24 May 2013 09:09
MINCO REPORTS ENCOURAGING MINERALISATION IN PRELIMINARY DRILL RESULTS AT PENNINES EXPLORATION PROJECT
- Zinc lead mineralisation encountered in all four holes drilled
Dublin, 24 May 2013 - Minco Plc (AIM - "MIO") (the "Company") is very pleased to report that the first phase of exploration drilling at its Northern Pennines zinc-lead project in northern England has encountered elevated zinc-lead values over broad intervals in all four (4) drill holes completed in the programme to date.
In the third hole of the programme ("CA-003") Minco intersected disseminated mineralization at a debt of 430 metres grading 4.32% zinc ("Zn") and 13.43 grams per tonne silver ("gpt Ag") over2.35 metres, which includes an interval grading 12.2% Zn and 34gpt Ag over 0.3 metres, and another interval grading 11.3% Zn and 45 gpt Ag over 0.34 metres.
A second intersection, higher up in the same hole (CA-003) at a depth of 144 metres, encountered disseminated mineralization grading 2.93% Zn, 0.59% lead ("Pb") and 5.37 gpt Ag over 5.75 metres.
The broadest zone of disseminated low grade mineralization was encountered in the fourth hole of the programme ("CA-004"), which has not been assayed.
PRELIMINARY EXPLORTION RESULTS
A total of 2,221 metres of drilling was completed in four (4) exploration drill holes by Irish Drilling Limited under contract with Minco Mining Limited, a wholly-owned UK subsidiary of Minco plc. Drilling in this initial phase of work was very widely spaced on a reconnaissance grid measuring 15 by 15 kilometres in size. The first four reconnaissance holes were widely separated. Holes CA-002 and CA-003 were collared 200 meters apart and 1,300 metres to the northwest of Hole CA-001. Hole CA-004 was collared 2,000 metres to the west of Hole CA-003.
Progress of the drilling was considerably slower than originally anticipated due primarily to severe winter weather, poor ground conditions and cold nights below freezing in this mountainous area, but productivity should improve during the summer months.
Widespread, generally low grade, zinc-lead-pyrite mineralization was consistently encountered in all four holes at a vertical depth of approximately 400 metres below surface, in close proximity to and apparently associated with geological units both above and below the Whin Sill intrusive.
Commenting on the preliminary drilling results, John Kearney, Chief Executive Officer of Minco said, "We are very encouraged that our first four holes in the Pennines all intersected widespread, albeit low grade, mineralization. The two intersections of 12.2% zinc and 11.3% zinc in the third hole were particularly encouraging and demonstrate that economic grade mineralization can exist at the target depth of 350 to 400 metres below surface."
The phased preliminary exploration programme is designed to test the Minco's conceptual model that zinc-lead mineralization may exist beneath the old historical underground mine workings, in the geological succession structures that lie beneath the Great Limestone geological formation.
None of these areas beneath the historical mine workings have previously been tested by diamond drilling. Minco believes that this is the first ever exploration diamond drilling to be undertaken in the historic Northern Pennine Orefield.
The preliminary results confirm the potential for extensive mineralization, not only at deeper stratigraphic levels below the historic mine workings, but also into previously undeveloped and unexplored areas laterally from the old workings.
ASSAY RESULTS
The highest grade intersections were encountered in hole CA-003 grading 4.32% Zn and 13.4 gpt Ag over 2.35 metres at a vertical depth of approximately 430 metres.
TABLE 1: Summary of Assay Results for Hole CA-003
From (m) | To (m) | Length (m) | % Zn | % Pb | gpt Ag |
143.30 | 144.20 | 0.90 | 3.67 | 0.17 | 3 |
144.20 | 145.00 | 0.80 | 0.69 | 0.94 | 9 |
145.00 | 145.15 | 0.15 | 7.14 | 0.01 | 1 |
145.15 | 145.95 | 0.80 | 1.02 | 1.10 | 10 |
145.95 | 146.20 | 0.25 | 1.40 | 0.15 | 2 |
146.20 | 146.80 | 0.60 | 1.63 | 1.30 | 12 |
146.80 | 147.45 | 0.65 | 1.98 | 0.13 | 2 |
147.45 | 148.00 | 0.55 | 2.95 | 0.18 | 2 |
148.00 | 148.30 | 0.30 | 10.55 | 0.45 | 4 |
148.30 | 149.05 | 0.75 | 4.95 | 0.63 | 2 |
5.75 | 2.93 | 0.59 | 5.37 | ||
429.70 | 430.00 | 0.3 | 12.2 | 34 | |
430.00 | 430.40 | 0.4 | 4.02 | 8 | |
430.40 | 430.90 | 0.5 | 0.1 | ||
430.90 | 431.25 | 0.35 | 11.3 | 45 | |
431.25 | 432.05 | 0.8 | 1.1 | 3 | |
2.35 | 4.32 | 13.43 |
Hole CA-003 intersected disseminated mineralisation grading 2.93% Zn, 0.59% Pb and5.4 gpt Ag over 5.75 metres at the level of the historic workings 144 metres below surface. This intersection is significant because it is located approximately 150 metres away from any of the recorded historical mining development in the area, and indicates potential for further mineralization not previously known at the same level as the old historic workings.
Minco believes that the area in the vicinity of these former mine workings has never previously been explored by diamond drilling, since the old-timers workers had only limited access, generally tunneling into the mountain sides from valley bottoms, and did not have the use of modern drilling equipment and technology.Minco is advancing to the second phase of exploration in the programme and plans to drill a further four (4) additional exploration holes in Cumbria and Northumberland Counties. The Company expects it will re-commence drilling shortly subject to the receipt of consents to drill in the summer months from the respective County Councils and other regulatory agencies.
THE NORTHERN PENNINE OREFIELD - A RICH HISTORY OF MINING
The Northern Pennine Orefield covers an area of approximately 350 square miles and had a significant past production of lead, zinc, barite and fluorite. It is the second largest occurrence of zinc-lead mineralization in the British Isles after the Irish Midlands, and was the primary production area for zinc and lead mineralization in Europe during the early part of the twentieth century. Mining in this area ceased prior to the Second World War.
Mining in the area was via adits and was confined to the Great Limestone geological formation and the adjacent sandstone units, generally located at a depth of about 150 meters and about 450 meters above the base of the Lower Carboniferous succession, which in the midlands of Ireland hosts the extensive Irish lead-zinc ore field, and six successful lead-zinc mines and numerous other mineral deposits.
SAMPLING AND QUALITY CONTROL
All drill cores was logged and sampled by Minco geological and technical staff with cores descriptively logged on site, aligned, marked for sampling and split longitudinally using a diamond saw. Samples consist of halved NQ-size diamond core (47.6 mm diameter core). One half of the core is preserved in core boxes for future reference. As part of Minco's QA/QC protocols, samples comprising halved core were bagged, tagged, sealed and delivered to OMAC Laboratories, an ALS Group company, in Co. Galway, Ireland for analysis of lead, zinc and silver content. Samples were crushed to 70%-2mm, split using a riffle splitter and 500g pulverized to 85%-75ψm for analysis, using an oxidizing digestion and an ICP-AES instrument. Samples are nominally one meter in length, except where specific geologic parameters required a different interval be sampled. Sample preparation was completed by OMAC Laboratories. QA/QC for all elements, using duplicates, blanks and standards, were within acceptable ranges.
COMPETENT PERSON
Terence N McKillen, B.A. (MOD), M.A., M.Sc., P.Geo, Director, 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 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 holding 30 million shares (approximately 29%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-"XAG").
On April 30, 2013 Minco announced that it had entered into a binding agreement to complete a business combination with Buchan's Minerals Corporation ("Buchans") ("BMC" - TSX.V), subject to approval of Buchans shareholders, pursuant to which Minco will acquire all of the outstanding common shares of Buchans that it does not already own in exchange for shares of Minco by way of a statutory scheme of arrangement on the basis of 0.826 of a Minco shares for each share of Buchans. Upon completion of the acquisition of Buchans, Minco will hold 100% of the Woodstock Project. Minco already holds 15.4 million shares (approximately 10%) of Buchans.
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: Chairman and Chief Executive +1 416 362 6686
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