Titan: positive drill, scoping results;resource upgrade15:34,...

Titan: positive drill, scoping results;resource upgrade
15:34, Friday, 24 March 2006

Sydney - Friday - March 24: (RWE Australian Business News) -
Titan Resources Ltd (ASX code: TIR) today reported further positive
drill results at its wholly-owned Widgie Townsite nickel deposit in WA.
The company also announced a revised resource estimate for the
deposit, resulting in a 20 per cent increase in contained nickel metal,
and positive results from a scoping study indicating a potentially
viable underground project.
Titan successfully completed three programs of drilling at
Widgie Townsite in 2005 to confirm grades and thicknesses of
near-surface, higher-grade zones within the main NO2 mineralised lens
and the narrower NO1 lens immediately to the west of NO2.
A program of two holes completed in February 2006 was designed
to provide a higher level of confidence on the continuity and extent of
higher-grade mineralisation within the upper 200m of the NO2 lens.
Results from this drilling have been "highly encouraging" with
intersections in the NO2 lens of 13m at 2.75% Ni in WDD125 and 5.6m at
1.96% Ni in WDD124.
Narrower, higher-grade intersections of 1.7m at 3.03% Ni in
WDD124 and 1.4m at 3.77% Ni in WDD125 were recorded in the NO1 lens,
located 5m to 10m west of the NO2 lens.
The results from this drilling continue to confirm and extend
the higher-grade zones within both the NO2 and NO1 lenses, but are not
included in updated resource estimates.

*****

The positive results returned from the 2005 drilling programs on
the Widgie Townsite deposit have been incorporated in a refined, more
constrained interpretation of the mineralised lenses and the resource
model has been updated.
The resource model update, completed by independent consultant
Hellman and Schofield of Perth, resulted in a JORC-classified resource
of 2.08 million tonnes at 1.89% Ni for 39,300 tonnes of contained nickel
metal, at a 1% Ni cutoff.
This represents an increase of 20% in contained Ni metal
compared with the previously reported July 2005 resource estimate.
The recent Titan drilling has also resulted in an upgrade in
resource classification, with 63% of the resource tonnes now reporting
into the higher-confidence Measured and Indicated categories.

*****

Utilising this updated resource model, a preliminary economic
scoping study evaluating the economics of underground development of
higher-grade zones within the NO1 and NO2 lenses in the upper 200m of
the Widgie Townsite deposit has been completed by consulting engineer
Rapallo of Perth.
The scoping study indicates a potentially viable underground
project with a pre-tax cash value of $14.8 million, based on a nickel
price of $17,000 tonne.
At current nickel prices ($20,400 tonne) the project has a
pre-tax cash value of $26.4 million.
The study also suggests "excellent potential" to expand the
project through mining of significant incremental tonnages located
immediately along strike and down dip of the higher-grade mining blocks
that form the basis of the scoping study.
Titan shares rose 0.2c to 5.6c today.
ENDS


GZ