Shares in Montezuma Mining have jumped 19% after high grade iron ore mineralization was confirmed over a strike length of approximately 1,000 meters at Mt Padbury in Western Australia.

The company received the summary drilling data from the recently completed RC drilling programme at Mt Padbury from Sinosteel Midwest Corporation. Following the announcement, shares in Montezuma increased by 19.1% or 4.5 cents to 28 cents.

Assays were received for 76 hole RC drilling programme completed for 6,958 meters at the Jabiru Prospect, located near Meekatharra in Western Australia. The best results included RIRC172 20 meters @ 57.5% Fe from 3 meters 49 meters @ 60.2% Fe from 26m; RIRC173 74m @ 60.8% Fe from 13m and RIRC185 43m @ 60.4% Fe from 0m.

The intersections occur over broad down hole widths and provide significant encouragement for the upcoming maiden Mineral Resource Estimate scheduled for early 2010.

Per the terms of the sale of the iron ore rights at Mt Padbury to Sinosteel Midwest, if Sinosteel Midwest defines a JORC compliant iron ore resource in excess of 10M tonnes grading over 50% Fe, a further cash payment of USD 4 million becomes payable to Montezuma.

(Sourced from www.proactiveinvestors.com.au)