Mamba Minerals  is pleased to announce that diamond drilling at its Snelgrove Lake Iron Project  in Canada has discovered a new hematite deposit in the south of the project area. Snelgrove is located in the Labrador Trough in eastern Canada.  The discovery hole, MM-13-05, which still is being drilled at a 50 degree angle from surface, has intersected 275m of hematite ore. At current down-hole depth, geotechnical assessment has confirmed that the deposit is at least 218m deep and at least 90m wide based on the main ore body dipping at approximately 70 degrees from surface. As of this release date, hole MM-13-05 is still in hematite and drilling is ongoing. Mamba expects the true dimensions of the deposit to be better determined in immediate subsequent drilling.

Future drilling planned for DSO targets

A second drill pad (MM-13-06) is currently being prepared approximately 150m NW from MM-13-05. This will be used to test the same DSO target, with the azimuth reversed to drill perpendicular to the known hematite mineralization dip to better test width. Hole MM-13-06 will be stepped back approximately 60-80m from expected mineralization and planned for a 200m down-hole depth at a 45 degree angle. At least two more drill holes, MM-13-07 & MM-13-08, will commence drilling in this winter program targeting DSO. For the current winter program, the drilling targets were designed to be located close to water sources. Mamba’s summer program will, among other things, target the “Bryman Deposit” located in the middle of the project area as seen on the map on Page 3.

Four significant DSO targets (marked below in green) have been identified from gravity and magnetic anomaly data having a total area measuring 7km by approximately 250m. Geotechnical assessment reveals that Snelgrove has outstanding potential to host significant DSO hematite mineralization. A DSO deposit would potentially provide Mamba with relatively low capital expenditure, low operating costs and high NPV operation.

Previous Drilling

Mamba has also had outstanding success with four holes MM-13-01, 02, 03 & 04, which were drilled to test the depth and potential grade of the extensive magnetite ore that has been identified at Snelgrove through mapping, trenching, grab sampling, and geophysics (see purple magnetite area in the top northern section of the map on Page 3). Visible inspection of the core shows that each of these holes has returned thick intersections of magnetite ore, some up to 150m thick. Drilling intersections and geological logging to date support Mamba’s view that Snelgrove has excellent potential to host substantial quantities of magnetite, which could underpin a world-class beneficiation project. First assays from the magnetite holes are expected within three to four weeks, with assays from the hematite holes to follow in approximately six weeks.

Labrador Trough

The Labrador Trough is home to one of the world’s largest iron ore accumulations. The defined compliant resources in the Labrador Trough total 78Bt of iron ore, with annual production of about 50 million tonnes. The region already hosts global majors such as ArcelorMittal and Rio Tinto. Wuhan Iron & Steel, Mitsubishi, South Korea's Posco, India's Tata Steel, China Steel and Hebei Iron & Steel are among those companies which are in joint venture partnerships in the Labrador Trough. The majority of these deposits are lower grade taconite (magnetite) deposits. Along with these low grade deposits there are occurrences of high-grade DSO hematite deposits. Mamba Chairman Greg Burns said: “The hematite intersection is particularly exciting given that it started only 10m below the surface and is located just 60km from the existing railway, which runs to existing and expanding port capacity. There is also access to cheap hydro-electric power. The combination of the length of this intersection and the size of the DSO targets shows that this project could be substantial. In light of this, Mamba is now placing the emphasis on drilling its four hematite targets.”