Minco PLC Regulatory News (MIO)

MINCO PLC -THIRD QUARTER REPORT 2014

Toronto, 2 December 2014 - Minco Plc (AIM-"MIO") announces its financial results and report on operations for the three and nine months ended September 30, 2014.

During the period Minco completed a preliminary economic assessment of its 100% owned Woodstock manganese project in New Brunswick, Canada, while continuing its zinc-lead exploration drilling at its Pennines project in Northern England and on its Buchans zinc-lead project in Newfoundland, both with encouraging results.

Minco recorded a gain of $135,000 for the three months ended September 30, 2014 compared to a loss of $1,117,000 for the same period ended September 30, 2013. 

BUCHANS BASE METAL PROJECTS, NEWFOUNDLAND

Minco's 2014 four hole drilling program recorded multiple intersections of massive sulphide mineralization with grades as high as 26.05% combined zinc, copper and lead over 1.45 metres. The 2014 drilling programme was undertaken primarily to assess the potential for discovery of new high-grade massive sulphides, similar to the historic Asarco deposits, south and west of the Lundberg deposit, and the results have confirmed that potential which remains open both down-dip to the west and at depth.

High grade massive sulphide horizon intersected at Buchans

Hole 14-3487 intersected the Lucky Strike horizon at a depth of 53 metres, where it intersected 2.70 metres assaying 6.07% Zn, 0.53% Cu, 3.27% Pb, 103.5 g/t Ag and 1.65 g/t Au.

Hole 14-3488 intersected 4.80 metres of 3.30% Zn, 0.22% Cu, 1.43% Pb and 118.7 g/t Ag at a depth of 65 metres, including an intercept of 0.80 metres of 16.80% Zn, 0.75% Cu, 7.40% Pb, 518 g/t Ag and 3.54 g/t Au (24.95% combined zinc, copper and lead). 

Hole 14-3488 also intersected 7.80 meters averaging 3.43% Zn, 1.85% Cu, 1.30% Pb, 22.9 g/t Ag, including 1.45 m of massive sulphides assaying 17.00% Zn, 2.51% Cu, 6.54% Pb, 92.5 g/t Ag (26.05% combined zinc, copper and lead) at the top of the Engine House horizon, between 105 and 113 metres depth.

Hole 14-3491 intersected 3.30 metres averaging 1.23% Zn, 3.29% Cu, 1.00% Pb and 12.59 g/t Ag, including 0.45 m assaying 4.75% Zn, 12.50% Cu, 4.50% Pb and 45.10 g/t Ag (21.75% combined zinc, copper and lead), also in the Engine House horizon. 

The drilling results confirmed extensions to these massive sulphide horizons, with 2 of the 4 holes (14-3487 & 14-3488) intersecting high-grade mineralization at the relatively shallow Lucky Strike horizon and 3 of the 4 holes (14-3488, 14-3489 & 14-3491) successfully intersecting the deeper Engine House horizon, situated 40 to 50 metres below the Lucky Strike horizon. 

These three holes now confirm Minco's interpretation that the Engine House horizon continues down dip to the west of Indicated resources defined within the current Lundberg Resource estimate (Technical Report dated April 26, 2013). These Engine House intercepts are considered particularly encouraging as they confirm potential exists for high-grade massive sulphides at this deeper and less well explored horizon in close proximity to the Lundberg deposit. The Engine House horizon was previously considered to be almost entirely composed of lower grade stockwork sulphide mineralization and has been largely ignored by historic drilling that focused almost exclusively on the shallower Lucky Strike horizon. 

In addition, Hole 14-3489 was continued to greater depths below the Engine House to test a deeper horizon referred to as the Ore Clast horizon and returned a 1 metre intercept assaying 2.31 % Zn, 0.08% Cu, 1.49% Pb, 24.6 g/t Ag and 0.47 g/t Au within what may be a faulted repeat of the Lucky Strike horizon. Minco is encouraged by these deeper intercepts as they suggest potential exists for structurally repeated ore bodies at depths below previous mining. 

Re-logging of archived drill cores by Minco during its summer 2014 exploration program suggests high-grade massive sulphide mineralization at the Lucky Strike horizon may occur in this area at shallow depths beneath a shallow, south-dipping fault structure. This work also indicated that this mineralization may be more continuous than previously thought; as historic, small-core diameter drilling intersected high-grade massive sulphides with poor core recoveries. In addition, Minco's re-logging also confirmed that stockwork sulphide mineralization associated with the Engine House horizon remained open down dip to the west.

Future exploration at Buchans

As a result of these new massive sulphide intercepts at the Engine House horizon, Minco has assigned a higher priority to the Engine House horizon for discovery of high-grade massive sulphides beneath depths previously tested by historic drilling.

Given the positive results achieved by the 2014 drilling south of Lucky Strike, Minco intends to carry out additional drilling in the area in 2015 to further assess the Lucky Strike and Engine House deposits as well as explore the deeper Ore Clast horizon. In addition, Minco will continue its reclogging efforts to identify additional priority targets at its other undeveloped base metal prospects in Buchans.

WOODSTOCK MANGANESE PROJECT

In July, 2014, Minco announced the results of the positive Preliminary Economic Assessment (PEA) of its wholly owned Woodstock Project for the production of electrolytic manganese metal ("EMM").

The PEA indicates a pre-tax Net Present Value ("NPV") of CDN$846 million (post-tax NPV of CDN$461 million), at a 8% discount rate and a pre-tax Internal Rate of Return ("IRR") of 17.97% (Post-tax IRR of 14.40%), based on a 3,000 tonne per day ("tpd") open pit mining, hydrometallurgical and electrowinning operation, with a pre-production capital expenditure of CDN$864 million and average annual payable production of approximately 80,000 tonnes of EMM.

The PEA's base case indicates a long project life of 40 years with operating costs anticipated to be the lowest in the industry averaging US$0.64/lb of electrolytic manganese metal ("EMM") produced over the first 20 years and US$0.68/lb EMM over the life of project.

The results of the PEA show that the Plymouth deposit on the Woodstock Project has good potential to become an economically attractive future mining and processing operation, and that a prefeasibility level study should be completed to further define and optimize this potential.

Minco is very pleased with the excellent preliminary economic assessment results for the Woodstock manganese project which clearly demonstrates the potential value of the project to Minco and which indicates that Woodstock holds great promise to emerge as potentially one of the lowest cost EMM producers in the world.

EXPLORATION CONTINUES AT NORTHERN PENNINES, ENGLAND

Minco's ongoing exploration drilling is currently centered on a 3.5 by 2.5 kilometre area in the vicinity of the village of Nenthead, the most prolific area of past production within the Pennines orefield which covers a total area of approximately 350 square miles. 

To the end of September, a total of 7,076 meters has been drilled in 28 holes. Twenty two holes have been sited to define the localizing structures and to explore potential within the Great Limestone geological succession and six holes with a total of 3219 meters have tested the basal succession. Drilling was suspended from September to November 2014 for the grouse shooting season.

During 2014, Minco drilled a high grade zinc-lead intersection on the Gudhamgill target grading 19.55% Zn and 1.93% Pb over 0.40 metres at a depth of 39.60 metres, together with 2.70 metres of zinc mineralisation grading 5.04% Zn at a depth of 91.75 metres, in hole CA-017. A second high-grade zinc intersection grading 10.34% Zn and 0.97% Pb over 1.00 metres was cut in hole CA-016 associated with narrow breccia hosted 'vein' associated with a small hanging-wall fault zone.

Drilling results from holes CA-013, and CA-015 through CA-019 demonstrate that the Great Limestone horizon in the vicinity of the Gudhamgill structure has the potential to host lenses of zinc-dominated disseminated stratiform mineralization at good zinc grades. Stratiform lenses of similar dimensions have been intersected associated with the parallel Scaleburn Fault, 900 metres to the southeast.

On the Scaleburn target a coherent lens of stratiform mineralisation has been outlined by six holes (CA006, CA008, CA009, CA010, CA011 and CA020) with a strike length of 200 metres and extending up to 50 metres from the Scaleburn Fault within the Great Limestone. Widths of mineralisation range between 13.5 metres and 2.6 metres with a weighted average thickness of 10.5 metres. 

Hole CA020, completed in September, intersected a 13.65 metre interval on the Scaleburn target averaging 5.53 percent zinc, 4.81 percent lead and 18.7 g/t silver over 13.65 metres within the Great Limestone between 141.50 and 155.15 metres debth.

The picture is beginning to develop of flat lying, stratiform lenses of disseminated, replacement mineralisation locally extending for over 20 to 60 metres laterally from historic mine workings. The average thickness to date of this mineralization is seven metres with a combined lead plus zinc grade of about nine-percent for the holes for which assay results are available.

Previous historic mining outlined a total of 10.5 kilometres of mineralised vein structure, all of which is considered by Minco to have potential for mineralisation similar to that outlined by initial drilling. Six kilometres of structure with associated 'flats', along the Scaleburn Vein and other veins remain unexplored, suggesting significant potential for mineralisation within the Great Limestone.

The primary exploration target in the North Pennines remains large, stratiform lenses of replacement zinc-lead mineralisation within the thick, unexplored deepest limestone geological succession about 370 metres below the Great Limestone.

The demonstration of significant stratiform mineralisation within the Great Limestone counters the long held belief that the mineralisation in the northern Pennines is dominantly of 'vein type' and significantly improves the potential for major lenses of stratiform within the more massive and thicker, basal limestone succession and provides encouragement to continue exploration at the base of the Carboniferous. Minco believes that, due to structural complexity, of the six deep holes completed to the basal succession, only two have intersected the target; CA001 adjacent to the Rampgill Vein and CA020 adjacent to the Scaleburn Vein.

Minco considers the results from its first 28-drillholes encouraging given the fact that these are the first exploration drill holes to be drilled within this 10 square-kilometre area. These results to date confirm the potential of the Northern Pennine Orefield for the discovery of new mineralization both extending laterally around and at depth below historic workings and with the potential to host an economic zinc-lead deposit. 

Drilling was suspended at the end of September for the duration of the grouse shooting season and resumed in mid-November, with two more holes planned to be drilled prior to year end.

FINANCIAL RESULTS - INCOME IN THE QUARTER

For the three month period ended September 30, 2014, Minco recorded a gain of $135,000 compared to a loss of $1,117,000 for the same period ended September 30, 2013. A foreign exchange gain of $503,000 was recorded during the period compared to a foreign exchange loss of $417,000 during the same period in 2013.

For the nine month period ended September 30, 2014, Minco incurred a consolidated net loss of $352,000 compared to a loss of US$1,873,000 during the same period ended September 30, 2013. A foreign exchange gain of $568,000 was recorded during the period compared to a foreign exchange loss of $196,000 during the same period in 2013.

During the nine month period ended September 30, 2014, Minco invested $2,445,000 in exploration and development expenditures. At September 30, 2014, Minco held mineral properties with a book value of $13,855,000.

At September 30, 2014, Minco held $6,887,000 in cash and cash equivalents.

At September 30, 2014, the Company had a working capital surplus of $6,627,000, compared to a working capital surplus of $9,739,000 at December 31, 2013, and is adequately financed to meet its planned programs and business objectives.

ABOUT MINCO PLC.

Minco Plc, registered in the Republic of Ireland and listed on the AIM Market of the London Stock Exchange ("MIO"), is an exploration and development company, currently engaged in zinc-lead exploration in Canada, the United Kingdom and Ireland and in evaluating a manganese project in New Brunswick, Canada and with investments in zinc‐silver projects in Mexico through holding 30 million shares (approximately 26%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-"XAG").

Minco also holds a 2% NSR royalty on the Curraghinalt gold property in Northern Ireland which is being explored by Dalradian Resources Inc. (TSX-"DNA").

For further information of Minco refer to Minco's website at www.mincoplc.com

For further information, www.mincoplc.com or contact:

John Kearney: Chairman and Chief Executive +1 416 362 6686

Danesh Varma: CFO & Company Secretary +44 (0) 8452 606 034

Peter McParland: Director - Ireland +353 (0)46 907-3709

Warren MacLeod: Director, - President Buchans +1 709-725-0555

John Frain/Alan Connolly: (NOMAD) Davy +353 (0)1 6796363

Saif Janjua: (Corporate Advisor| Broker)

Beaufort International, London +44(0)20 7382 8300

Copies of this announcement together with copies of the unaudited interim financial statements and related management's discussion and analysis for the nine month period ended September 30, 2014 will be posted on the Company's website at www.mincoplc.com and will be available for inspection at the Company's registered office at 27 Hatch Street Lower, Dublin 2, Ireland