Minco PLC Regulatory News (MIO)

16 Feb 2006 07:01

Minco PLC16 February 2006 Pallas Green Zinc Project, Ireland - Exploration Update : Additional positive drill results LONDON: 16 February 2006: AIM quoted precious and base metals explorer anddeveloper Minco Plc ("MIO") is pleased to announce further positive drilling atits Pallas Green Project, a joint venture between Minco Plc (23.6%) andFalconbridge Limited (76.4%). Drill hole 636-24, collared approximately 800 metres south of the Tobermalugmineralized zone, has intersected zinc and lead mineralization associated withblack matrix breccias in the basal Waulsortian Reef Limestones. A zone ofsignificant zinc mineralization with grades of 11.27% zinc and 0.82% lead wasintersected over a width of 1.05 metres from 348.50 to 349.55 metres depth. Afurther zone of weakly disseminated mineralization occurs over 13.4 metres from431.9 metres to 445.3 metres depth with zinc values ranging between 0.22% and1.58%. Additional sampling is being completed on the drill core. No holes haveyet been drilled between this location (636-24) and the Tobermalug prospect tothe north. Commenting on the drill results of hole 636-24, Terence McKillen, Director ofExploration & Business Development said: "The discovery of zinc and lead valuesin hole 636-24, which was not part of the immediate follow-up drilling programfrom the previously announced areas of zinc-lead mineralization, is verysignificant in that it opens up a large area of ground which could bepotentially mineralized between the Tobermalug prospect and the BallyneetyFault, a distance of about 1,100 metres." Drilling has now outlined a northeast-oriented area, 5km long by up to 1.5kmwide, containing widespread pyrite (massive to semi-massive to disseminated)with associated zinc-lead values, which includes the Caherconlish and Tobermalugprospect areas where two discrete zones of high-grade zinc and leadmineralization were discovered during 2005. It is believed that this area isbounded to the south by a major east-northeast trending fault, the BallyneetyFault, offset by a series of northwest trending fault structures. Thisstructural setting is considered analogous to that associated with many of themajor Irish zinc deposits including Lisheen, Galmoy and Navan. Plans for 2006 Program Minco and joint venture partner Falconbridge have approved a 2006 explorationbudget of €1,060,000, of which Minco's share will be €250,000. Two drills will continue to evaluate the wider area around Caherconlish andTobermalug where ongoing drilling is focussed on defining the outer limits ofthe mineralizing system in areas with good road access. Detailed follow up tothe Caherconlish and Tobermalug zinc prospects cannot be completed during thewinter months due to the low-lying nature of the surrounding farmland whichprecludes heavy equipment access. Within the next few months it is expected,the JV drill program will again be expanded to three or four drilling rigs tofollow up the two zones of high-grade mineralization. In addition to ongoing drilling, a helicopter-borne geophysical survey using thelatest technology Geotech Versatile Time-Domain Electromagnetic (VTEM) andmagnetic geophysical systems will be flown over a portion of the Pallas Greenproperty in a preliminary 595 line-kilometre survey scheduled to commence inMarch. About Pallas Green The Pallas Green project comprises nine prospecting licences located innortheast Co. Limerick and south Co. Tipperary. Drilling is currently testing aportion of the Pallas Green Alteration Trend, a zone of structural andhydrothermal complexity, which extends for over 20 kilometres between LimerickCity and Castlegarde. The Alteration Trend is considered analogous to theRathdowney Trend with which both the Lisheen and Galmoy zinc deposits areassociated. The presence of pervasive alteration, with associated massive anddisseminated pyrite together with sphalerite (zinc) and galena (lead)mineralization, has been demonstrated along the entire length of the PallasGreen Alteration Trend. Significant zinc mineralization has now been discoveredat the eastern end of the Trend at Castlegarde and near the western end,adjacent to Caherconlish. The intervening section remains relatively unexploredexcept for a few widely spaced drill holes, and is also considered highlyprospective. Emerging results confirm the belief that the Pallas Green projecthas the potential for more than one economic zinc discovery. Hole Number Depth (m) Intersection (m) Zinc (%) Lead (%) Silver (ppm)MN-636-24 348.50-349.55 1.05 11.27 0.82 2.0 349.55-350.50 0.95 2.09 0.08 0.4 Results previously reported Hole Number Depth (m) Intersection (m) Zinc (%) Lead (%) Silver (ppm) MN-2529-8 351.40-355.80 4.40 3.90 0.34 3.1 366.20-366.65 0.45 16.08 2.23 15.5 397.70-398.00 0.30 12.22 1.35 2.9 MN-2529-4 357.15-362.45 5.30 14.97 4.50MN-2529-5 366.95-368.40 1.45 5.39 1.18 385.70-388.40 2.70 9.78 0.02MN-2529-7 352.35-355.90 3.55 9.35 0.39 MN-636-22 313.50-315.40 1.90 3.33 0.10 328.75-329.85 1.10 6.16 0.47 332.95-338.85 5.90 6.93 0.89 MN-636-10 236.97-238.31 1.34 6.50 0.40MN-636-20 319.85-322.00 2.15 4.85 1.08 326.23-334.40 8.05 10.20 1.48 335.50-336.90 1.40 10.54 0.51 340.60-341.00 0.60 6.45 0.22 For further information please contact: Roger W. Turner +44 (0)7739 092 813 Danesh K. Varma +44 (0)20 7397 8154 or (0)7740 932 766 Terence N. McKillen +1 416 362 8243 or +1416 362 6686 Martin Eales, Collins Stewart +44 (0)20 7523 8320 Alex Buck, Buck Bias PR +44 (0)20 7384 0503 MINCO Plc is a silver and base metals development company traded on the AIMmarket in London. Ticker symbol "MIO" This information is provided by RNS The company news service from the London Stock Exchange