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Kimber expands resources at Carmen target in Monterde, Mexico

Kimber Resources (TSE:KBR)(AMEX:KBX) announced Wednesday it continues to intersect strong gold-silver mineralization on the Carmen deposit on its Monterde property in Monterde, Mexico.

The company announced the results from assays in seven reverse circulation drill holes on the property.
Hole MTRD-511 intersected the Carmen deposit, and returned 14.0 metres grading, 4.5 grams per tonne (g/t) gold and 12.4 g/t silver. This hole also returned 5.8 metres of 6.4 g/t gold and 18.1 g/t silver, and 12.7 g/t gold and 9.7 g/t silver over 4.5 metres.

Kimber Resources' President and CEO, Gordon Cummings commented: "This Carmen Deep drill program continues to show evidence of strong gold-silver mineralization on various structures within the Carmen deposit, with a significant number of high grade gold-silver intercepts over mineable widths in this latest batch of drill results.

"The Monterde drill program has recently been further expanded, with three core rigs on site, and further drilling is planned on the Carmen and Veta Minitas deposits over the coming months."

Other notable results from the drill program include 5.2 metres grading 1.0 g/t gold in hole MTRD-514, and 4.0 metres at 1.9 g/t gold and 6.3 g/t silver in hole MTRD-515.

Hole MTRD-516 returned 3.6 g/t gold and 53.7 g/t silver over 2.15 metres, and 7.5 metres at 1.6 g/t gold and 22.3 g/t silver.

At the Monterde property, a preliminary economic assessment (PEA), which was updated in June 2011, estimates measured mineral resources of 2.54 million tonnes grading 0.88 g/t gold and 102.4 g/t silver for 71,700 ounces of gold and 8.37 million ounces of silver, at a 0.3% cut-off grade.

The PEA also estimated a 15.5-year mine life, in an open pit-underground production combination. Total life-of-mine capital costs are USD $119.3 million. Kimber also said it expects total production of 744,000 ounces of gold and 20.2 million ounces of silver over the total mine life

In other news, Kimber also reported its earnings for the full year, which came in better than analysts had expected.
For the full fiscal year ended June 30, the exploration company posted net loss of $2.97 million, or $0.04 loss per share, compared to a $4.13 million loss, or $0.06 loss per share, a year ago.

Analysts had expected Kimber to maintain its six-cent loss.

The company attributed its narrowed loss to last year's write down of previously capitalized costs for the Pericones and Setago grass roots exploration properties. The company had opted to pursue exploration of the Monterde property instead.

"During the year ended June 30, 2011 Kimber strengthened its cash position and has made significant advancements in its flagship asset, the Monterde project," Cummings added.

"We look forward to the prospect of continuing the advancement of the Monterde project towards a production decision and the exploration in and around the principal gold-silver deposits that comprise the Monterde project with the objective of increasing the existing mineral resources."

In Toronto, Kimber shares shed 1.29% to $1.53 as of 3:20 pm EDT.