiton has assumed management of operations as part of a transitional "hand over" phase of the Joint Venture.

    Safety improvements

    In November 2008, a serious but non fatal injury occurred on site involving a drilling subcontractor. Following a detailed and thorough
investigation of all activities, BHP Billiton in consultation with Blackthorn Resources is implementing a range of safety improvements at
the site.

    This has caused some interruption to operations, however delays have been kept to a minimum. Blackthorn Resources fully supports BHP
Billiton's safety improvement programme.

    Sampling and Analysis

    8,000m was drilled in Phase 3 producing 18 holes, with assay results to date reported for 10 holes (56%).

    Assay results for the remaining 8 holes will be announced as they become available, and are expected to be reported in calendar 2009.
This is later than was originally planned due to a range of operational issues including safety improvements, however actions are continuing
to be taken to minimise delays.

    BHP Billiton Internal Review

    In November 2008, BHP Billiton conducted a detailed review of the Mumbwa project involving internal expertise. The purpose of this
review was to incorporate recent results and interpret available geological information to plan additional exploration, including step-out
or infill drilling. This work by BHP Billiton is ongoing.

    Tenement Details - Map and Overlapping licences

    BHP Billiton holds and administers the exploration license for Mumbwa on behalf of the Joint Venture.

    As holder of the licence, BHP Billiton was recently supplied with updated information for exploration licences in the area, from the
Zambian Mines Development Department. This information included an updated tenement map produced by the Governments' new geographical
information mapping system. 

    In addition to the lease boundary details, BHP Billiton has received confirmation of the existence of some overlapping licences held by
third parties granted by the Zambian Government. These overlapping licences are not over ground currently being drilled, or over proposed
drill pattern areas. BHP Billiton will continue to administer the licence and is consulting with Blackthorn Resources on a strategy to
address this issue.

    Summary

    Blackthorn Resources remains very positive about this exciting project based on the receipt of encouraging results so far. As JV
partners, the Company intends to continue working closely with BHP Billiton to further explore and study the area with a view to ultimately
assessing the economic viability of the Mumbwa project.


 ATTRIBUTION  The information in this report which relates to Exploration
              Results at the Mumbwa JV Project has been reviewed and approved
              for release by Mr Michael J Robertson, MSc, Pr.Sci.Nat., MSAIMM
              who has 20 years experience in mineral exploration, and who is a
              full-time employee of MSA Geoservices, and has sufficient
              experience in relation to the style of mineralisation and type
              of deposit under consideration to qualify as a Competent Person
              as defined by the "Australasian Code for Reporting of
              Exploration Results, Mineral Resources and Ore Reserves" (The
              JORC Code 2004 Edition) and as a Qualified Person under the AIM
              Rules. Mr Robertson has consented to inclusion of this
              information in the form and context in which it appears. 


    Should you require further information please contact:

    Scott Lowe
    Managing Director
    Ph: + 61 2 9357 9000

    Fiona Owen
    Grant Thornton UK LLP
    Ph: +44 20 7383 5100


    www.blackthornresources.com.au


This information is provided by RNS
The company news service from the London Stock Exchange
 
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