15 Sep 2014 07:00
MINCO ANNOUNCES DRILLING AT BUCHANS, NEWFOUNDLAND, CANADA
Toronto, 15 September 2014 - Minco plc (AIM - "MIO") (the "Company"), is pleased to announce the start of a four hole (525 metre) exploration drilling programme on its zinc/lead/copper VMS project in Buchans, central Newfoundland, Canada.
The programme will test for shallow extensions to the former Lucky Strike orebody, where Asarco mined 5.6 Mt averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au. Drilling will focus within an area 150 metres south of the former mine workings, where historic shallow drilling intersected high-grade massive sulphides but with poor core recoveries experienced by historic, small-core diameter drilling.
Recent relogging of archived drill cores by Minco during its summer 2014 exploration program suggests high-grade massive sulphide mineralization occurs within this area at depths of less than 100 m beneath a shallow, south-dipping fault structure. Additionally Minco's recent interpretative work suggests that mineralization in the area may be more continuous than previously thought; potentially representing a near surface, continuous mineralized zone with potential for further extensions down dip to the south and west.
The area being targeted lies partially within the area of the proposed open pit of the Lundberg deposit as defined in the positive Preliminary Economic Assessment ("PEA") completed in 2011, as well as revised pit designs generated since Minco updated and expanded the Lundberg resource in 2013. While this mineralization may be of potential benefit to future development of the Lundberg deposit, this new drilling is being undertaken primarily as exploration of the potential for discovery of new high-grade massive sulphides south and west of the former Lucky Strike mine.
Minco last drilled in this area in 2012. At that time, vertical drill hole H-12-3453 intersected 2.0 metres averaging 4.05% Cu, 11.5% Pb, 22.7% Zn, 230 g/t Ag and 1.33 g/t Au between 29.2 and 31.2 m vertical depth. Relogging undertaken by Minco in 2014 confirms that several historic drill holes intersected high-grade massive sulphides in this area, though not all intercepts were assayed and several holes encountered poor core recoveries that prevented accurate assessment of the width and grade of massive sulphides within those intercepts. Highlights returned by historic drilling within this area include intercepts occurring at less than 70 m below surface, including hole H-234 that intersected 1.52 metres assaying 1.3% Cu, 9.6% Pb, 18.7% Zn, 8.6 g/t Ag, 1.7 g/t Au.
BUCHANS PRE-FEASIBILITY STUDY UPDATE
The Buchans project represents one of several of Minco's advanced volcanogenic massive sulphide ("VMS") base metal projects within the Buchans area of central Newfoundland. Since the positive PEA on the Lundberg deposit in 2011, Minco has been advancing the Lundberg project towards the completion of a pre-feasibility study for a stand alone open pit base metal mine producing zinc, copper and lead concentrates.
To date the pre-feasibility work has included the completion of more in-depth metallurgical studies and upgrading of a large portion of the Lundberg deposit to the National Instrument 43-101 Indicated category. The Lundberg deposit is currently estimated to include NI 43-101 compliant Indicated resources totaling 23.4 million tonnes grading 1.41% Zn, 0.60% Pb, 0.35% Cu, 5.31 g/t Ag and 0.07 g/t Au, andInferred resources of 4.3 million tonnes averaging 1.29% Zn, 0.54% Pb, 0.27% Cu, 4.47 g/t Ag and 0.08 g/t Au using a NSR cut-off of $US15 per tonne (see Minco press release dated March 4, 2013 for more complete disclosure).
Ongoing work includes an internal analysis to determine if the Daniels Pond and Bobbys Pond deposits can positively contribute as satellite feeder mines to a central milling facility processing the larger Lundberg open pit resource.
QUALIFIED PERSON
Paul Moore, M.Sc., P.Geo., (NL), Vice President of Exploration of Buchans Minerals, a Qualified Person within the meaning of National Instrument 43-101, is supervising the 2014 drill program and has reviewed the technical contents of this release.
ABOUT MINCO PLC
Minco Plc, registered in the Republic of Ireland and listed on the AIM Market of the London Stock Exchange ("MIO"), is an exploration and development company, currently engaged in zinc-lead exploration in Canada, the United Kingdom and Ireland and is also evaluating a manganese project in New Brunswick, Canada.
The Company also has interests in zinc-silver projects in Mexico through its holding of 30 million shares (approximately 26%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-"XAG").
Minco also holds a 2% NSR royalty on the Curraghinalt gold property in Northern Ireland, currently being explored by Dalradian Resources Inc. (TSX-"DNA").
For further information, including a map of the proposed drilling, please refer to Minco's website at www.mincoplc.com or contact:
Warren MacLeod: Director, President Buchans Minerals +1 709 725 0555
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/Alan Connolly: (NOMAD) Davy +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities +44 (0) 20 7382 8415