snelgrove dso discovery - mamba minerals

Option to Acquire the Snelgrove DSO Iron Ore Project

Highlights

• Option to acquire up to 100% of the Snelgrove DSO iron ore project.
• Located in close proximity to Mamba Minerals’ new DSO iron ore discovery in eastern Canada’s Labrador Trough.
• Recent successful drilling by Mamba Minerals confirms gravity anomalies in Snelgrove represent hematite enrichment.
• Snelgrove Project located approximately 65km east of rail which currently transports iron ore to multi-user Port of Sept-Iles.
• Capital raise by DJ Carmichael is being completed to fund due diligence process.
• Airborne Falcon Gravity Survey is set to commence shortly.

Vortex Pipes Ltd (ASX: VTX) (“Vortex” or the ”Company”) is pleased to advise it has entered into option agreements to acquire up to 100% of the Snelgrove DSO iron ore project located in Newfoundland Labrador, Canada, from TSX-listed Cap-Ex Iron Ore Ltd (“Cap-Ex Iron Ore”) and Preston Mineral Resources Ltd (“Preston”).

The Project, which consists of 593 continuous claims covering a total area of 148 square kilometres, adjacent to mineral claims and hematite deposits owned by Mamba Minerals Ltd (ASX:MAB). The hematite deposits include the recently discovered CLC deposit, the Blaire deposit and the RW deposit (refer Figure 1 and Mamba Minerals release dated 10 April 2013).
Recent Discoveries of DSO Hematite at Snelgrove and Airborne Falcon Gravity Survey

Recent drilling, along with geological and geophysical surveys reported hematite mineralization at Mamba Minerals’ CLC deposit to be 2,000m long, at least 125m wide and at least 235m deep. The discovery drill hole intersected 303m of hematite from a depth of 10m. The CLC hematite deposit continues at depth, is open to the north and is prospective to trend southerly (refer to Mamba Minerals’ ASX release dated 17 April 2013).

The Blaire hematite deposit is located approximately 500m north of CLC and adjoins the Project boundary. The RW deposit is located approximately 2,500m northeast of CLC. It also adjoins the Project boundary. These deposits form part of the reported hematite targets areas, measuring 7 kilometres strike by 250 metres width.

Mamba Minerals utilized data from a 200 metre spaced Falcon Gravity survey, flown in 2010, to identify the hematite mineralization it has since successfully drilled at its adjoining Snelgrove Lake Project.

Due to the success of the 2010 survey, Mamba Minerals has agreed to commission a joint low level, high resolution airborne Falcon Gravity and Magnetometer survey, conducted by Fugro Airborne Surveys. This survey will consist of approximately 754 line kilometres at 100 metre spacing of which 435 line kilometres is directly over the project area under option by Vortex.

Vortex expects to release the preliminary airborne survey results in the coming weeks.

As part of the option agreement, the Company is also pleased to announce the appointment of Cap-Ex Iron Ore Director Mr Brett Matich as a Vortex Director, effective immediately. Mr Matich was the inaugural Managing Director of ASX-listed Aztec Resources Ltd (“Aztec”) and brings more than 20 years’ experience in the mining industry. At Aztec, he was responsible for identifying the Koolan DSO hematite deposit and guiding the project towards development, prior to the Mt Gibson Iron Ltd takeover bid in 2006. In addition, Mr Matich identified and oversaw the discovery of Cap-Ex Iron Ore Ltd Block 103 magnetite deposit near Schefferville, only 50 kilometres northeast of Snelgrove.