Minco PLC Regulatory News (MIO)

23 Jun 2006 07:30

Minco PLC23 June 2006 MINCO PLC23 JUNE 2006 Drilling intersects new sulphide mineralisation at Pallas Green Deposit LONDON: Thursday, 23 June 2006: Minco plc ("MIO") is pleased to announce thediscovery of new zones of sulphide mineralisation on its Pallas Green jointventure project in Ireland, enlarging the focus of exploration and suggestingthe potential for additional zinc and lead deposits, in addition to previouslydelineated mineralisation. During the winter and early spring months, drilling concentrated on evaluatingthe wider area around the Caherconlish and Tobermalug zinc prospects, along amajor northwest trending structural zone cutting across the Pallas GreenAlteration Trend. The programme was designed to define the outer limits of themineralising and alteration system rather than infill drilling around theprospects. Approximately 10 holes were drilled during this period for a totalof 3,200 metres. Significant zones of alteration and sulphide mineralisationhave been intersected in a number of the holes. Drill hole MN 636-32, located at Srahane, about 4km to the northwest of theCaherconlish zinc prospect and 4.5 km west-northwest of the Tobermalug zincprospect, is the most north-westerly hole drilled in the area to date. It hasintersected a zone of massive to semi-massive, high-grade, sulphidemineralisation between 266.6 and 271.8 metres located 10.5 metres above the baseof the Waulsortian reef limestone. Assay results for the 5.2 metre intersectionaveraged 21.8% zinc, 2.73% lead and 11.06 ppm (g/t) silver. Within thisinterval, from a down hole depth of 266.6m, a 3.7 metre intersection averaged28.84% zinc, 3.48% lead and 14.32 ppm silver. The drill hole lies on thenortheast side of a major northwest-trending fault believed to be an importantcontrolling structure at both the Srahane and Caherconlish prospects. Another drill hole, MN 636-28, located about 1.6km to the southeast of Srahaneand 4km northwest of the Tobermalug prospect in the area of Highpark intersectedthick 'black matrix breccias', identical to those hosting the Lisheen and Galmoyorebodies, with extensive pyrite mineralisation as both massive bands anddisseminations, with zinc-lead mineralisation occurring in two narrow zones ofmassive sulphides at down hole depths of 273.5 metres and 300.7 metres near thebase of the reef limestone. The upper intersection averages 5.21% zinc, 0.13%lead and 2.2 gm/t silver over 0.65 metres and the lower intersection averages2.53% zinc, 0.24% lead and 0.8gm/t silver over 0.95 metres. Commenting on the drill results, Terence McKillen, Director of Exploration &Business Development said: "The discovery of very significant zinc and leadvalues in hole 636-32 at Srahane and to a lesser extent in other drill holesindicates the very extensive nature of the zinc mineralisation at Pallas Green.These holes were not part of any follow-up drilling to the previously announcedareas of zinc-lead mineralisation at Caherconlish and Tobermalug. The new highgrade zinc, lead and silver values, together with the development of extensiveareas of alteration features such as the black matrix breccias which are alsoclosely associated with the Lisheen and Galmoy orebodies, are a very positiveaddition to our ongoing exploration activities at Pallas Green. This newdrilling adds significantly to the potential of the Pallas Green project as itopens up an area of at least 5km by 4km which could contain several mineralisedbodies". Detailed follow-up drilling on the Srahane and Highpark targets is continuingand planned follow-up drilling on the Caherconlish and Tobermalug prospects willcommence following the addition of two more diamond drill rigs. Results Drill Hole From To Width Description Zinc Lead Silver ppm (m) (m) (m) % %MN-636-32 266.60 266.96 0.36 Massive sulphide 5.20 0.08 4.2 266.96 267.26 0.30 Massive sulphide 35.28 9.70 16.3 267.26 267.56 0.30 Massive sulphide 25.68 1.62 12.1 267.56 268.10 0.54 Massive sulphide 42.20 4.46 20.8 268.10 268.70 0.60 Massive sulphide 38.52 5.33 14.4 268.70 269.20 0.50 Massive sulphide 32.20 4.64 15.9 269.20 269.70 0.50 Massive sulphide 29.80 2.55 12.6 269.70 270.05 0.35 Massive sulphide 6.88 0.18 14.1 270.05 270.30 0.25 Massive sulphide 29.08 0.86 15.6 270.30 270.80 0.50 Core loss 270.80 270.90 0.10 Semi-massive sulphide 8.00 0.69 4.4 270.90 271.40 0.50 Reef 0.91 0.01 0.3 271.40 271.50 0.10 Massive sulphide 39.20 12.00 30.3 271.50 271.80 0.30 Disseminated sulphide 4.91 0.07 3.0Avg. 266.60 271.80 5.20 21.80 2.73 11.06IntersectionAvg. 266.60 270.30 3.70 28.84 3.48 14.32Intersection MN-636-28 273.50 274.15 0.65 Massive sulphide 5.21 0.13 2.2 300.70 301.65 0.95 Semi-massive sulphide 2.53 0.24 0.8MN-636-26 307.60 309.10 1.50 Semi-massive sulphide 3.71 0.15 --MN-636-24 348.50 349.55 1.05 Banded sulphides 11.27 0.82 2.00 349.55 350.50 0.95 Black matrix breccia 2.09 0.08 0.40Avg. 348.50 350.50 2.00 6.91 0.47 1.24Intersection About Pallas Green The Pallas Green project comprises nine prospecting licences located innortheast County Limerick and southwest County Tipperary. Drilling is currentlytesting a portion of the Pallas Green Alteration Trend, a zone of structural andhydrothermal complexity, which extends over 20 kilometres in strike length. TheAlteration Trend is considered analogous to the Rathdowney Trend, associatedwith the Lisheen and Galmoy zinc deposits. The presence of pervasivealteration, with associated massive and disseminated pyrite together withsphalerite (zinc) and galena (lead) mineralisation has been demonstrated alongthe length of the Pallas Green Alteration Trend. Significant zincmineralisation has now been discovered at the eastern end of the Trend atCastlegarde and near the western end, adjacent to Srahane and Caherconlish. Theintervening section remains relatively unexplored except for a few widely spaceddrill holes, and is also considered highly prospective. Minco (23.6%) and joint venture partner Falconbridge (76.4%) have approved a2006 exploration budget of €1,060,000 (Minco's share €250,000). Mr. David Blaney, P.Geo. is responsible for overseeing the day to day operationsof the Pallas Green joint venture. He is a graduate in Geology from Queen'sUniversity, Belfast and has over 19 years experience. Mr. Terence McKillen, P.Geo. is the Qualified Person with respect to Minco'sparticipation in the Pallas Green joint venture. He is a graduate in Geologyfrom Trinity College Dublin and holds a Master of Science degree in EconomicGeology from the University of Leicester. He has over 38 years of experience.The information presented in this press release has been reviewed and verifiedby Mr. McKillen as the Qualified Person, for the purposes of the AIM GuidanceNote for Mining, Oil and Gas Companies March 2006. About Minco: Minco PLC is an AIM quoted precious and base metals exploration and developmentcompany with silver projects in Mexico and zinc exploration in Ireland. For further information, www.minco.ie or contact: Terence McKillen, Director of Exploration & Business +1 416 362 8243 / +1 416 362 6686DevelopmentSimon Beardsmore, Commercial Manager +44 (0)20 7397 8151Chris Rollason, Collins Stewart +44 (0)20 7523 8350Nick Bias, BuckBias +44 (0)7887 920 530 This information is provided by RNS The company news service from the London Stock Exchange