Last checked at 20 Nov 2012 07:00
20 November 2012
Exploration Update
Highlights:
·; Increased focus on the Oldcastle block of licences.
·; Ongoing evaluation of the Limerick zinc discovery.
·; Promising initial results from soil sampling on the Connemara gold licences in Wicklow/Wexford.
Oldcastle Zinc
Connemara Mining Company plc ("Connemara") (AIM:CON) has a joint venture with Teck Ireland Ltd. (''Teck'') whereby Teck will spend €1.35m to earn a 75 per cent interest in the five licence block in the Oldcastle area of Co Meath. Previous work by Connemara had identified significant traces of base metal mineralisation. The targets on the block are Navan mine type deposits, large, good grade deposits. Since taking operatorship Teck has reviewed extensive databases and is reprocessing an aeromagnetic survey as well as conducting ground geophysics to complement that which has been undertaken by Connemara.
During 2013 a 19.5km seismic survey will be undertaken over part of the block. This will be part of a large seismic survey over a number of licences held by Teck in the Midlands region. It is believed that seismic, used in conjunction with existing drill data, will help to better define the most prospective areas for drilling.
Limerick Zinc
The Connemara/Teck joint venture project on six licences in the Monaster/Stonepark area of Limerick continues to produce interesting results. Work this year has included a ground magnetics survey (around 15 sq. km) with the aim of delineating intrusive zones, which correlate with structurally controlled brecciation and mineralization. A high magnetic zone has been mapped on the junction between PLs 2637 and 2927. This area lies 5kms west of Stonepark North and to the north of the mineralisation at Rockfield (TC-2927-004- 0.59m @ 1.39% Zn), which has been identified as on a roughly N-S structural break from the airborne gravity data. Induced polarization (IP) surveys across the northern part of PL2927, have also delineated targets for more detailed follow-up.
Planned work for the remainder of this year includes drilling to the east of drillhole TC-450-002, which intersected base metal mineralization grading 6.95m @ 1.13% Zn. Sampling of basal reef target horizons and the re-opening of two to three drill holes for geophysical logging along the completed seismic profiles will also be carried out.
The Monaster area of the licence block remains highly prospective and target definition work will continue in 2013 to define new drill targets outside of the Stonepark discovery. Limited drilling will be carried out in the next year and, as a result, the timeline for advancing the project is expected to be impacted. The nature of the Stonepark mineralisation is such that a significant number of close spaced drill holes are required to get to resource/reserve that can form the basis of a Bankable Feasibility Study (BFS).
As a consequence, the board of Connemara has decided not to subscribe its 25 per cent towards current and 2013 budgets. Based on proposed expenditure this would result in a dilution of the Connemara interest in Limerick from 25 per cent to 23.24 per cent. Connemara can resume payments at the next budget.
Wicklow/Wexford Gold
Following the very strong results from the aeromagnetic survey undertaken in Spring 2012 Hendrick Resources Ltd (''Hendrick''), the operator of the joint venture, has undertaken an extensive soil sampling programme on the areas showing greatest potential. The data is being analysed and only preliminary results are available. They show strong gold indications particularly in two areas of the five licence block. Detailed results will be announced in the coming weeks. Hendrick is spending €1m on Connemara's licence block to earn a 75 per cent interest in the licences.
John Teeling, Chairman, commented, "Our joint venture partners are actively exploring on 16 of our licences, six in Limerick, five in Oldcastle, and five in Wicklow/Wexford. The work on Oldcastle and Wicklow/Wexford is not costing Connemara anything as it is part of an earn-in on the joint venture agreements. The change in focus by Teck away from Stonepark to the rest of the Limerick block led us to decide against contributing to the current exploration as the likelihood of production stretches further out. We have the option to restart at each budget.
"In 2013, Teck proposes a significant seismic survey programme in the Midlands region which will include almost 20kms of seismic lines on our Oldcastle block. Teck is conducting seismic survey to identify large structures which control basins with base metal potential.
"The gold potential on the Connemara licences is growing. Early indications from the latest work being undertaken by Hendrick shows significant promise. The decision by the board of Connemara not to subscribe toward 2012/2013 Limerick expenditure means that the Company has minimal cash outflow. We do not believe that the current market price and market capitalisation reflect the value in Connemara so we are reluctant to issue equity."
Connemara is a diversified exploration company with principal assets in base metal zinc/lead explorationlicencesas well as shear hosted gold exploration licences in Ireland. The company holds interests in 29 licences covering an area of approximately 1,073 sq km.
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 Professional Member of The Institute of Geologists of Ireland (IGI) and The Society of Exploration Geophysicists (SEG) and has over 30 years' experience in mineral exploration and site investigation fields.
Enquiries:
Connemara Mining Company Plc
John Teeling, Chairman +353 (0) 1 833 2833
Blythe Weigh Communications +44 (0)20 7138 3204
Tim Blythe +44 (0) 7816 924 626
Robert Kellner +44 (0) 7800 554 377
Westhouse Securities Limited
Richard Baty +44 (0) 20 7601 6100
Petre Norton
Optiva Securities Ltd
Jason Robertson +44 (0) 203 137 1906
Jeremy King +44 (0) 203 137 1904
Pembroke Communications
David O'Siochain +353 (0) 1 649 6486
www.connemaramining.com