18 Jun 2015 09:16
MINCO PLC
MINCO INTERSECTS WIDESPREAD MINERALIZATION
IN 'ORE CLAST' HORIZON AT BUCHANS, NEWFOUNDLAND
●EXTENDS LUCKY STRIKE MINERALISATION
Toronto, 18 June 2015 - Minco plc (AIM - "MIO") (the "Company"), is pleased to announce results from its recently completed twelve hole, 2,200 metre, exploration drilling programme in Buchans, central Newfoundland, Canada.
The 2015 drilling programme tested several mineralized stratigraphic horizons to depths of less than 300 metres, with all holes located immediately south of Minco's undeveloped Lundberg deposit and approximately 250 m south of the former lucky Strike mine. The drilling programme was undertaken primarily to assess the potential for discovery of new high-grade massive sulphide.
Drilling intersected widespread ore clast mineralization within a deeper stratigraphic horizon known as the 'Ore Clast' horizon, below the Lucky Strike mine horizon and lesser explored Engine House horizon.
All eight holes designed to test the Ore Clast horizon intersected mineralized felsic volcanic breccia ranging from 1 to 23 metres in thickness, and hosting massive sulphides to sulphide-rich clasts measuring up to 15 centimetres in diameter. Intercepts include 0.5 metres averaging 13.32% combined base metals (I.e., Cu%+Pb%+Zn%) as 1.80% Cu, 5.20% Pb, 6.32% Zn, 53.3 g/t Ag, and 0.18 g/t Au in hole H-15-3493, as well as 1.0 metre averaging 6.16% combined base metals as 0.35% Cu, 1.72% Pb, 4.10% Zn, 63.4 g/t Ag, and 0.27 g/t Au in hole H-15-3497.
"Given the potentially high-grade character and widespread nature of Ore Clast horizon mineralization, Minco believes that horizon may hold significant potential for discovery of new orebodies composed of breccia or "transported ores" similar to those historically mined at Buchans" said Warren McLeod, President of Minco's wholly owned subsidiary Buchans Minerals Corporation.
Transported ores accounted for more than 52% of historic production at Buchans, with head grades reported to have averaged over 20% combined base metals as 1.04% Cu, 7.12% Pb, 12.20% Zn, 124.9 g/t Ag and 1.04 g/t Au.
Other notable results from the 2015 drill programme include new intersections of higher grade mineralization extending the Lucky Strike deposit to the south, where Hole H-15-3496 intersected 5.05 m averaging 5.98% combined base metals as 0.20% Cu, 2.15% Pb, 3.63% Zn, 8.9 g/t Ag, and 0.05 g/t Au, including 2.70 m averaging 7.41% combined base metals as 0.23% Cu, 2.74% Pb, 4.44% Zn, 10.1 g/t Ag, 0.06 g/t Au.
Further south, additional holes testing the Lucky Strike horizon yielded mineralized intercepts, as hole H-15-3495 intersected 0.94 m assaying 12.04% combined base metals as 0.44% Cu, 3.80% Pb, 7.80% Zn, 88.4 g/t Ag, and 1.62 g/t Au; while hole H-15-3497 intersected 0.5 m averaging 8.23% combined base metals as 0.20% Cu, 3.60% Pb, 4.43% Zn, 32.2 g/t Ag, and 0.29 g/t Au.
Two drill holes, H-15-3495 and 15-3496, were drilled to further test high-grade massive sulphide mineralization west and northwest of high-grade massive sulphides previously intersected in hole H-14-3488 (high grade assays further disclosed in Minco Press Release dated October 28, 2014). Both holes intersected weak mineralization at the Engine House horizon, suggesting the zone may thin and decrease in grade to the west.
In light of the positive results from its 2015 drilling, Minco has further expanded its programme of relogging historic drill holes to determine potential for new high-grade discoveries below depths of previous mining near the former Lucky Strike mine.
Assays from the 2015 drilling programme are summarized in the table below.
Hole | Horizon | from (m) | to (m) | width (m) | Cu(%) | Pb(%) | Zn(%) | Ag(g/t) | Au(g/t) | Cu+Pb+Zn (%) | ||
H-15-3492 | LS | 175.00 | 176.00 | 1.00 | 0.34 | 0.37 | 0.77 | 6.20 | 0.11 | 1.48 | ||
OCH | 220.00 | 221.00 | 1.00 | 0.12 | 0.83 | 1.26 | 5.10 | 0.05 | 2.21 | |||
H-15-3493 | LS | 115.35 | 116.20 | 0.85 | 2.42 | 0.03 | 0.05 | 6.46 | 0.03 | 2.50 | ||
OCH | 225.00 | 227.10 | 2.10 | 0.94 | 1.85 | 2.63 | 19.50 | 0.09 | 5.42 | |||
incl. | 226.60 | 227.10 | 0.50 | 1.80 | 5.20 | 6.32 | 53.30 | 0.18 | 13.32 | |||
H-15-3494 | LS | 100.00 | 101.00 | 1.00 | 0.08 | 0.67 | 0.24 | 6.90 | 0.06 | 0.99 | ||
OCH | 204.40 | 213.50 | 9.10 | 0.41 | 0.33 | 0.41 | 6.96 | 0.07 | 1.15 | |||
H-15-3495 | LS | 129.06 | 131.00 | 1.94 | 0.25 | 2.23 | 4.28 | 48.40 | 0.83 | 6.76 | ||
incl. | 130.06 | 131.00 | 0.94 | 0.44 | 3.80 | 7.80 | 88.40 | 1.62 | 12.04 | |||
OCH | 220.40 | 221.60 | 1.20 | 0.15 | 0.25 | 0.45 | 5.40 | 0.05 | 0.85 | |||
H-15-3496 | LS | 76.25 | 81.30 | 5.05 | 0.20 | 2.15 | 3.63 | 8.86 | 0.05 | 5.98 | ||
incl. | 78.60 | 81.30 | 2.70 | 0.23 | 2.74 | 4.44 | 10.10 | 0.06 | 7.41 | |||
EH | 100.45 | 102.00 | 1.55 | 1.25 | 0.44 | 0.42 | 6.56 | 0.01 | 2.11 | |||
H-15-3497 | LS | 120.20 | 120.70 | 0.50 | 0.20 | 3.60 | 4.43 | 32.20 | 0.29 | 8.23 | ||
OCH | 170.50 | 171.50 | 1.00 | 0.32 | 1.55 | 3.83 | 53.15 | 0.20 | 5.70 | |||
OCH | 174.00 | 174.30 | 0.30 | 0.37 | 0.72 | 4.76 | 20.10 | 0.16 | 5.85 | |||
H-15-3498 | LS | 108.30 | 108.90 | 0.60 | 1.14 | 0.88 | 1.96 | 126.80 | 0.52 | 3.98 | ||
incl. | 108.30 | 108.55 | 0.25 | 2.60 | 1.42 | 3.39 | 286.40 | 1.02 | 7.41 | |||
EH? | 131.40 | 132.40 | 1.00 | 1.18 | 0.11 | 0.18 | 3.60 | 0.04 | 1.47 | |||
OCH | 187.10 | 201.40 | 14.30 | 0.09 | 0.33 | 0.57 | 8.68 | 0.10 | 0.99 | |||
H-15-3499 | LS | 95.45 | 95.75 | 0.30 | 0.28 | 2.90 | 4.33 | 67.90 | 1.02 | 7.51 | ||
OCH | 228.40 | 229.20 | 0.80 | 0.20 | 1.11 | 1.33 | 14.00 | 0.14 | 2.64 | |||
OCH | 240.40 | 242.70 | 2.30 | 0.16 | 0.44 | 0.77 | 5.90 | 0.04 | 1.37 | |||
incl. | 242.35 | 242.70 | 0.35 | 0.16 | 1.70 | 2.70 | 9.60 | 0.09 | 4.56 | |||
H-12-3449Ext | no additional mineralization | |||||||||||
H-14-3487Ext | EH | 128.70 | 130.10 | 1.40 | 1.03 | 0.23 | 0.39 | 9.10 | 0.04 | 1.65 | ||
OCH | 132.90 | 135.60 | 2.70 | 0.20 | 0.90 | 1.31 | 4.36 | 0.08 | 2.41 | |||
incl. | 134.90 | 135.60 | 0.70 | 0.37 | 2.90 | 3.94 | 8.10 | 0.14 | 7.21 | |||
H-12-3450Ext | OCH | 220.65 | 221.00 | 0.35 | 0.11 | 1.16 | 1.52 | 4.20 | 0.03 | 2.79 | ||
OCH | 231.3 | 235.90 | 4.60 | 0.16 | 0.52 | 0.83 | 5.09 | 0.12 | 1.50 | |||
H-12-3457Ext | OCH | 264.00 | 275.00 | 11.00 | 0.06 | 0.36 | 0.63 | 1.19 | 0.03 | 1.05 | ||
OCH | 285.00 | 288.00 | 3.00 | 0.02 | 0.45 | 0.73 | 6.93 | 0.06 | 1.20 | |||
* Reported widths are core length. True widths estimated to be approximately 90% of reported widths. All holes drilled vertically from surface, except hole 15-3495 drilled at an angle of -51° towards azimuth 045°, and 15-3496 drilled at an angle of -65° towards azimuth 045° ( LS-Lucky Strike, EH- Engine House, OCH- Ore Clast horizon).
Minco has applied for grant funding from the Government of Newfoundland and Labrador's 2015 Junior Company Exploration Assistance ("JEA") programme, from which the Company may receive grants of up to $100,000 to support the current programme. In May 2015, Minco received a grant of CDN$45,000 from the Government of Newfoundland and Labrador relating to its 2014 exploration program.
BUCHANS PROJECT BACKGROUND
The Buchans project represents one of several of Minco's advanced volcanogenic massive sulphide ("VMS") base metal projects within central Newfoundland. Minco's interests in deposits in the region include 100% interest in the Lundberg, Daniels Pond, and Bobbys Pond deposits, each containing National Instrument 43-101 compliant resources, as well as 49% interest in the Tulks Hill deposit.
The 2015 drilling programme at Lucky Strike is located within Minco's 100%-owned Buchans project, comprised of 5,870 ha covering most of the past producing Buchans mines where Asarco mined a total of 16.2 million tonnes averaging 14.51% Zn, 1.33% Cu, 7.56% Pb, 126 g/t Ag & 1.37 g/t Au between 1928 and 1984 from insitu massive sulphide and transported breccia sulphide ores. These operations established Buchans as one of Canada's richest, historic base metal mining camps. The Lucky Strike South area is located immediately south of the former Lucky Strike mine, where Asarco mined 5.6 million tonnes averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au, before closing the Buchans mine in 1984.
Minco's Lundberg deposit is the most advanced undeveloped deposit in the district and consists of a large lower grade resource being evaluated for open pit mine development. The deposit hosts Indicated resources of 23.4 million tonnes grading 1.41% Zn, 0.60% Pb, 0.35% Cu, 5.31 g/t Ag and 0.07 g/t Au, and Inferred resources of 4.3 million tonnes averaging 1.29% Zn, 0.54% Pb, 0.27% Cu, 4.47 g/t Ag and 0.08 g/t Au (see Minco press release dated March 4, 2013 for more complete disclosure).
Minco continues to work towards advancing the Lundberg project to pre-feasibility, while also continuing to explore for new high-value discoveries within its properties in the Buchans area of central Newfoundland.
QUALIFIED PERSON
Paul Moore, M.Sc., P.Geo., (NL), Vice President of Exploration of Buchans Minerals, a Qualified Person within the meaning of National Instrument 43-101, is supervising the 2015 drill programme and has reviewed the technical contents of this release.
Historic production tonnages and grades grade from The Buchans Orebodies: Fifty Years of Geology and Mining. (Edited by E.A. Swanson, D.F. Strong, J.G. Thurlow), Geological Association of Canada Special paper 22, 1981).
SAMPLING PROCEDURE
Drill cores were logged and sampled by Minco's geological and technical staff with cores descriptively logged on site, aligned, marked for sampling and split longitudinally using a diamond saw. Samples consist of halved NQ-size core (47.6 mm diameter core) with the remaining half of the core preserved in core boxes for future reference. As part of Minco's' QAQC protocols, samples were bagged, tagged, sealed and delivered directly to Eastern Analytical Limited's laboratory in Springdale, Newfoundland, by Minco personnel. Samples are nominally one metre in length, except where specific geologic parameters required a different interval be sampled. Sample preparation was completed by Eastern Analytical with each sample crushed to approximately -10 mesh and split using a riffle splitter to approximately 300 g. Each sample split was pulverized using a ring mill to approximately 98% -150 mesh. In addition to regular samples, blank samples (one per 20 samples) and certified standards (one per 20 samples) were submitted for sample preparation and assay.
All assays were completed by Eastern Analytical of Springdale Newfoundland by the inductively coupled plasma method (ICP-30) for base metals (Cu, Pb, Zn) and to Ore Grade Assay Cu, Pb and Zn if upper detection limits by ICP were exceeded for either element (upper detection limits; Cu 10,000 ppm, Pb 2,200 ppm, Zn 2,200 ppm). ICP analyses were completed using a 0.500 g sample digested in nitric and hydrochloric acid and analyzed by ICPOES (Inductively Coupled Plasma Optical Emission Spectroscopy). Base metal Ore Grade Assays (Cu, Pb, Zn) were completed using a 0.200 g sample digested in nitric and hydrochloric acid and analyzed by the atomic absorption (AA) method. Silver assays were completed using a 1,000 mg sample digested in hydrochloric and nitric acid and analyzed by AA (Atomic Absorption spectroscopy). Gold assays were completed by standard ½ assay ton fire assay using the AA method.
ABOUT MINCO PLC
Minco Plc, incorporated 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 is also evaluating its Woodstock manganese project in New Brunswick, Canada.
Minco also has interests in zinc-silver projects in Mexico through its holding of 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, currently being explored by Dalradian Resources Inc. (TSX-"DNA").
For further information, including a map of the "Lucky Strike Target Area" showing drill hole locations, please refer to Minco's website at www.mincoplc.com or contact:
Warren MacLeod: Director, President Buchans Minerals +1 709 725 0555
Danesh Varma: CFO & Company Secretary +44 (0) 8452 606 034
Peter McParland: Director - Ireland +353 (0) 46 907 3709
John Frain/Alan Connolly: (NOMAD) Davy +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities) +44 (0) 20 7382 8415