July 9, 2012 (Source: Canada Newswire) — VANCOUVER, Flinders Resources Limited ("Flinders") (TSXV: FDR). Mr. Martin McFarlane, President & CEO, is pleased to announce the results from the next 5 holes of a 37 drill hole program at the Kringel deposit in Sweden. To date, a total of 15 holes from a 37 hole drill program have been announced. Latest results include 9.7m @ 10.8% graphitic carbon ("Cg") from 26m in drill hole KRI12DD015 and 19.4m @ 8.0% Cg from 17m in drill hole KRI12DD013.
Mr McFarlane states: "Results from our drilling program continue to confirm historic grades and extend mineralization beyond the limits of the historic resource area. We have therefore expanded the current drill program by an additional 700 metres to ensure sufficient drill data is available for the upcoming NI43-101 compliant resource calculation due in mid-August."
A summary of all graphite intercepts greater than 5 metres in width are shown below in Table 1. In addition multiple graphite intercepts of less than 5 metres width have been discovered but are not reported here. A plan showing the Kringel mine lease, historic drilling and the location of the current program is shown in Figure 1.
The Kringel Graphite Project was the subject of substantial drilling by previous owners, and has an historic resource estimate of 6.9 million tonnes containing 8.8% graphite in 4 separate deposits. Historic resources at the Kringel mine site are 1.3 million tonnes @ 11.3% graphite. The historical resource estimates quoted are based on a NI43-101 report prepared by Albert Thamm of Coffey Mining in November 2011 which is available on SEDAR. The historic resource was calculated using a polygonal method and is broadly similar to CIM definitions "Indicated" and "Inferred". Data is historical in nature and was compiled prior to the implementation of NI 43-101 reporting standards. Flinders has not completed sufficient exploration to verify the estimates. Flinders is not treating them as National Instrument defined resources or reserves verified by a Qualified Person, and the historical estimate should not be relied upon. The Company does not have, and is not aware of, any more recent resource estimates that conform to the standards set out in National Instrument 43-101.
The qualified person for the Kringel project is Mr. Geoff Reed, a consultant to Flinders Resources Limited and Member of the Australian Institute of Mining and Metallurgy (CP), has reviewed and verified the contents of this release. Assaying was completed by ALS Chemex in their Vancouver Laboratory. The technique used for determining graphitic carbon was Leco Direct combustion and infrared absorption, ALS Chemex method code C-IR06. Drill holes were sampled over 1 metre intervals. Duplicates, repeats and blanks were inserted according to standard industry practice. It is interpreted that reported drill hole intercepts approximate the true width of mineralization.
On behalf of the Board
Martin McFarlane, President and CEO