Metallurgical drilling by Kimberley Metals at the Parkers Hill deposit of its Mineral Hill project in Central West New South Wales has returned long intersections of copper, lead, zinc and silver mineralization.

The diamond drilling program was carried out in late 2010 following a decision by the company to adopt a dual track development approach at Mineral Hill. It consisted of two diamond drill holes about 50 metres apart for a total of 303.9 metres in the cental and northern portions of the deposit.

The company has previously established indicated sulphide resources for the Parkers Hill Deposit of 1.2 million tonnes @ 1.9% copper, 1.2% lead, 1.2% zinc and 35 grams/tonne silver. The most recent program was designed to provide samples for grinding and metallurgical test work.

One hole targeted volcanics-hosted sulphide mineralization towards the northern end of the deposit. Both oxide and sulphide base metal mineralization was encountered for nearly the full length of the drill hole. Best results include 27 metres @ 1.8% copper, 0.2% lead, 0.3% zinc and 25 grams/tonne silver from 103 metres, and 14 metres @ 1.8% copper, 0.7% lead, 0.8% zinc and 8 grams/tonne silver from 134 metres.

The other hole targeted predominantly sediments-hosted sulphide mineralization in the central part of the ore body, with base metal mineralization again extending from very near the surface to greater than 120 metres down hole. Best results in this hole include 56 metres @ 1.8% copper, 1.2% lead, 1.0% zinc and 58 grams/tonne silver from 46 metres, including a particularly high grade intersection of 16 metres @ 3.5% copper from 76 metres, and 7.5 metres @ 2.0% copper, 0.4% lead, 1.3% zinc and 15 grams/tonne silver from 116 metres.

The Parkers Hill deposit is accessed from the main Mineral Hill decline via a drive about 130 metres below the surface. The three existing development drives within the ore body provide the opportunity for production to focus on higher grade stopes.

Kimberley has appointed mining contractor Pybar to provide underground mining services at Parkers Hill, with the Pybar team on site since early December 2010 to provide sufficient ore on stockpile for copper concentrate production in June 2011.

Priority work continues on completion of the environmental impact statement (EIS) for the Pearse project at Mineral Hill. All environmental specialist investigations have been completed and reports received.

The EIS is being expanded to reflect the dual track development of the Parkers Hill underground copper lead-zinc deposit and the Pearse gold-silver open cut. Submission of the EIS is expected within the next month while the regulatory timetable for project approvals remains on-track for mid-2011.

Refurbishment and modifications to the existing process plant at Mineral Hill remain on-target for commissioning and production from mid-2011. Work on the run-of-mine feed bin, primary crusher, and secondary crusher has been completed and electrical upgrade is in progress.

Mechanical works are now focused on the conveyors, screens and fine ore bins. Fabrication of new flotation cells has also commenced. Modifications to the flotation circuit will deliver increased annual process capacity of up to 250,000 tonnes.

Kimberley has appointed Stephen Lonergan as executive director, commercial. Stephen Lonergan was until recently general counsel and company secretary of CBH Resources and was closely involved in the establishment of the company through its 2008 spin off out of CBH. He has 30 years experience in the Australian and international mining industry and will continue as secretary of the company.

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