Minco PLC Regulatory News (MIO)

6 Feb 2008 07:01

Minco PLC06 February 2008 Minco plc • HIGHER GRADE MINERALISATION ENCOUNTERED AT BILBAO PROJECT, ZACATECAS • 107.9 METRES OF ZINC, LEAD, COPPER AND SILVER MINERALISATION INTERSECTED London, 6th February 2008 - Minco plc (MIO), the London AIM quoted precious andbase metals exploration and development company, is pleased to report OrcaMinerals Limited ("Orca"), its wholly-owned Canadian subsidiary, has encounteredhigher grade and wider intersections from initial holes of an infill drillingprogramme on the lead-silver-zinc-copper resource at the Bilbao Project, locatedin the Central Mexican Silver Belt in the State of Zacatecas. Thick intersections of high grade zinc-lead-silver-copper mineralisation havebeen made in both oxides and primary sulphides in boreholes X-32 and X-33 whichare the first two of 14 planned holes of a 3,600m infill diamond drillprogramme. This programme is designed to upgrade the categorisation of theexisting resource outlined in 2006-07 in compliance with NI 43-101. Highlights X-33 • 31.90m (oxide) 7.61%Pb+Zn, 0.36%Cu & 124g/t Ag. • 48.90m (mixed oxide/sulphide) 4.98%Pb+Zn, 0.21%Cu & 59g/t Ag • 27.10m (massive sulphide) 6.46%Pb+Zn, 0.27%Cu, 0.21g/tAu & 56g/t Ag Highlights X-32 • 51.00m (massive sulphide) 5.54% Pb+Zn, 0.27% Cu, 0.149g/t Au, 85g/tAg, 0.30%Sn including 29.00m (massive sulphide) 9.08%Pb+Zn, 0.25%Cu, 96g/tAg & 0.4%Sn At Bilbao, mineralisation occurs in several stacked zones with separatelenticular replacement bodies being developed in sedimentary sequences adjacentto the contact with a granite intrusive. The main sulphide body encountered inthe present drilling is not exposed at surface and is distinct from the oxidesoutcropping in the surface open-cut. Hole X-33 is located between holes X-13 and X-14 and confirms the continuity ofmineralization and has intersected 168 metres of significant mineralizationincluding three zones of oxide or mixed oxide-sulphide mineralization, two zonesof primary massive sulphides and a mineralised contact skarn. Hole X-32, located100 metres to the west of X-33 has also intersected similar mineralization withmassive sulphide mineralization being intersected over a 51 metre width. Themineralised intersections are listed in Table 1. Supergene Enrichment Two zones of supergene enrichment were encountered within these mineralisedsections at 65.0-70.0 metres and 127.0-131.0 metres respectively in hole X-33having higher silver and copper grades, e.g., 5.0 metres averaging 211g/tsilver, 0.5% copper and 6.07% lead+zinc in the upper section and 4.0 metresaveraging 127g/t silver, 0.59% copper and 2.86% lead+zinc in the lower section. Skarn Feeder Zone The newly discovered lower sulphidic skarnoid gold-copper-tin zone is believedto be proximal to a mineralizing conduit or fault zone through which epithermalsolutions migrated to higher levels. High grade silver veins encountered in holeX-26 drilled at the end of the Phase 1 drilling which returned 2,440g/t silver(2.44 kilograms per tonne) in a one metre section, with an average grade of1,339g/t silver over 3.0 metres may also be related to such a feeder structure. Hole No. Mineralized Type From To Width m Au g/t Ag g/t Pb % Zn % Cu % Sn % Pb+Zn % BodiesX-33 1 Oxide 38.10 70.00 31.90 0.015 124 4.89 2.72 0.36 7.61X-33 2 Oxide 76.00 85.00 9.00 0.014 80 1.75 5.10 0.24 6.85X-33 3 Mixed 127.00 175.90 48.90 0.067 59 3.01 1.97 0.21 4.98X-33 4 Sulphide 175.90 203.00 27.10 0.211 56 0.28 6.18 0.27 6.46X-33 5 Sulphide 203.00 226.00 23.00 0.278 10 0.05 0.12 0.28 0.17X-33 6 Skarn 234.00 262.85 27.85 0.161 12 0.08 0.45 0.14 0.11 0.59 X-32 1 Mixed 124.45 130.00 5.55 0.021 7 2.12 7.56 0.19 0.01 9.68X-32 2 Sulphide 157.35 160.00 2.65 0.011 26 2.59 3.21 0.06 0.21 5.80X-32 3 Sulphide 179.00 230.00 51.00 0.149 85 2.61 2.93 0.27 0.30 5.54X-32 Subzone 3.1a Sulphide 179.00 191.00 12.00 0.029 82 6.42 6.39 0.23 0.22 12.82X-32 or Subzone Sulphide 179.00 208.00 29.00 0.113 96 4.32 4.76 0.25 0.40 9.08 3.1bX-32 3.2 Au-Cu-Sn Sulphide 191.00 194.00 3.00 0.818 79 0.29 0.54 0.30 0.53 0.83X-32 3.3 Au-Ag Sulphide 212.00 219.00 7.00 0.566 119 0.10 0.08 0.20 0.02 0.18 Table 1 Mineralised sections in DDH X-32 and X-33 at Bilbao Exploration Director's Comment Commenting on the announcement, Terence McKillen, Director of Exploration andBusiness Development said: "The results of the initial infill drilling at Bilbaoare very encouraging. The increased thickness of mineralization intersected inthese holes compared to the initial drilling could significantly add to theoverall tonnage potential of both the oxide and sulphide resource at Bilbao. Thepresence of a lower sulphide skarn zone suggests that we may be proximal to oneof the epithermal feeder zones. Orca plans a programme of step-out and deeperdrilling at Bilbao to evaluate the full potential of the identified resource." 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. 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 6796363Tom McCormack (Ireland PR) ConneXions +353 (0)1 230 3015 This information is provided by RNS The company news service from the London Stock Exchange