20 Mar 2013 12:30
MINCO INTERSECTS 202.5 METRES OF 11.08% MANGANESE
AT WOODSTOCK MANAGNESE PROJECT, NEW BRUNSWICK, CANADA
Dublin, 20 March 2013 - Minco plc (AIM - "MIO") (the "Company") together with its partner, Buchans Minerals Corporation ("Buchans Minerals"), is pleased to announce further drilling results for the Woodstock manganese project in New Brunswick. The second batch of assays from the current program reported within this release contains the results from five (5) drill holes located on two (2) vertical cross sections across the width of the Plymouth manganese deposit.
These results include three (3) holes on Section 12-North (12N) where the deposit is interpreted to be approximately 190 metres wide at surface and extending to depths of 230 metres or more; and, two (2) drill holes located along Section 15N where mineralization is projected to be 45 metres wide at surface and extend to depths of 140 metres or more.
DRILL HOLE RESULTS SUMMARY (core lengths and intercept depths in metres)
SECTION 12N (surface width 190 metres)
• PL-13-013 grading 11.43% Mn over 19.0 m (11.8 - 30.8 m)
• PL-13-014 grading 11.08% over 202.5 m (3.5 - 206.0 m)
• PL-13-016 cut intersections grading
o 10.11% over 99.0 m (89 - 188 m)
o 11.56% over 30.0 m (215 - 245 m)
o 13.23% over 39.0 m (302 - 341 m)
SECTION 13N (surface width 225 metres)
• PL-13-011 (previously reported on February 14, 2013)
o 11.25% Mn over 113.85 m (51.65 - 165.5 m)
• PL-11-010 (previously reported by Buchans Minerals on September 26, 2011)
o 11.27% over 101.0 m (10 - 111 m)
o 11.67% over 78.0 m (153 - 231 m)
• PL-11-009 (previously reported by Buchans Minerals on September 26, 2011)
o 8.61% over 44.0 m (10 - 54 m)
o 12.51% over 78.0 m (69 - 147 m)
SECTION 14N (surface width 90 metres)
• Holes on this section were previously reported by Buchans Minerals on September 7, 2011
• PL-11-008: 9.22% Mn over 63.0 m (80 - 143 m)
• PL-11-007: 11.43% Mn over 89.0 m (21 - 110 m)
• PL-11-006: 11.41% Mn over 45.0 m (5 - 50 m)
SECTION 15N (surface width 45 metres)
• PL-13-012 grading 10.82% Mn over 53.0 m (56 - 109 m)
• PL-13-015 cut intersections grading
o 10.01% Mn over 21.0 m (152 - 173 m)
o 10.06% over 36.0 m (69 - 147 m)
A map of the drill hole locations, sections and detailed assays can be viewed on the Company's website at www.minco.ie/pdf/Woodstock20130320.pdf and www.minco.ie/pdf/Assays20130320.pdf
Highlights from the three (3) holes on Section 12N include hole PL-13-014 that intersected 11.08% Mn over 202.5 metres core length from 3.5 to 206.0 m (136 m approximate true width) and hole PL-13-016 that intersected 10.1% Mn over 99.0 metres core length from 89.0 to 188.0 m (78 m approximate true width). Hole PL-13-016 also cut two (2) additional lower intervals grading 11.56% Mn over 30.0 metres core length and 13.23% Mn over 39.0 m core length (23 metres and 31 metres approximate true widths respectively). The most easterly hole on this section, PL-13-013, intersected 11.43% Mn over 19.0 metres core length from 11.8 to 30.8 m (16 m approximate true width).
Highlights from the two holes on Section 15N include hole PL-13-012 that returned assays averaging 10.82% Manganese over 53.0 metres core length from 56.0 to 109.0 metres (45 m approximate true width) and hole PL-13-015 which intersected an upper interval grading 10.01% Manganese over 21.0 metres core length from 152.0 to 173.0 metres (17 m approximate true width) and a lower intercept averaging 10.06% Manganese over 36.0 metres core length from 185.0 to 221.0 metres (30 m approximate true width).
Mineralization within the Plymouth deposit is interpreted to be hosted by a steep west dipping, sedimentary sequence that likely represents several lobes of mineralization within a synclinal fold structure. The 2013 drill program was designed to allow estimation of an Inferred resource estimate for the historic Plymouth deposit compliant with Canadian National Instrument 43-101 ("NI-43-101"). The program adds to drilling results obtained by Buchans Minerals in 2011 (five holes, PL-11-006 to PL-11-010) as well as four (4) historic holes drilled by past operators in 1987 (PL-87-002 to PL-87-005) for which Buchans Minerals has examined archived drill cores and obtained full assay certificates.
DRILL PROGRAM UPDATE
A total of fifteen (15) holes that total 4,082 metres of NQ-sized drilling comprise the 2013 Winter Drill Programme which is now complete. The planned programme was extended by one drill hole (PL-13-025) which was completed on March 15 that was designed to test mineralization below hole PL-13-011, which returned assays averaging 11.25% Manganese over 113.85 metres core length (95 m approximate true width) within the west-central portion of the deposit (see Press Release dated February 14, 2013). Sampling is expected to be complete over the next week and outstanding assays are expected to be available shortly.
Minco's drilling program 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. Mercator Geological Services Limited ("Mercator") of Dartmouth, Nova Scotia has been retained to complete a National Instrument 43-101 compliant Inferred Resource estimation on the project following the receipt of final assays.
WOODSTOCK MANGANESE PROJECT
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.
The 5,800 hectare Woodstock Manganese property has excellent infrastructure, including railway lines (16 km west) as well as the TransCanada Highway and major electrical transmission lines located less that 5 kilometres to the east. The Plymouth deposit is located less than 10 kilometres east of the US border and Highway Route 95 (an extension of US Interstate 95) passes less than a kilometre south of the deposit.
During 2011, Buchans Minerals completed a drilling program of five holes that successfully intersected manganese mineralization at the Plymouth deposit. Hole 11-010 of this initial test program contained two intersections including an upper intercept averaging 11.27% Mn over 101.0 metres (from 10m to 111m) and a lower intercept averaging 11.67% Mn over 78.0 metres (from 153m to 231m). Other results from Hole 11-009 included an upper intercept of 8.61% Mn over 44.0 metres (from 10m to 54m) and a lower intercept of 12.51% Mn over 78.0 metres (from 69m to 147m). - See Buchans Minerals Press Release dated September 26, 2011.
MINCO OPTION AGREEMENT
In October 2012, following completion of a six-month review, Minco entered into an option agreement with Buchans Minerals 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 program, an inferred resource estimation and hydrometallurgical test work. The drilling portion of the work programme is now complete.
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 AND QAQC
The drilling program is being managed by Buchans Minerals under the direction of Paul Moore, MSc, P.Geo. (NL), Vice-President Exploration for Buchans Minerals Corporation, a Qualified Person in compliance with National Instrument 43-101 of the Canadian Securities Administrators.
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.
Logging, sampling and assaying procedures are being completed by Buchans Minerals personnel as per Buchans Minerals QA/QC protocols. Logging, sampling and assaying procedures were completed by Buchans Minerals personnel as per Buchans Minerals QA/QC protocols as described in detail in the Company's press release of February 14, 2013. All assaying is being conducted by ALS Minerals as per procedures described in the Company's press release of February 14, 2013.
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 the United Kingdom, Ireland and Canada 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").
Minco currently holds approximately US$15 million in cash and is also evaluating a number of other investment opportunities in the minerals industry in North America and Europe.
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