Minco PLC Regulatory News (MIO)

3 Oct 2006 07:30

Minco PLC03 October 2006 BILBAO PROJECT, ZACATECAS, MEXICO Drilling Update 3 October 2006 • Drilling intersects extensions to recently discovered massive sulphide zone• Minco believes there are at least four stacked mineralised horizons at Bilbao• Additional sulphide and oxide zinc-silver-copper-gold intersections• Approximately 4,000 metres of an 8,000 metres programme have been completed and 3 drill rigs are continuing to evaluate the project• Pre-feasibility study for development of zinc-copper oxide leaching being updated Commenting on the new intersections Mr Terence McKillen, Minco's Director ofExploration and Business Development said: "The new sulphide intersections indrillholes X10 and X11 confirm extensions to the sulphide mineralisationencountered previously in drillhole X13. There are indications that severalstacked mineralised horizons occur within the sequence at Bilbao which opens upthe potential for finding further mineralised bodies both in depth and alongstrike. New sulphide intersections observed in the latest drill holes, X14 andX15, are encouraging in this regard, and add support to this optimism." LONDON: October ( ), 2006: AIM quoted precious and base metals explorer anddeveloper Minco plc ("MIO") is pleased to announce additional drill results fromits Bilbao silver, zinc, lead, gold, copper project in Zacatecas, Mexico. Two holes drilled recently have intersected extensions to the massive sulphidezone reported previously from drillhole X13. Following on from the 35.00mintersection of massive sulphide in drillhole X13, which returned average gradesof 5.57% Zn, 4.92%Pb, 0.33%Cu and 80g/t Ag, drillhole X11, collared some 50metres away, has intersected a 29.0m zone of sulphide mineralisation including22.0 metres averaging 6.85%Zn, 1.39%Pb, 0.22%Cu and 100.0g/tAg. A zone ofenriched gold values, up to 0.96g/tAu, occurs above the main sulphideintersection. Drillhole X10, which was collared 100 metres to the west of hole X11, hasintersected four zones of silver-zinc-copper mineralisation totalling some 86.0mincluding oxide and sulphide bodies. The main sulphide zone occurs between116.00 and 141.00m (25.0m) and averaged 2.75%Pb, 3.49%Zn, 0.26%Cu and 141g/t Ag In addition to the mineralisation intersected in holes X10 and X11, two of themost recent holes, X14 and X15, collared respectively 72m southeast of and 100msouth of drillhole X11, have also intersected four zones of mineralisationranging from 2.0 to 16.0m in thickness. Assay results are awaited for theseintersections. Summary Table of Results from Bilbao Sulphide Drilling BH From To Intersection Zinc % Lead % Copper % Silver g/t (m)X10 116.00 141.00 25.00 3.49 2.75 0.26 141.0X11 153.00 175.00 22.00 6.85 1.39 0.22 100.0X13 166.95 201.95 35.00 5.57 4.92 0.33 80.0 The Bilbao deposit has been re-interpreted as a volcanogenic massive sulphidebody which has been contact metamorphosed by a granitic intrusion rather than asimple skarn-type as previously believed. The main sulphide body lies below thepreviously known oxide mineralisation and had no surface expression. Mincobelieves that there are at least four, stacked mineralised horizons present atBilbao. The main sulphide zone, with currently known dimensions of 250 x 60 x 25m,remains open to the south and the current drilling programme continues toinvestigate the morphology of the mineralised bodies in depth and along strike. Separately from the newly discovered sulphides, the near-surface oxide resourceat Bilbao is being evaluated by Behre Dolbear de Mexico who will also update theearlier pre-feasibility study for the development of a near-term zinc-copperleaching operation. Qualified Person The information presented in this press release has been reviewed and verifiedby Mr. Terence N. McKillen, B.A. (mod), M.A., M.Sc., P.Geo, Director ofExploration and Business Development. Mr. McKillen is the Qualified Person forthe purposes of the AIM Guidance Note on Mining, Oil and Gas Companies datedMarch 2006. Mr. McKillen is a graduate in Geology from Trinity College Dublinand holds a Master of Science degree in Mineral Exploration and Mining Geologyfrom the University of Leicester. He has over 38 years of explorationexperience. About Minco Minco PLC is an AIM-quoted precious and base metals exploration and developmentcompany with silver projects in Mexico and zinc exploration in Ireland. The drilling programme at the Bilbao Project near Zacatecas, Mexico wasinitiated to upgrade the silver, zinc, copper and lead oxide resources whichexist to a depth of approximately 80 metres. With the addition of further drillrigs, drilling was also initiated to test for deeper, un-oxidized, primarysulphide mineralisation. Minco has now completed approximately 4,000 metres of aplanned 8,000 metre diamond drill programme. The majority of assay results arestill awaited. Five holes have now intersected a major zone of sulphidemineralization at depths between 125 and 225 metres with thicknesses of 25 to 35metres. The five holes are approximately 100 metres apart which suggests asignificant deposit could be present. Minco now has three objectives for itson-going drill programme at Bilbao: (1) update the open pit study and confirmoxide resources; (2) determine the size of the sulphide zones; and (3) evaluatehigh grade silver veins within the adjoining license areas. For further information, www.minco.ie or contact: Terence McKillen, Director of Exploration +1 416 362 8243 / & Business Development +1 416 362 6686 Simon Beardsmore, Commercial Manager +44 (0)20 7397 8151Chris Rollason, Collins Stewart +44 (0)20 7523 8350Tom McCormack, Connexions +353 (0) 1 230 3015Alex Buck, BuckBias +44 (0)7932 740 452 This information is provided by RNS The company news service from the London Stock Exchange