Zone Resources adds to its Labrador trough iron project

Sunday, 05 Jun 2011

Zone Resources Inc announced that it has acquired an option to earn a 100% interest in the Bob Lake Iron Property, consisting of approximately 7,500 hectares, located in Nunavik, northern Quebec. The Property is situated between the Moore-Ross Mountain Property to the north and the Girard Lake Property to the south bringing the total project size to 41,500 hectares in the "Labrador Trough Iron Project".

The Property covers a historic Iron Formation occurrence, called Bob Lake, which was described in a 1952 Frobisher Limited report as a new showing associated with a syncline structure. In addition to this, a 1952 Fort Chimo Mines map outlines the Bob Lake occurrence as Enriched Iron Formation within an Upper Iron Formation.

Zone intends to include the Bob Lake Iron Property in the recently announced airborne survey which is scheduled to be flown during the time period of June 10-15th, 2011.

Pursuant to the terms of the option agreement, Zone will pay a cumulative amount of USD 150,000 cash and issue 1,500,000 common shares over a three year period. The Bob Lake Iron Property is subject to a 2.0% Net Smelter Royalty. Zone shall have an option to purchase 1% of the NSR for the sum of USD 1,000,000 at any time up to when a production decision is made. The terms of the agreement are subject to regulatory approval of the TSX Venture Exchange.(sourced steelguru)