Minco PLC Regulatory News (MIO)

14 Jan 2008 07:01

Minco PLC14 January 2008 Release of Additional Drill Results Preliminary Estimate of Potential Minco plc (MIO), the London AIM quoted precious and base metals exploration anddevelopment company is pleased to report additional results from ongoingdrilling on the Pallas Green project, Co. Limerick - a joint venture withXstrata Zinc. During 2007, the partners expended €1.7 million in drilling 16,686 metres, ofwhich 14,483 metres were completed at the Tobermalug Prospect near Caherconlishusing 5 drill rigs. Of the 39 holes started in 2007, 5% were still in progressat year end, 68% intersected base metal mineralization or the favourable blackmatrix breccia host lithology while 27% were barren holes or did not, for avariety of reasons, test the planned target. At Tobermalug, the immediate focus is to continue to trace the mineralization tothe south, where it remains open. Typically, in Irish zinc-lead deposits, thehighest grades and width are associated with the southern margins of thedeposit, spatially related to major, bounding fault structures. Such faultstructures are believed, on geological grounds, to lie south of the area testedto date. Current drilling with 5 rigs is continuing with four of the holestesting wider step outs to the south of the Tobermalug Prospect. One of theseholes, 750 metres to the south, is currently drilling well-developed blackmatrix breccias with associated semi-massive to massive pyrite above the targethorizon. New Drill Data Minco is pleased to release the following results from recently completed holesat Tobermalug: Hole # Inclination Width (m) Zinc % Lead %636-66* Vertical 1.85 4.43 1.85636-68* 68degrees 4.90 4.02 0.66636-70* 58degrees 4.30 3.38 0.45includes 1.80 6.51 0.77and 7.8 4.26 0.75includes 2.00 6.74 2.02636-71* 57degrees 1.10 8.37 2.39636-72* 71degrees 3.70 5.24 0.67and 4.50 2.15 0.472529-20* Vertical 5.30 4.35 1.112529-21* Vertical 1.20 5.19 3.76and 2.25 7.05 1.032529-22* Vertical 2.15 4.94 1.80includes 1.00 9.22 3.74 * Newly Released Drill Results Preliminary Estimate of Potential The drill density within the Tobermalug prospect is currently insufficient toallow completion of a formal resource estimate. The company is of the opinion,however, that the sixteen, 100m to 300m spaced intersections within the 'corezone' can be considered reasonably representative of the widths and grades ofmineralization within the approximately 300,000 square metre area of the 1,700metre long mineralized zone drilled to date, and that geological continuitybetween intersections probably exists, although cannot be demonstrated withoutcompletion of infill drilling. On this basis, the part of the prospect outlinedto date has potential to host 6.5 million tonnes averaging 8.6 percent zinc and1.23 percent lead. On a similar basis, the partially explored prospects atCaherconlish South and Srahane West have potential to jointly host an additional1.0 to 1.4 million tonnes averaging 11.0 to 11.5 percent zinc and 1.4 to 1.6percent lead. This preliminary estimate of potential is not intended to be, andmust not be interpreted as a mineral resource as defined under JORC. It isconsidered too geologically speculative to apply economic considerations.Readers are cautioned that such a preliminary estimate does not havedemonstrated economic viability. It does, however, provide an estimate ofmagnitude for the volume, or tonnage potential, of the mineralized zone ascurrently defined Exploration Director's Comment Commenting on the announcement, Terence McKillen, Director of Exploration andBusiness Development said: "In recent weeks, results of ongoing drilling atPallas Green have added to the detail of the northern and central parts of theTobermalug Prospect and demonstrate the size and extent of the overallmineralizing envelope. We are hopeful that on-going drilling to the south willencounter the expected development of greater thicknesses and higher grades ofmineralization commonly associated with the main controlling structure(s) ofthese types of zinc deposits. We remain extremely optimistic for the potentialof not only the Tobermalug Prospect itself, but for the Pallas Green property asa whole, which has the potential to contain more than one such deposit." Qualified Person The above information has been reviewed and verified by Mr. Roger Turner,Executive Chairman of Minco, for the purposes of the Guidance Note for Mining,Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr.Turner, with 40 years of mining engineering, management and consultingexperience, graduated as a mining engineer from the Camborne School of Mines,has a M.Sc. degree in Economic Geology from Leicester University and is a memberin good standing with the Institute of Materials, Minerals and Mining and a UKChartered Engineer. 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: Roger Turner: Executive Chairman & CEO +44 (0)20 7397 8155Terence McKillen: Director of Exploration & Business Development +1 416 362 6686Danesh Varma, CFO & Company Secretary +44 (0)20 7397 8154John Frain / Fergal Meegan: (NOMAD) Davy +353 (0)1 679 6363Tom McCormack (Ireland PR) ConneXions +353 (0)1 230 3015 This information is provided by RNS The company news service from the London Stock Exchange