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Market:	ASX
Sector:	General Mining
EPIC:	JMC

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Jabiru Metals

Jabiru Metals Limited (ASX: JML) is an emerging Australian base metals company which will make the transition to production following the development completion and commissioning of the Jaguar Zinc-Copper Project, located 300km north of Kalgoorlie in Western Australia.

Jabiru Metals upgrades copper zinc resource at Jaguar Project in WA

Thursday, March 18, 2010

Jabiru Metals (ASX: JML) has updated progress on the Jaguar Project Exploration programme, located 300km north of Kalgoorlie, Western Australia. Three diamond drill rigs are currently operating on site, with drilling to continue over at least the next two quarters.

Diamond drilling in the vicinity of the Bentley Cu-Zn-Pb-Au-Ag ore deposit has extended massive sulphide and footwall vein-style (stringer) mineralisation to the north for an additional 250m, giving a total strike extent of more than 400m above 4100mRL.

Results so far received for this drilling include: 10BTDD001: 3.3m @ 0.4% Cu, 19.1% Zn, 0.9% Pb, 0.5g/t Au & 124g/t Ag from 393m, 10BTDD003: 2.9m @ 1.6% Cu, 33.5% Zn, 0.9% Pb, 0.8g/t Au & 145g/t Ag from 352.6m.

The mineralisation now extends north to the proposed Bentley decline position. This is expected to have a significant impact on development plans and improve cash flows for the proposed Bentley mine as it will significantly shorten the timeline to first ore production.

The mineralisation defined over this northern extension interval remains open down-dip and along strike to the north. A possible new massive sulphide lens (Comet) has been identified in 10BTDD007, with the mineralised interval occurring within the stratigraphically upper part of the post-mineralisation dolerite sill that separates each of the massive sulphide ore lenses.

In addition, a series of geophysical/geochemical targets immediately north of Bentley are currently being drilled with the aim of adding new resources to the project that could influence medium term mine development plans.

The down plunge copper-rich Bentley Extension below 4000mRL will soon be tested by a drilling programme planned to commence in the June quarter. The aim is to scope out the scale of the Bentley Extension and tenor of mineralisation at depth, for longer term planning purposes.

Studies have recently been completed by Jabiru that indicate a positive economic case for pre-treatment of copper-rich stringer sulphide ore and subsequent flotation.

A study of vein orientations within the Stringer Zone at Bentley indicates that there is unlikely to be a significant sampling bias due to the relative orientation of diamond drill holes and sulphide veins within the Stringer Zone.

On this basis, it is possible to lower the cut-off grade for the Stringer Sulphide Resource and increase the level of confidence in the continuity of mineralisation, whilst maintaining an acceptable average grade for the resource. This has led to an upgrade of the Bentley resource.

The company said work on a next stage resource estimate for the Bentley deposit has also commenced, with completion expected in the June quarter. This will be presented as part of a combined Jaguar Project Resource and Reserve Statement.

It will incorporate all drilling completed above 3950mRL. A further resource revision is planned for later in 2010 as the Bentley Extension drilling programme advances.

Two diamond drilling programmes are currently in progress in the immediate vicinity of the Jaguar mine, with the aim of targeting additional resources to extend the Jaguar mine life beyond current reserves.

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