13 Mar 2013 12:30
MINCO ANNOUNCES SUCCESSFUL METALLURGICAL PRE-CONCENTRATION TESTS ON WOODSTOCK MANGANESE PROJECT, NEW BRUNSWICK, CANADA
Dublin, 13 March 2013 - Minco plc (AIM - "MIO"), together with its partner, Buchans Minerals Corporation, are pleased to report successful results of a preliminary bench scale pre-concentration test program conducted on a composite sample from the Plymouth deposit located on the Woodstock manganese property in New Brunswick, Canada.
The tests were conducted by Thibault & Associates Inc. of Fredericton, New Brunswick as part of Minco's first phase $1.250 million program of exploration and development on the Woodstock property, which includes the current metallurgical test work, an ongoing drilling programme and an inferred resource estimation.
Pre-concentration methods assessed included High Gradient Magnetic Separation (HGMS), Flotation and Heavy Media Separation (HMS) with a view to upgrading the deposit, from a grade of approximately 11% manganese ("Mn") to a concentrate grade of 15% to 20% Mn for the purpose of potentially improving economics of a proposed Electrolytic Manganese Metal ("EMM") production plant. The tests were conducted on material from a composite sample taken from five drill holes drilled on the Plymouth deposit in 2011.
The new metallurgical test results suggest that the Woodstock manganese mineralization is amenable to industry accepted pre-concentration methods and this opens the door to investigation if a pre-concentration step will lower operating costs and improve the economics of the project to achieve the goal of Woodstock being potentially among the lowest cost EMM projects in the world.
High Gradient Magnetic Separation (HGMS) Results:
HGMS tests were conducted at the laboratories of Sala, Sweden, under the direction of Thibault & Associates Inc. Preliminary tests produced a rougher concentrate ranging between 15.1% and 19.4 % Mn with recoveries ranging between 71.8% and 88.5%.
Flotation Results:
Preliminary scoping flotation tests were conducted by Thibault & Associates Inc. to assess the effectiveness of alternative reagents. Resulting rougher concentrates were found to range between 17.4% and 18.7% Mn with recoveries ranging between 58.1% and 68.6%.
Heavy Media Separation (HMS) Results:
HMS tests were conducted by Thibault & Associates Inc. on the +1mm weight fraction of the composite sample which contained 58.5% of the manganese in the composite sample. Results for the concentrates produced from the +1mm fraction ranged between 15.24% and 15.82% Mn with recoveries ranging between 77.1% and 89.5%.
Further assessment of a fully integrated process using pre-concentration and hydrometallurgical technologies to produce EMM will be conducted by Thibault & Associates Inc. This assessment will seek to reduce acid consumption through pre-concentration and reduce both capital and operating costs associated with processing the Plymouth mineralization.
ONGOING DRILLING PROGRAMME
In February 2013 Minco announced initial drilling results for the first hole of Minco's ongoing drilling programme at Woodstock. The first hole of the current programme, Hole PL-13-011 returned assays averaging 11.25% Manganese over 113.85 metres core length representing a geological true width of approximately 95 metres across one of the main lobes of mineralization which comprise the Plymouth deposit. Results from hole PL-13-011 combined with the results from historic trenching and drilling along this section confirm a near surface width of mineralization over approximately 225 metres, which typically extends to vertical depths of 100 metres or more (see the cross section on the Company's website).
Twelve (12) holes comprising a total of approximately 3,500 metres of drilling have been completed so far in the planned fifteen (15) hole programme. The programme is expected to be completed during March 2013 and is estimated to comprise a total of 4,000 metres of drilling at the Plymouth deposit.
Minco's drilling programme is designed to confirm and extend the manganese mineralization and assess its grade and continuity with a view to defining an inferred mineral resource for the Plymouth deposit.
The Woodstock property hosts three deposits of sediment-hosted manganese-iron mineralization. These deposits include the Plymouth and two Hartford deposits (North & South), located 5 kilometres west of the town of Woodstock. The Plymouth deposit is believed to extend from surface to a minimum depth of 150 metres and has been reported to host a historic, uncategorized resource estimate of 51.2 million tons (46.5 million tonnes) averaging 10.9% Mn (manganese) and 13.3% Fe (iron). The historical reports indicate that the Plymouth resource estimate was compiled from data acquired from a total of 17,388 feet (5,300 metres) of drilling. The quoted historical resource estimate for the Plymouth deposit is not NI 43-101 compliant and should not be relied upon.
MINCO OPTION AGREEMENT
In October 2012, following completion of a six-month review, Minco entered into an option agreement with Buchans Minerals Corp to further explore and develop the Woodstock manganese property. The review carried out by Minco to date indicates that the Woodstock manganese project has the potential to be developed into a significant long-term, mine and processing facility capable of producing high purity Electrolytic Manganese Metal (EMM) or Electrolytic Manganese Dioxide (EMD).
Under the terms of the option agreement dated October 31, 2012, Minco will earn a 10% interest in Canadian Manganese Company Inc. ("CMC"), a wholly owned subsidiary of Buchans Minerals that owns 100% of the Woodstock manganese property, by spending $1.250 million on exploration and development which includes the current drilling programme, an inferred resource estimation and metallurgical test work.
Following its initial expenditure of $1.250 million, Minco will have 30 days to elect to continue with further expenditures of $750,000 over a period of six months (second phase expenditures) to complete a preliminary economic assessment ("PEA") on the Plymouth deposit to earn a further 10% interest in CMC. If Minco does not elect to proceed with the second phase of expenditures, Buchans Minerals will have a 90-day option to buy back Minco's 10% interest in CMC back for $1.250 million.
Upon completion of the PEA, Minco will have an exclusive 3 month option to elect to earn a further 30% interest in CMC by completing an NI 43-101 compliant pre-feasibility report on the Plymouth deposit within two years (the budget to be determined at that time).
QUALIFIED PERSONS
J. Dean Thibault, P.Eng., Senior Process Chemical Engineer and Principal of Thibault & Associates Inc., of Fredericton, New Brunswick, acted as Qualified Person with respect to the metallurgical bench scale test program information contained in this release.
Benjamin Batson, P. Geo., Vice President (Exploration - North America) of Centrerock Mining Limited (a wholly owned subsidiary of Minco plc), a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators, has reviewed the contents of this release for accuracy.
Terence N McKillen, B.A. (MOD), M.A., M.Sc., P.Geo, Chief Executive Officer, is Minco's Competent Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated March 2006. Mr. McKillen is a graduate in Natural Sciences (Geology) from Trinity College Dublin and holds a Master of Science degree in Mineral Exploration and Mining Geology from the University of Leicester. He has over 40 years of exploration experience in Ireland and internationally.
ABOUT MINCO
Minco Plc, registered in the Republic of Ireland and listed on the AIM Alternative Investment 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 in evaluating a manganese project in New Brunswick, Canada and with investments in zinc‐silver projects in Mexico through a holding of 30 million shares (approximately 29%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-"XAG").
Minco holds 15.4 million shares (approximately 10%) in Buchans Minerals Corporation also listed on the TSX.V ("BMC").
Minco also holds a 2% NSR royalty on the Curraghinalt gold property in Northern Ireland which is being explored by Dalradian Resources Inc. (TSX-"DNA").
For further information of Minco refer to Minco's website at www.minco.ie.
For further information, www.minco.ie or contact:
John Kearney: Executive Chairman +1 416 362 6686
Terence McKillen: Chief Executive +1 416 362 8243
Danesh Varma: CFO & Company Secretary +44 (0) 8452 606 034
Peter McParland: Director - Ireland +353 (0)46 907-3709
John Frain/Fergal Meegan: (NOMAD) Davy +353 (0)1 6796363
Chris Rourke/ Guy Wheatley: (Corporate Advisor| Broker)
Beaufort International, London +44 (0)20 7382 8387