MOORE-ROSS IRON PROPERTY

Zone Resources Inc. announces that it has acquired an option to earn a 100% interest in the Moore-Ross Iron property, consisting of approximately 35,059 acres, located in Nunavik, northern Quebec. The property, located in the Labrador Trough, covers historic Iron Formation mineralization, known as the Moore, Ross Mountain, Ross Mountain West, Eagle's Nest and Jasper Lake showings and several other unnamed areas of Iron Formation mineralization.

The property covers historic iron showings, initially discovered in 1948, with exploration carried out by Fenimore Iron Mines Ltd., up to the mid-1950's. Several samples, from different areas within the present property area, returned values ranging from 21.84% to 56.5% Fe.

The Ross Mountain showings were described by Lucien Eaton in 1949 as "...two hills of Iron Formation with overlying slate more than two miles long...these hills stand 100 to 200 ft., above the plains....There are many outcrops of iron formation for two miles west of Ross Mountain, some of them showing considerable oxidation and enrichment." Reviewing the Ross Mountain-Ross Mountain West areas of the project, on Google Earth, clearly shows abundant iron oxidation. To view the map, click here: http://www.zone-resources.com/pdf/map/moore-ross.pdf.

The Moore showings, located a further approximate 2 miles NW of the Ross Mountain West area, were described in a 1948 report, by Corking, who summarized the visit to the Moore showings "...to examine what appeared, on aerial reconnaissance, to be a sizable area of oxidization...". The report describes the Moore Showing area as "The showing consists of iron formation of the "hard-ore jasper" type which has been oxidized to an advanced degree, to form a...hematite...in one or two places, beds of hard, blue hematite are exposed. ..". Several grab samples from the Moore showings are tabulated in this report and range from 29.67% Fe to 67.35% Fe. Corking goes on to report "...The oxidized iron formation is exposed for perhaps 2000 feet along the flanks of a sharply V-shaped ravine which almost parallels the structure, and cuts it in such a way that the north side shows mostly oxidized iron formation and the south side, mostly red sandstone with some oxidized iron formation. The thickness of the exposed oxidized material is obscured by talus debris, but it probably exceeds 50 feet; if the structure has been interpreted correctly, there must be several hundred feet lying above which does not outcrop..."

MOORE-ROSS EXPLORATION HISTORY

The Moore-Ross Mountain property was explored in 1951 and 1952 by Fenimore Iron Mines. At that time, in remote parts of Québec, concessions were granted, and the property apparently consisted of a concession and a number of staked claims. The property was geologically mapped, in a meticulous way that is seldom seen in our more enlightened era. There were at least two teams of prospectors, who located iron occurrences. Showings were tested by trenches, and in 1952, the five most promising showings were tested by diamond drilling. Most of the drill holes were quite shallow (the deepest was 205 feet), and it is obvious that the purpose of the drilling was to assess the lateral extent of iron-bearing zones, rather than their thickness. Outcrop was poor over much of the property, overburden was often very thick (up to 160 feet), and drilling was, in most cases, the only way to outline a zone.

Six "showings" were drill tested, although it is clear that the Moore and Moore Extension showings are part of a single zone. The Star-Marie (or simply Star) showing yielded encouraging drill results, as did the Partington showing, but its location is uncertain. The Jasper and Ross Mountain showings did not stand up well to drilling and returned mostly low iron values.

Reading reports of the exploration program, it is clear that prospecting located several occurrences of enriched iron formation, which were referred to as DSO. However, none of these had any substantial size. Their work did outline several extensive zones of taconite. While this was disappointing in 1951, is a great starting point for a modern exploration program. The chances of developing a large body of taconite is excellent, and there is always the possibility of finding discrete zones of DSO. Modern geophysical techniques will assist in evaluating overburden-covered areas in a way that could only be dreamed of in 1952.

The following paragraphs give a brief description of the main showings and the highlights of the reported results.

Moore and Moore Extension
Following are descriptions of the Moore and Moore Extension showings from GM01452.

The Moore showing:

"This showing is located along a deep gorge running east-west and cutting across the structure of the Iron Formations. The original discovery was composed of a steep cliff in which the iron formations show a strong leaching and enrichment but a systematic sampling in 1950 revealed that all the samples were very high in silica and only one sample was really of ore grade.
Detailed geological mapping revealed the presence of two synclinal folds in drift-covered area on the North Slope of the gorge east of the original discovery. A long trench, K50 was opened up near the top of the cliff across the drift covered area and revealed enrichment of better grade in which systematic channel sampling revealed sections of enrichment rich enough in iron to be of ore grade separated by sections of lean ore over a total width of 75 feet
Table No 2 shows the assays obtained in the channel sampling done across the structure in trench K50 each assay represents a five foot section from east to west

The enrichment zone is characterised by typical massive brown ore containing vugs and pits due to leaching of the silica. the bedding la still visible in most places and in a couple of beds, there are streaks of very black powdery material which give the showing the typical bluish appearance in the iron ore deposits.
Sampling was also done in trenches dug along the cliff and at the bottom of the valley to the east and west side of the enriched sons. In every ease, the assays were too low in Iron and too rich In silica. At the bottom of the Moore valley, at the east end of Trench K54, there is an outcrop showing considerable leaching. A grab sample #155 assayed 55% Fe, 23.4% insoluble.
Across from the Moore showing on the south side of the valley, Trench J50, also shows good enrichment as shown in the following table in which the samples represent 5 foot sections listed from east to west.


It was found impossible to continue trenching on the extension of the trench due to the presence of permafrost in the deep overburden.
All along the south side of the Moore gorge, there are small enriched sections visible in the iron formation rich in silicate. One grab samples picked up at random 56.9% Fe, and 8.8% SiO2.
It seems evident that the best section on the Moore showing is that located along the east limb of the synclinal fold."

And for the Moore Extension:

"Since the enrichment found along the gorge was extended across the structure the extensions northward and southward were looked for along the projection of the strike. Southward,, no rock was exposed at the surface. Northward along the strike of the structure, two small exposures of enriched Iron formations wore found in a gorge 1,700 feet north of the Moore showing. This showing is believed to be the extension of the Moore. Test pitting was tried everywhere in the flat plain between the two showings but it was not possible to reach bedrock anywhere.
Stripping and trenching was done along both escarpments of Extension Gorge and enrichment was uncovered especially along the northern escarpment, thus extending the total length of the two showings to 2500 feet. The southern escarpment could not be stripped over any length on account of heavy overburden. On the northern escarpment, several trenches gave a good exposure across the strike over a distance of 190 feet.
In the Moore Extension showing, the structure is the same as in the Moore. It is composed of a series of anticlinal and synclinal folds striking north-westerly and plunging gently north or south, there is a definite swing towards the west of the axis of the folds across the Extension valley and It is very possible that it is the reason why the enrichment zone is wider in this section.
In the best section, in trenches M53, M55, M56, M60 and M57, the ore Is characterized by a very bluish black aspect which may be due to the presence of small amounts of manganese. Systematic channel sampling was done across the strike in every trench and the assays are listed below.


There are several widths up to 50 feet of ore -grade material in this enriched zone and It is quite possible that it extends westward In width for another 800 feet Into a narrow valley which runs down the north escarpment of the Extension Gorge. It was found impossible to dig tranches at this end of the working due to the permafrost which was reached at a depth of 2 to 5 feet.
The results obtained so far on the Moore and Moore Extension showings are encouraging enough to warrant a drilling programme. Ore is present in the showings at both ends of the structure. It is possible that these represent the tail-end of a larger ore-body under the overburden in the intervening space. It is also possible that parallel structures and enrichment are present or that there is still further extension of the enrichment northward and southward under the overburden. The only way to know is to drill and for this reason a diamond drill programme was outlined to explore the Moore and Moore Extension showings from one end to the other."

Fifty-nine drill holes were put down on the Moore and Moore Extension showings. The results are summarized in the following table. There are 9 drill logs for which locations are not known, and one drill hole location on a map, that has no corresponding log.


The 59 drill holes were all drilled vertically. As explained above, they were drilled primarily to determine the lateral extent of the iron mineralization in an area of extremely poor outcrop. Every hole which entered iron mineralization at the bedrock surface, also ended in mineralization, so that the thickness of the zone is not known. The deepest hole, M501, was 205 feet deep, and assays averaged 42.9% iron over 197 feet from the bottom of the casing at 8 feet, to the end of the hole.

Four drill holes at the northwestern and northeastern extremities of the drilled area intersected only very low grade (less than 15%) iron and may close off the mineralized zone in those directions. To the southeast and southwest, however, the zone appears to be open. The mineralized area tested by drilling measures 3250 feet from northwest to southeast, and 1700 feet from northeast to southwest.

An average iron grade was calculated for each drill hole, and the average of all the averages is 33.6% iron - excluding the holes that encountered less than 15% Fe. Because holes that intersected higher grades tended to be drilled deeper than those that intersected lower grades, a weighted average by grade and core length would tend to overstate the average grade and it is likely that an "average of averages" will more closely approximate the overall grade of the deposit.

Partington Showing
The location of the Partington showing is uncertain. It is believed to lie north-northwest of the Moore Extension and to form part of a zone that is continuous with the Moore and Moore Extension. There is no available drill plan, so the dimensions of the zone defined by the 15 drill holes (of which three encountered sub-marginal mineralization, i.e. less than 15% Fe) cannot be determined. The results are very comparable with the Moore drill results, with an average grade of 30.2% Fe, after eliminating the "miss" holes.


Star (or Star-Marie) Showing
The Star showing lies towards the southeastern end of the property. It was tested by 13 drill holes, of which four intersected less than 15% Fe. The ten holes that encountered mineralization define a zone that is a minimum of 2,800 feet long and between 600 and 1,000 feet wide. It is fully open to the north and south and only partially closed off on its east and west sides. The average grade after eliminating the four miss holes is 28.5% Fe. The following table summarizes the drill results.


Jasper Showing
The Jasper showing actually comprised a series of iron-rich floats (boulders) in a swampy area without outcrop. It was tested by 17 drill holes over a length of 2,200 feet and a width of 1,000 feet, but only two of these intersected mineralization grading over 20% Fe..

Ross Mountain Showing
The Ross Mountain showing was tested by nine drill holes of which only two returned assays of better than 20% Fe, and one of those was stated to contain "considerable sulphur", which is very detrimental to an iron ore.