Minco PLC Regulatory News (MIO)

24 Oct 2006 07:01

Minco PLC24 October 2006 Bilbao Project, Zacatecas, Mexico.London 24th October 2006 Minco plc, (MIO) the AIM listed precious and base metals exploration anddevelopment company today announces an update on its drilling and evaluationprogrammes at the Bilbao project in Zacatecas, Mexico. • Recent drilling extends the southern limit of the known sulphide mineralisation at Bilbao• Sulphide mineralisation remains open both at depth towards the south and laterally along strike• Updated resource evaluation programme for both oxide and sulphide mineralisation is underway• Conceptual design work is underway to establish an open pit for the exploitation of the oxide ores at Bilbao• To date, a total of 4,850 metres of diamond drilling has been completed Minco's Executive Chairman, Roger Turner, commented "The ongoing drillingprogramme at Bilbao provides confirmation for our confidence in the potential ofMinco becoming a producer in the short term via developing oxide ore processingat Bilbao. Our continuing success in intersecting deeper sulphidemineralisation provides us with the exciting longer term possibility of sulphideore production from Bilbao. To date, we have intersected sulphide mineralisationat depths from 115 metres to 260 metres over an area measuring approximately 300metres by 150 metres and over thicknesses up to 35 metres." The results of the Bilbao drilling campaign to date are summarised in thefollowing table: Summary table of Bilbao drilling and assay results as of 23rd October 2006 BH From (m) To Width No (m) (m) Zn % Pb% Cu% Ag g/tOxide B2 10.63 14.30 3.67 1.52 5.35 0.20 77Oxide B6A 77.50 80.75 3.25 0.87 0.35 0.55 102Oxide 151.30 153.90 2.60 1.22 1.59 0.03 149Sulphide * 224.00 225.50 1.50 4.21 0.73 0.10 89Oxide B6B 186.00 189.40 3.40 Waiting for AssaysOxide X3 24.00 31.00 7.00 2.50 2.17 0.14 12Oxide X10 4.00 33.00 29.00 1.54 4.17 0.19 16Oxide 75.00 97.00 22.00 2.35 0.63 0.63 14Oxide 103.00 113.00 10.00 3.32 1.66 0.20 60Sulphide * 116.00 141.00 25.00 3.49 2.75 0.26 141Oxide X11 17.00 42.00 25.00 1.25 2.38 0.10 47Oxide 69.00 73.00 4.00 4.13 0.50 0.29 71Sulphide * 153.00 175.00 22.00 6.85 1.39 0.22 100Oxide X13 31.00 42.00 11.00 2.50 4.62 0.16 33Oxide 132.50 151.80 19.30 8.36 1.52 0.10 23Sulphide * 166.95 201.95 35.00 5.57 4.92 0.33 80Oxide X14 41.70 59.00 17.30 Waiting for AssaysOxide X14 69.00 76.00 7.00 Waiting for AssaysSulphide X14 184.00 193.00 9.00 Waiting for AssaysOxide X15 57.00 60.00 3.00 2.03 3.55 0.05 53Oxide X15 96.00 106.00 10.00 Waiting for AssaysOxide X15 118.00 124.00 6.00 Waiting for AssaysSulphide X15 207.00 213.00 6.00 Waiting for AssaysSulphide X18 228.50 237.00 8.50 Waiting for AssaysSulphide X19 192.00 213.00 21.00 Waiting for AssaysSulphide X19 235.60 260.00 24.40 Waiting for Assays* Previously released Background The Bilbao site was mined for oxide ores prior to closure during the 1940s. In1994, Watts Griffis & McOuat prepared a resource estimate of 3.2 million tonnesat an average grade of 3.9% zinc equivalent using a 0% cut-off grade on behalfof the then owners, Minera Portree. This work was also the basis of outlineengineering and metallurgical studies by Kilborn Engineering and LakefieldResearch which were submitted in 1995 and 1997. In June 2006, Minco initiated a drilling programme to verify this historic oxideresource. The initial objective of the programme was to bring resources tocurrent reporting standards and provide data in order to evaluate the viabilityof re-establishing oxide ore production using acid leach technology. Thisprogramme continues and Minco expects to be able to report on resources early in2007. During the course of this programme Minco elected to test the potential forunderlying sulphide mineralisation beneath the oxides. This programme was ableto report initial intersections of previously undiscovered primary sulphidemineralisation in June 2006. Since that time, drilling has continued tointersect sulphide mineralisation up to 35 metres wide at depths ranging from115 metres to 260 metres. Currently drilling shows sulphide mineralisation extending over an area of some300 metres along strike and 200 metres down dip towards the south. Themineralisation remains open both along strike and down dip and Minco iscontinuing to drill to establish the lateral extent of the mineralisation. The exploration industry in general is experiencing delays in assaying, howeverthe table, which is also available on Minco's website (www.minco.ie), presentsthe drilling and assay results received from Bilbao to date. Maps and geological sections showing the location and results of this drillingand the location of the planned oxide ore-pit are available on Minco's website. Qualified Person The information in this press release has been reviewed and verified by Mr.Terence N McKillen, BA (MOD), MA, M.Sc., P.Geo, Director of Exploration andBusiness Development. Mr. McKillen is the Qualified Person for the purposes ofthe AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. MrMcKillen is a graduate in Geology from Trinity College Dublin and holds a Masterof Science degree in Mineral Exploration and Mining Geology from the Universityof Leicester. He has over 38 years of exploration experience. For further information contact: Roger Turner, Executive Chairman +44 (0) 20 7397 8155Terence McKillen, Director of Exploration & Business +1 416 362 8243 / +1 416 362 6686DevelopmentSimon Beardsmore, Commercial Manager +44 (0) 20 7397 8159Chris Rollason, Collins Stewart +44 (0) 20 7523 8350Tom McCormack, ConneXions +353 (0) 1 230 3015Alex Buck, BuckBias +44 (0) 7932 740 452 This information is provided by RNS The company news service from the London Stock Exchange