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Energio Continues To Build Strong Case For Agbaja Iron Ore Project In Nigeria

Energio (ASX: EIO) continues to receive consistent results from its ongoing reverse circulation drilling campaign at its Agbaja Iron Ore Exploration Project in Nigeria.

Results of the ninth batch of assay results are consistent with the previous 57 holes and 2,302 samples that have been processed and reported to date.

The latest 11 holes have high grade iron averaging from 45% to 50%.

Energio added that since the end of the fourth quarter 2011, it has drilled more than 530 reverse circulation holes, leaving the program at more than 70% complete.

This has resulted in more than 13,000 samples being acquired with about 9000 of these now in process between ALS Ghana and the ALS offices in Perth.

The company is also reviewing possible alternative locations to ensure sample analyses are undertaken in a timely manner as the laboratories in Perth remain busy.

The current drill program will progress until completed sometime in July 2012 subject to weather conditions.

The diamond core program will provide the specific gravity results necessary for determining a maiden JORC resource, which Energio anticipates will be delivered in the September quarter 2012.

The project has an exploration target of 1-2 billion tonnes of iron ore at a minimum of 30% iron, with rock chip samples within the project area returning grades of up to 55% iron, highlighting direct shipping ore potential.

Previously announced drill results have shown that the intersections are about 3 metres thicker in the main ore body compared to initial results, with grades of up to 55% iron.

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