9 Apr 2013 13:30
MINCO REPORTS FURTHER POSITIVE DRILLING RESULTS AT WOODSTOCK MANAGNESE PROJECT, NEW BRUNSWICK, CANADA
·; NEW INTERSECTION OF 11.28% MANGANESE OVER 217.4 METRES
Dublin, 09 April 2013 - Minco plc (AIM - "MIO") (the "Company") together with its partner, Buchans Minerals Corporation, is pleased to announce further positive drilling results for the Woodstock manganese project in New Brunswick.
The third batch of assays from Minco's recently completed drilling program includes results from three (3) drill holes located in the southern portion of the deposit along Section 11-North ("Section 11N"), where the deposit is interpreted to be approximately 165 metres in width at surface and extending to depths of 215 metres or more.
HIGHLIGHTS FROM SECTION 11N
·; Hole PL-13-022A that intersected 11.28% Mn over 217.4 metres core length from 93.6 to 311.0 m (180 m approximate true width)
·; Hole PL-13-020 that intersected 9.32% Mn over 202.0 metres core length from 12.0 to 214.0 m (139 m approximate true width), including two sections of 10.21% Mn over63.5 metres core length and 10.52% Mn over 39.0 metres core length (44 metres and 27 metres approximate true widths respectively)
·; Hole PL-13-018, the most easterly hole on this section, intersected 7.41% Mn over 29.5 metres core length from 44.0 to 73.5 m (20 m approximate true width), plus an upper section assaying 11.38% Mn over 3.1 metres from 7.9 to 11.0 metres (2 metres true width)
Fifteen (15) holes were completed in Minco's 2013 winter drill programme, achieving a total of 4,082 metres of NQ-sized drilling. For more information, see Minco Press Releases dated February 14, March 13, and March 20, 2013.
Minco's drilling program was 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. All remaining assays are anticipated to be available in April and independent consultants, Mercator Geological Services Limited 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.
On March 13, 2013, Minco announced the results of a successful preliminary bench scale pre-concentration test program conducted on a composite sample from the Plymouth deposit 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.
Pre-concentration methods assessed included High Gradient Magnetic Separation (HGMS), Flotation and Heavy Media Separation (HMS) with the following results:
·; Preliminary High Gradient Magnetic Separation tests produced a rougher concentrate ranging between 15.1% and 19.4 % Mn, with recoveries ranging between 71.8% and 88.5%
·; Preliminary Flotation tests produced rougher concentrates between 17.4% and 18.7% Mn, with recoveries ranging between 58.1% and 68.6%
·; Heavy Media Separation results for the concentrates ranged between 15.24% and 15.82% Mn, with recoveries ranging between 77.1% and 89.5%.
These new metallurgical test results suggest that the Woodstock manganese mineralization is amenable to industry accepted pre-concentration methods with the potential to upgrade the deposit from a grade of approximately 11% Mn to a concentrate grade of 15% to 20% Mn.
SUMMARY OF PLYMOUTH DRILLING*
SECTION 11N (near surface width 165 metres)
• PL-13-018 grading 7.41% Mn over 29.5 m (44.0 to 73.5 m)
• PL-13-020 grading 9.32% Mn over 202.0 m (12.0 to 214.0 m)
• PL-13-022A grading 11.28% Mn over 217.4 m (93.6 to 311.0 m)
SECTION 12N (surface width 190 metres)
• Holes on this section were previously reported on March 20, 2013
• 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)
• Holes on this section were previously reported on March 20, 2013
• 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)
*Results for sampling received to date, including holes previously reported (core lengths and intercept depths in metres)
See Minco Press Releases dated February 14; March 13; and, March 20, 2013. A map of the drill hole locations, sections and detailed assays can be viewed on the Company's website at www.minco.ie/pdf/Woodstock20130409.pdf and www.minco.ie/pdf/Assays20130409.pdf.
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.
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 QA/QC
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$14 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