Minco PLC Regulatory News (MIO)

13 Dec 2006 07:01

Minco PLC13 December 2006 Drilling Results and Update - Bilbao Project, Zacatecas, Mexico London, 13 December 2006 - Minco plc, (MIO), the AIM listed precious and basemetals exploration and development company today announces an update on itsdrilling and evaluation programmes at the Bilbao zinc-silver-copper-lead projectin Zacatecas, Mexico. • Recent drilling extends the southern and western limits of the known zinc-silver-copper-lead mineralisation at Bilbao • Mineralisation remains open in depth and along strike • Resource evaluation for sulphide mineralization to be completed by early January 2007 • Prefeasibility Study to be completed in early 2007 • To date, a total of 7,135 metres of diamond drilling has been completed Minco's Executive Chairman, Roger Turner, commented "The continuing success ofdrilling at Bilbao is adding significant potential to the size and extent of themineralised base metal and silver ore bodies and has encouraged us to embarkupon a Prefeasibility Study to be completed early in 2007. We anticipatecompleting our initial resource evaluation based on drill results to-date byearly January 2007." Latest Drilling Results A total of 2,285 metres of diamond drilling has been completed on the Bilbaodeposit since the previous release on October 23, 2006 for a total of 7,135metres. Results for drill holes X14 to X19 are reported below. Holes X20, X21,X23 and X24, 100 metres step-out holes, have all intersected visible zones ofbase metal and silver massive sulphide mineralization, extending the knownextent of the sulphide deposit over an area of about 225 metres by 300 metresand over thicknesses up to 35 metres. In particular, hole X21 has intersectedsemi-massive to massive sulphides associated with a chlorite skarn over 70metres down dip of a well mineralised intersection in hole X19. These new intersections confirm that mineralisation remains open in depth to thesouth and along strike to the west. The 5.0 metre intersection in hole X20averaging 4.95% zinc, 6.01% lead, 0.41% copper and 134 grams per tonne silver,is considered to be particularly important in this regard. Wider spaced drilling outside of the main mineralised zone has demonstrated thatmineralisation is widespread within the Bilbao property. Holes X22 and X25located respectively 500 metres and 637 metres to the southeast of the knownmineralization, intersected semi-massive sulphide mineralization over intervalsof 11.85 metres and 2.80 metres respectively. These intersections are notbelieved to be part of the main sulphide body and suggest a separate mineralisedzone. The oxide mineralization occurs in two zones, as indicated in drill hole X14,one with a thickness of 17.30 metres averaging 4.09% zinc, 4.05% lead, 0.66%copper and 91grames per tonne silver and a further zone of 7.0 metres thicknessaveraging 3.42% zinc, 4.10% lead, 0.60% copper and 91grames per tonne silver.Sampling of the oxides has been undertaken in all of the old open-cuts as wellas on the underground 40 metre Level. Drilling is ongoing with two drill rigs. Resource Estimate and Pre-Feasibility Study are Underway A Datamine study of the sulphide deposits commenced in mid November which isexpected to produce an initial resource estimate by early January, 2007 based ondrill hole data completed by that time. Metallurgical and mineralogical test work has commenced on the Bilbao sulphidemineralization which together with other studies will form part of aPrefeasibility Report which has been commissioned under the leadership of Mr. AlSummers, an independent consulting mining engineer and former Vice President ofOperations, Hecla Mining Inc. Adjacent Mineral Licenses Acquired In a follow up to Minco's success at Bilbao, further areas of mineral claimshave been acquired in the Panfilo Natera Mining district. Three claims,totalling 2,524 hectares have been acquired surrounding Minco's holdings in theMilagros area and a further 7,200 hectares have been acquired in the Villa deRamos silver district. All of these claim groups are underlain by the Chilitosvolcano-sedimentary sequences which are prospective for massive sulphideoccurrences. The total claim area held by Minco in the Panfilo Natera Miningdistrict near Zacatecas, including Bilbao, is now 16,833 hectares. Results of the Bilbao drilling campaign are summarised in the following table: New Drill Results from Bilbao Hole From To Width (m) Zinc % Lead % Copper Silver (m) (m) % g/tOxide X14 41.70 59.00 17.30 4.09 4.05 0.66 91Oxide X14 69.00 76.00 7.00 3.42 4.10 0.60 91Sulphide X14 184.00 193.00 9.00 3.50 1.18 0.31 86Oxide* X15 57.00 60.00 3.00 2.03 3.55 0.05 53Oxide X15 96.00 106.00 10.00 1.49 2.19 0.17 38Oxide X15 118.00 124.00 6.00 1.70 3.69 0.23 161Sulphide X15 207.00 213.00 6.00 1.64 1.59 0.63 136Sulphide X19 194.00 206.00 12.00 2.24 3.53 0.30 37Sulphide X19 237.00 243.00 6.00 3.91 3.53 0.20 37Sulphide X19 256.00 264.00 8.00 2.02 3.04 0.15 140Sulphide X20 194.00 200.00 6.00 3.36 0.84 0.23 114Sulphide X20 208.00 213.00 5.00 4.95 1.66 0.28 81 New Drill Intersections from Bilbao (Assays Awaited) Hole From To Width (m) (m) (m)Oxide B6B 186.00 189.40 3.40 Waiting for AssaysSulphide X18 228.50 237.00 8.50 Waiting for AssaysSulphide X21 242.00 274.00 32.00 Waiting for AssaysSulphide X21 274.00 291.00 17.00 Waiting for AssaysSulphide X22 210.30 213.20 2.90 Waiting for AssaysSulphide X22 233.30 245.15 11.85 Waiting for AssaysSulphide X23 252.50 253.80 1.30 Waiting for AssaysOxide X24 136.50 138.80 2.30 Waiting for AssaysOxide X24 154.60 168.80 14.20 Waiting for AssaysSulphide X24 210.60 213.05 2.45 Waiting for AssaysSulphide X24 217.70 222.55 4.85 Waiting for AssaysSulphide X24 224.40 225.75 1.35 Waiting for AssaysSulphide X25 110.50 113.40 2.80 Waiting for Assays Drill Results from Bilbao (Previously Released) Hole From To Width (m) Zinc Lead Copper Silver (m) (m) % % % 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* B6A 151.30 153.90 2.60 1.22 1.59 0.03 149Sulphide* B6A 224.00 225.50 1.50 4.21 0.73 0.10 89Oxide* 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* X10 75.00 97.00 22.00 2.35 0.63 0.63 14Oxide* X10 103.00 113.00 10.00 3.32 1.66 0.20 60Sulphide* X10 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* X11 69.00 73.00 4.00 4.13 0.50 0.29 71Sulphide* X11 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* X13 132.50 151.80 19.30 8.36 1.52 0.10 23Sulphide* X13 166.95 201.95 35.00 5.57 4.92 0.33 80 Background The Bilbao site was mined for oxide ores prior to closure during the 1940s. In1994, Watts Griffis & McOuat prepared a resource estimate on behalf of MineraPortree amounting to 3.2 million tonnes at an average grade of 3.9% zincequivalent using a 0% cut-off grade. This work was also the basis of outlineengineering and metallurgical studies by Kilborn Engineering and LakefieldResearch which were completed 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 such resourcesearly in 2007. During the course of the 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 zinc-copper-lead-silver mineralisation up to 35 metres wideat depths ranging from 115 metres to 260 metres. Currently drilling shows sulphide mineralisation extending over an area of some225 metres along strike and 300 metres down dip towards the southwest.Mineralisation remains open both along strike and down dip and Minco iscontinuing to drill to establish the lateral extent of the mineralisation. Qualified Person Dr. Anthony C. Gallon, C.Eng., Chief Geologist, is the Qualified Personresponsible for overseeing the day to day exploration work at Bilbao. Dr. Gallonis a graduate of the Universities of Leeds and Nottingham has over 38 years ofexploration experience. The information in this press release has been reviewedand verified by Mr. Terence N McKillen, BA (MOD), MA, M.Sc., P.Geo, Director ofExploration and Business Development. Mr. McKillen is the Qualified Person forthe purposes of the AIM Guidance Note on Mining, Oil and Gas Companies datedMarch 2006. Mr McKillen is a graduate in Geology from Trinity College Dublinand holds a Master of Science degree in Mineral Exploration and Mining Geologyfrom the University of Leicester. He has over 38 years of explorationexperience. 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)79-3274-0452 This information is provided by RNS The company news service from the London Stock Exchange