Last checked at 20 Jul 2010 07:00
July 20th, 2010
Connemara Mining Company Plc
("Connemara Mining", "Connemara" or the "Company")
Drilling Extends High-Grade Zinc-Lead Mineralisation
at Stonepark North Zone in Limerick
| ·; | Drilling at Stonepark North has now defined a zone of zinc-lead mineralization with a strike length of at least 650 metres |
| ·; | Hole 55 intersected 4.9m at 10.57% zinc and 3.05% lead from 195.0 metres depth, including a 2.75m interval at 16.47% zinc and 5.26% lead |
| ·; | 10,000m of diamond drilling planned in Limerick for 2010 |
| ·; | £1.06m raised to fund Connemara's drilling programme in 2010/2011 |
| ·; | Drilling ongoing with two rigs on site |
Connemara Mining (AIM:CONN), the AIM listed Irish zinc explorer, is pleased to report additional results from the ongoing drilling programme in Limerick. The programme is a 75/25 joint venture with Teck Ireland Ltd., a subsidiary of Teck Resources Limited - Canada's largest diversified mining company. Teck Ireland is the operator
Hole 55 intersected a 4.9 metre zone of massive sulphides grading 10.57% zinc and 3.05 % lead from 195 metres depth, including a 2.75m zone at 16.47% zinc and 5.26% lead. Hole 55 is located approximately 150 metres northwest of hole 45 which intersected 7.5 metres at 19.2% zinc and 8.5% lead from 209 metres(see press release of April 23, 2010).
Drilling in the Stonepark North zone has now defined a flat-lying zone of zinc-lead mineralization with a strike length of at least 650 metres in a north-south direction and around 100 to 150 meters wide. The zone is located approximately 2 km north of the original Stonepark discovery and appears to represent the shallower, up-dip portion of a larger mineralizing system. The zone is still open to the north and south.
Drilling results are summarised in Table 1.
Table 1: Stonepark North Drilling Highlights
| Hole ID | From (m) | To (m) | Thickness (m) | zinc (%) | lead (%) |
| TC-2638-055 | 195.0 | 199.9 | 4.9 | 10.57 | 3.05 |
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| Including: |
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| 196.75 | 199.5 | 2.75 | 16.47 | 5.26 |
| TC-2638-0531 | 209.4 | 216.25 | 6.85 | 10.47 | 3.68 |
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| Including: |
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| TC-2638-053 | 212.80 | 215.55 | 2.75 | 19.76 | 6.99 |
| TC-2638-0511 | 221.40 | 228.95 | 7.55 | 4.88 | 1.49 |
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| Including: |
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| TC-2638-051 | 224.05 | 225.05 | 1.00 | 21.90 | 7.26 |
| TC-2638-0452 | 209.10 | 216.55 | 7.45 | 19.24 | 8.52 |
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| Including: |
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| TC-2638-0452 | 211.85 | 216.10 | 4.25 | 26.64 | 12.30 |
| TC-2638-0382 | 251.40 | 253.20 | 1.80 | 5.65 | 0.91 |
| TC-2638-0363 | 202.70 | 208.05 | 5.35 | 13.22 | 3.18 |
| TC-2638-0324 | 207.60 | 215.40 | 7.80 | 5.18 | 2.68 |
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| Including: |
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| TC-2638-0324 | 214.05 | 215.40 | 1.35 | 10.40 | 2.16 |
| TC-3638-0265 | 216.05 | 223.35 | 7.20 | 13.07 | 2.23 |
1Reported June 15th, 2010, 2Reported April 23rd, 2010. 3Reported March 2nd, 2010. 4Reported January 20th, 2010. 5Reported Sept. 4th, 2009.
Two drill rigs are currently on site and approximately 10,000 metres of diamond drilling is planned for 2010.
John Teeling, Chairman of Connemara Mining said, "Big high grade Irish style deposits are what we are looking for in Limerick. To date the results are encouraging. The latest drill result reported today, Hole 55 has significant commercial grade zinc and lead over good widths at a relatively shallow depth. The Stonepark North discovery continues to grow in size and importance. Already at least 650 metres in length and at least 100 metres wide the zone is open to the north and south. This reasonably shallow zone is flat lying with excellent grades of zinc and lead. These results enhance the potential of the Limerick properties. The recent placing ensures that Connemara is now fully funded for the 2010/2011 Stonepark work programme. We will also drill the prospective 100% owned licences in Thurles - adjacent to the large Vedanta owned Lisheen zinc mine"
This announcement has been reviewed and approved by the Company's technical director Graham Reid (P.Geo) in his capacity as the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange. Mr Reid is a Member of The Institute of Geologists of Ireland (IGI) and The Society of Exploration Geophysicists (SEG) and has over 30 years experience in mineral and site investigation fields.
About Connemara
Connemara Mining holds an extensive portfolio of zinc exploration licences in Ireland, which is one of the world's main zinc producers, with two of the world's largest zinc mines, Navan (Boliden) and Lisheen (Vedanta). Connemara holds 16 licences in the Limerick region, where at least three significant zinc discoveries are being explored; the Connemara/Teck discovery at Stonepark, the Minco/Xstrata discovery at Pallas Green, adjacent to Stonepark, and the Belmore/Lundin discovery. The large Lisheen zinc mine owned by Vedanta lies 30 kilometres northeast of Stonepark.
About Zinc
Zinc is used in cars, roofing and white goods. Its properties make it suitable for die casting. It is the major element in galvanising. While zinc use is declining in the West, it is growing rapidly in the BRIC economies. World growth rates are expected to average 4% in the future as BRIC economies industrialise.
Supply is at best slow growing. Ireland is a major Zinc producer with two of the largest zinc mines in the world, the Tara mine at Navan and the Lisheen mine near Thurles.
Current prices of $1,850 a metre ton would be profitable for Irish style zinc deposits.
| Enquiries: |
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| Connemara Mining Company Plc |
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| John Teeling, Chairman | +353 (0)1 833 2833 |
| Jim Finn, Financial Director |
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| Smith & Williamson Corporate Finance |
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| Nick Reeve | +44 (0) 117 3762213 |
| Barrie Newton | +44 (0) 117 3762213 |
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| Optiva Securities Limited |
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| Jason Robertson | +44(0)203 137 1906 |
| Jeremy King | +44(0)203 137 1904 |
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| College Hill |
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| Nick Elwes | +44 (0) 207 457 2020 |
www.connemaramining.com