🕐28.09.10 - 02:54 Uhr

Ram Resources - Cancellation of Motzfeldt Drilling Program



Ram Resources Limited ASX Announcement 27 September 2010 HURRICANE IGOR FORCES EARLY COMPLETION OF DRILLING AT MOTZFELDT Greenland focused resources company, Ram Resources Limited (ASX: RMR) ("Ram" or "the Company") regrets to announce that it has been necessary to conclude the drilling programme at the Motzfeldt Project in Southern Greenland early due the effects of Hurricane Igor. Prior to suspension of operations, 3 holes of a planned 8-10 holes had been completed at the Aries Prospect in the higher grade zone which had been identified from previous work. SRK-14 to 210m SRK-15 to 161m SRK-35 to 131m (short of planned depth) Hurricane Igor, which had earlier battered Bermuda, then moved north and impacted the Atlantic coast of Canada and Southern Greenland on 21-22 September.

As Igor approached Canadas Atlantic coast, NASA estimated the hurricane to be 1,000 miles wide.

Winds at Narsarsuaq airport were recorded at 98 knots (180 km/h) and at Motzfeldt, which is at a higher elevation than the airport, the wind speeds were estimated to be considerably higher. Whilst the Company and its contractors were prepared for the usual weather conditions in Greenland at this time of year, the hurricane was an unusually severe and destructive weather event, the effects of which were felt throughout Southern Greenland and Newfoundland in Canada. Prior to the hurricanes arrival, operations were suspended at site as a precautionary measure because of the forecast of high winds and, for safety reasons, all personnel were removed from site to the nearby town of Narsarsuaq. An inspection of the site after the winds had reduced revealed significant damage to equipment and the loss of spares and consumables.

This was despite the crews taking preventative measures prior to operations being suspended.

Over the past few days, the Company and its exploration contractor have conducted an evaluation of continuing with the programme, a process that has not been helped by continuing adverse weather. Having regard to the time and cost to obtain the necessary replacement items and to get the site operational again, together with fact that the exploration season becomes limited by the onset of winter in early October, the Board with much regret has decided to suspend the current programme and demobilise personnel and equipment.

Whilst on-the-ground activities have been suspended for this field season, the Company will continue with a number of activities designed to advance development at the project. These activities will include: Analysing the results of the three holes drilled, once received; Analysing additional surface sampling taken this season; Conducting a review of the geochemical relationships between the minerals; Carrying out a mineralogical analysis of samples; and Consolidating all the current and historical data relating to the tenement into a 3D database. Ram expects to conduct an extensive exploration programme onsite once the field season re-opens in Greenland in June of 2011. Please click here for the full announcement: http://www.stocknessmonster.com/news-item?S=RMR&E=ASX&N=506806 For and on behalf of the Board Michael Drew Managing Director For further information please contact: Mike Drew Managing Director +61 417 969 995
David Tasker / James Harris Professional Public Relations +618 9388 0944
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