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Siburan Resources Secures New Zealand Tungsten Tenements

Siburan Resources (ASX: SBU) has been granted two permits covering the Kirwans Tungsten Project in New Zealand, which has already shown the potential to be a high tonnage tungsten deposit through previous exploration.

A broad zone of tungsten mineralisation has been outlined over an area of 1,400 metres by 600 metres and to a depth of 180 vertical metres.

Historical exploration has identified a trench containing tungsten mineralisation, based on a 0.1% cut-off, of 76 metres at 0.17% tungsten and 35 metres at 0.34%.

A previously drilled hole has been shown to contain six zones of tungsten, including 15 metres at 0.13% tungsten from 14 metres, 3 metres at 0.12% from 49 metres, 7 metres at 0.14% from 77 metres, 2 metres at 0.14% from 157 metres and 3 metres at 0.13% from 162 metres.

These zones include higher grade individual metres up to 1.07% tungsten. Overall, the entire hole from 0-263.2 metres averaged 0.05% tungsten.

The tungsten mineralisation also appears to be associated with anomalous copper and gold with results returned from individual metres up to 0.115% copper and 0.187 grams per tonne (g/t) gold.

Importantly, preliminary metallurgical test work results from the Kirwans diamond core indicate that mineralisation can be successfully beneficiated and recovered via conventional flotation.

The Kirwans Project, which covers 837.9 square kilometres, is located 12 kilometres east of the township of Reefton, on the west coast of New Zealand's South Island.

The exploration licence has been granted by New Zealand/s Ministry of Economic Development for five years and the prospecting permit for two years.

Gold Potential

A brief mapping and rock chip sampling program was undertaken by Auzex Resources (ASX: AZX) at the Kirwans Reward gold prospect in late January 2008.

The program investigated the potential for down-dip extensions to surface quartz vein/breccia-hosted gold mineralisation as seen in the abandoned Reward pit.

At least three major sets of veins have been defined. Rock chip sampling has returned values of 62.1g/t and 31.9g/t gold.

Forward Plan

Siburan plans to undertake a detailed geological mapping program to identify the extent of the quartz-scheelite veins hosting the tungsten mineralisation within the project area.

This is expected to identify new tungsten targets at the Kirwans Project.

Siburan will also begin a diamond drilling program to determine the strike and depth potential of the main tungsten mineralisation zone once when all regulatory and environmental permits have been granted.

Drilling is expected to delineate the size and grade of the tungsten mineralisation.

Rock chip samples from other tungsten targets within the project area have returned values of up to 8% tungsten which require drill testing.

Managing director Noel Ong said Siburan intends to develop the Kirwans Project and become a dominant player in the tungsten market.

"The tungsten market is developing into a supply driven nature as the demand for tungsten uses are increasing," he said.

"The prices of tungsten appear to be stabilising and recent reporting of Berkshire Hathaway investing into a Korean Tungsten Project highlight the exciting nature of this industry.

"There is no doubt that the world sees China's dominance as a need to source alternative supply."