Spitfire Resources Limited announced that it has identified a zone of direct shipping ore grade Woodie Woodie style mineralization within the recently discovered Contact North deposit at its South Woodie Woodie Project in the East Pilbara Region of WA.

The company has received further results from the recently completed Phase II drilling program at Contact North which have identified a significant pod of high grade manganese mineralization, featuring by far the best Mn grades seen at South Woodie Woodie.

The best results are spread over three individual holes with 1 meters comp RC assays returning Mn grades above 40% manganese, including a best result of 8 meters @ 40.33% Mn from 91 meters depth at hole CON138.

The drilling has so far defined an extensive zone of near surface manganese mineralization at Contact North further extending the deposit to approximately 650 meters by 520 meters which still remains open in most directions. The continuity of this manganese layer, which averages between 7 and 20 meters in thickness, combined with the presence of an internal layer of high grade material averaging between 30% to 40% Mn, makes this a highly attractive exploration target for Spitfire from a future mining perspective, consistent with its objective of discovering and developing low cost manganese deposits which can be exploited by open pit mining.

Future Program
With the success of using Gradient Array IP surveys to help identify the Contact deposits Spitfire is set to commence a major campaign of GAIP surveys at the South Woodie Woodie project. Three new prospective areas are to be targeted in this campaign with a total of 27.8 square kilometers selected for this survey set to start in September 2011, with additional areas to be surveyed in early 2012.

The company is planning to resume RC drilling at the deposit in October as part of its Phase III drilling program at South Woodie Woodie. This next phase of drilling will focus on:

Extension drilling to identify the boundaries of the Contact North deposit

In fill and extensional drilling around the newly identified high-grade zone with a view to identifying potential primary sources of this direct shipping grade material

In fill drilling to enable a maiden JORC compliant resource to be calculated for Contact North by the end of this calendar year

Initial drilling to test newly identified exploration targets from the Gradient Array IP survey

A maiden JORC resource for the Contact deposit is expected to be completed by the end of September. In addition, metallurgical test work on material from both Contact and Contact North is continuing, and results will be reported as they come to hand.

Mr John Mackenzie MD of Spitfire Resources Limited said that "This is a tremendously exciting development. Not only have we uncovered Spitfire's first high grade pod of direct shipping grade but we are increasingly confident of more discoveries as we continue to build our understanding of the geological formation and distribution of manganese mineralization in the area."

He added that "We have invested significant time and expertise in mapping the region and the consistency of our results clearly demonstrates we're doing things right. Our team is highly experienced in manganese with direct experience of the Woodie Woodie deposits and I am confident this is just the beginning in terms of exploration success and building a significant resource inventory. We are very excited and encouraged by these developments and look forward to reporting additional results from South Woodie Woodie over the coming months."