November 3, 2011: Zone Resources Inc. (Zone) (TSX-V: ZNR) (Frankfurt: 7ZR) is pleased to announce that the company has expanded its Girard property in the Labrador Trough of northern Québec by optioning an additional claim group consisting of 46 claims totaling 5,335 acres. The newly acquired claims cover an airborne magnetic anomaly that corresponds to a magnetite iron formation.
The newly acquired claims cover airborne magnetic anomalies with an aggregate length of 11 kilometres. With this acquisition, the Girard property now encompasses a minimum of twelve separate magnetic anomalies with an aggregate strike length of some 75 kilometres. Ground checking of the magnetic anomaly on the newly optioned claims revealed exposures of magnetite iron formation over a width of approximately 200 metres, similar to other iron formation zones now being drilled in the western part of the Girard claim group.
To view the airborne magnetic anomalies visit the following link:
The newly acquired claims bring the total of Zone's Labrador Trough iron properties to 964 claims covering approximately 111,000 acres.
Pursuant to the terms of the agreement, Zone has the option to acquire a 100 percent interest in the property by issuing 2,000,000 common shares, making cumulative cash payments of $190,000 and incurring $2,000,000 of exploration expenses over a three-year period. This property is also, subject to a 2% net smelter royalty ("NSR"), of which Zone shall have an option to purchase 1% of the NSR for the sum of $1.5 million.
Technical material in this news release has been reviewed by Mike Magrum, P.Eng., a Qualified Person as defined in NI 43-101.
About Zone Resources Inc.
Zone Resources Inc. is a Canadian Iron exploration and development company with 4 major projects situated in the Labrador Trough of Quebec, Canada. The properties are near Adriana Resources' Lac Otelnuk Project and New Millennium's Kemag and Labmag Projects. Historical drilling on the Moore-Ross property includes a significant hole grading 42.9% iron over 197 feet. Over 37 drill holes, the primary iron mineral is hematite and iron grades ranged from 17.25% to 44.8%. The Company's shares trade on the TSX Venture Exchange under the symbol ZNR and on the Frankfurt Exchange under the symbol 7ZR.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
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Zone Resources Inc.
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