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14 Feb 2013 13:30
MINCO PROVIDES RESULTS OF INITIAL EXPLORATION DRILLING AT THE WOODSTOCK MANAGNESE PROJECT IN NEW BRUNSWICK, CANADA
Dublin, 14 February 2013 - Minco plc (AIM - "MIO") (the "Company") announces initial drilling results for the first hole of an ongoing drilling programme at Company's newly optioned Woodstock manganese project located in New Brunswick, Canada.
The first hole of the current programme, PL-13-011, was drilled at the northwest end of a fence of previously drilled holes which now completes a central section across the Plymouth deposit on the Woodstock Property. Hole PL-13-011 returned assays averaging 11.25% Manganese over 113.85 metres core length representing a geological true width of approximately 95 metres across one of the main lobes of mineralization which comprise the Plymouth deposit. Interpretation of this section of five holes indicates that mineralization is hosted by a folded sedimentary sequence occurring as several lobes of mineralization within a synclinal fold structure. Results from hole PL-13-011 combined with the results from historic trenching and drilling along this section confirm a near surface width of mineralization over approximately 225 metres, which typically extends to vertical depths of 100 metres or more (see the cross section on the Company's website).
Commenting on the results, Terence McKillen, President & CEO of Minco stated "This is the first complete drilled section through the Plymouth deposit since the 1950's and confirms high grades and large widths of manganese mineralization. The results for this section suggest that the deposit may be amenable to open pit mining with a low stripping ratio. These initial results provide encouragement that we may attain our goal of upgrading a significant portion of the historical resource to a NI 43-101 compliant Inferred Resource required to complete a preliminary economic assessment."
ONGOING DRILLING PROGRAMME
Eight (8) holes comprising a total of approximately 1,800 metres of drilling have been completed so far in the planned fifteen (15) hole programme. The programme is expected to be completed during March 2013 and is estimated to comprise a total of 4,000 metres of drilling at the Plymouth deposit.
Minco's drilling programme is 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. Assays are expected to be released as they are received and a map and sections showing the location of the proposed holes in relation to the Plymouth deposit are available on Minco's website at http://www.minco.ie.
A table showing individual assays along with composite averages is presented below.
Hole | From (m) | To (m) | length (m) | Mn % | Fe % |
PL-13-011 | 51.65 | 165.50 | 113.85 | 11.25 | 12.53 |
51.65 | 54.65 | 3.00 | 11.27 | 14.13 | |
54.65 | 57.65 | 3.00 | 11.85 | 15.60 | |
57.65 | 61.20 | 3.55 | 7.78 | 10.91 | |
61.20 | 63.90 | 2.70 | 6.61 | 10.53 | |
63.90 | 66.90 | 3.00 | 3.16 | 5.57 | |
66.90 | 68.00 | 1.10 | 4.30 | 7.73 | |
68.00 | 71.00 | 3.00 | 14.37 | 16.09 | |
71.00 | 74.00 | 3.00 | 16.57 | 16.02 | |
74.00 | 77.00 | 3.00 | 10.38 | 20.70 | |
77.00 | 80.00 | 3.00 | 9.84 | 14.76 | |
80.00 | 83.00 | 3.00 | 5.83 | 12.21 | |
83.00 | 86.00 | 3.00 | 12.39 | 18.88 | |
86.00 | 87.40 | 1.40 | 14.17 | 15.74 | |
87.40 | 90.50 | 3.10 | 14.95 | 19.02 | |
90.50 | 93.50 | 3.00 | 11.62 | 17.42 | |
93.50 | 96.50 | 3.00 | 15.64 | 17.49 | |
96.50 | 99.50 | 3.00 | 14.29 | 20.56 | |
99.50 | 102.50 | 3.00 | 2.65 | 7.73 | |
102.50 | 105.50 | 3.00 | 6.64 | 11.16 | |
105.50 | 108.50 | 3.00 | 10.49 | 13.32 | |
108.50 | 111.50 | 3.00 | 6.40 | 13.22 | |
111.50 | 114.50 | 3.00 | 6.58 | 13.43 | |
114.50 | 117.50 | 3.00 | 10.80 | 14.48 | |
117.50 | 120.50 | 3.00 | 15.10 | 17.14 | |
120.50 | 123.50 | 3.00 | 16.03 | 20.28 | |
123.50 | 126.50 | 3.00 | 11.89 | 22.45 | |
126.50 | 129.50 | 3.00 | 13.17 | 20.00 | |
129.50 | 132.50 | 3.00 | 15.64 | 19.58 | |
132.50 | 135.50 | 3.00 | 14.40 | 20.28 | |
135.50 | 138.50 | 3.00 | 14.95 | 19.79 | |
138.50 | 141.50 | 3.00 | 12.35 | 20.91 | |
141.50 | 144.50 | 3.00 | 13.24 | 19.02 | |
144.50 | 147.50 | 3.00 | 13.24 | 18.95 | |
147.50 | 150.50 | 3.00 | 14.48 | 18.47 | |
150.50 | 153.50 | 3.00 | 11.27 | 16.01 | |
153.50 | 156.50 | 3.00 | 12.43 | 13.99 | |
156.50 | 159.50 | 3.00 | 9.91 | 10.60 | |
159.50 | 162.50 | 3.00 | 13.24 | 15.18 | |
162.50 | 165.50 | 3.00 | 7.94 | 14.20 |
Select assays from hole PL-13-011. Lengths reported are core lengths in metres. True widths are estimated to be approximately 83% of core length based on interpreted cross sections. Hole PL-13-011 was collared at UTM NAD83, Zone 19 coordinates 603,672 m East, 5,113,395 m North where it was drilled at a dip angle of 45 degrees towards azimuth 118 degrees from True North.
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 of the deposit.
During 2011, Buchans Minerals completed a drilling programme of five holes that successfully intersected manganese mineralization at the Plymouth deposit. Hole 11-010 of this initial test programme contained two intersections including an upper intercept averaging 11.27% Mn over 101.0 metres (from 10m to 111m) and a lower intercept averaging 11.67% Mn over 78.0 metres (from 153m to 231m). Other results from Hole 11-009 included an upper intercept of 8.61% Mn over 44.0 metres (from 10m to 54m) and a lower intercept of 12.51% Mn over 78.0 metres (from 69m to 147m). - See Buchans Minerals Press Release dated September 26, 2011.
MINCO OPTION AGREEMENT
In October 2012, following completion of a six-month review, Minco entered into an option agreement with Buchans Minerals Corp 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 programme, an inferred resource estimation and hydrometallurgical test work.
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
The drilling programme is being managed by Buchans Minerals Corporation 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.
QA/QC
Logging, sampling and assaying procedures are being completed by Buchans Minerals personnel as per Buchans Minerals QA/QC protocols. Drill core is being descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. Samples consist of half 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 Buchans Minerals' QAQC protocols, samples comprising the other half of the core is bagged, tagged, sealed and shipped to ALS Minerals ("ALS") in Sudbury, Ontario. Samples are typically collected using a nominal three metre core length, except where specific geologic parameters require a smaller interval be sampled.
Sample preparation was completed by ALS with each sample crushed to ≥70% passing 6 mm, a 250 g Riffle split is then pulverized to ≥85% passing 75 micron. Buchans Minerals submitted blanks (one per 20 samples), certified standards (one per 20 samples), and field duplicates (halved core sample split into two quartered samples, once every 20 samples) for preparation and assay to ensure appropriate QA/QC protocols are applied. ALS analyzed submitted samples using a ME-XRF06 (borate fusion) procedure as well as sulphur and specific gravity determinations using a Leco (S-IR08) and pyncometer (OG-GRA08b), respectively. In addition, Buchans Minerals ensures one in every 20 samples is sent for check assays at SGS Canada Inc. using a XRF-76 borate fusion XRF analytical procedure. SGS check assay results are used for additional QA/QC during resource estimation. Where indicated, estimated true widths are based on interpretation of geological cross sections and typically equate to 83% of the intercepted core length.
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$15 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
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