Mr. James Stewart reports

MOUNT MANNING PROPERTY UPDATE

Salmon River Resources Ltd. has provided a report on the progress of exploration at its Mount Manning exploration licence located in the Yilgarn region of Western Australia, approximately 210 kilometres northwest of Kalgoorlie. The property is located to the north and northeast of the nearby Windarling and Mount Jackson high-grade iron deposits currently being mined by Cleveland-Cliffs Inc. (formerly Portman Mining).

These iron deposits in the Yilgarn are of Archaean banded iron formation (BIF) type. Mineralisation is thought to be dominantly syngenetic, with the iron and silica being deposited from fumarolic exhalations. The original BIF undergoes enrichment to produce ores rich in some combination of haematite/goethite/limonite. Enrichment processes can include:

• Structural thickening of magnetite-rich layers involving remobilization and concentration of iron as hematite in structural zones via metasomatic or hydrothermal processes;
• Supergene leaching to remove chert or carbonate layers;
• Supergene replacement of magnetite by hematite;
• Supergene replacement of siderite and pyrite/pyrrhotite by goethite;
• Metamorphic recrystallization of a previously altered (enriched) BIF;
• Surface supergene processes such as lateritisation, mechanical and/or chemical weathering including the formation of secondary concentrations as placers.

To date, Salmon River has undertaken detailed geological mapping and ground magnetic surveying of the northern portion of the Mount Manning exploration licence in order to gain an understanding of the prospectivity of the area for direct shipping and magnetite iron ore. Prospective geology at Mount Manning comprises a narrow north-south-trending greenstone belt that contains several units of banded iron formation extending over 18 kilometres in the northern portion of the property and a further three kilometres in the southern extension of the property.

Detailed geological mapping and interpretation of associated structural data has identified two significant BIF units spaced 300 metres apart. The western unit runs the length of the property, varying in widths from 40 to 100 metres wide. The second unit is less continuous, comprising discontinuous folded lenses in the central area of the property passing to a more continuous unit further south with a width of 20 to 80 metres.

Ground magnetic surveying has been completed over the same area of the northern portion of the property in respect of which the detailed geological mapping was undertaken. The survey has provided high-quality, detailed ground magnetic information over select traverses, and will greatly assist in the planning of drill hole locations and the accurate modelling of magnetic horizons. The survey complements the detailed geological mapping and confirms the continuation of banded iron between outcrop exposures. The survey has also assisted in understanding the structural complexity of the BIF units as well as identifying structurally complex target areas with the potential to prove up large tonnages.

Salmon River intends to undertake a program of geophysical surveying and drilling to examine the potential for and extent of economically viable mineralisation on the property at an estimated cost for the next 12 months of $1.05-million, including tenement maintenance, environmental and community relations costs.

Qualified person

Andrew Spinks, BAppSc, GradDip (Mining), a member of AusIMM and a consultant geologist, is a qualified person as defined in National Instrument 43-101 in charge of the exploration on the Mount Manning project.