30 Aug 2013 07:00
MINCO REPORTS INTERIM RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2013
Dublin, 30 August, 2013 Minco PLC (AIM - "MIO") (the "Company" or "Minco") the AIM quoted exploration and development company is pleased to report its interim results for the six month period ended 30 June 2013.
In the first six months of 2013, Minco has been drilling for zinc-lead mineralization at the North Pennines in England with encouraging results. Minco has also completed a drilling programme on its Woodstock manganese project in New Brunswick, and advance the pre-feasibility study on the Lundberg deposit in Newfoundland. Minco also entered into an agreement to acquire Buchans Minerals Corporation, a Canadian base metals exploration and development company.
FINANCIAL RESULTS
Minco recorded a consolidated loss for the six months ended 30 June 2013 of US$906,000, including a write down in the fair value of financial asset of US$394,000, compared to a profit of US$106,000 in the same period in 2012. General and administrative expenses for the six months of 2013 were US$776,000 compared to US$326,000 in the first six months of 2012. The conversion of some assets and liabilities to US dollars resulted in a foreign exchange gain of $221,000 for the six months ended 30 June 2013 compared to a gain of US$521,000 for the same period in 2012.
At 30 June 2013, the Company had cash and cash equivalents of US$12.7 million compared to US$15.4 million at December 31, 2012, with the reduction primarily as a result of the ongoing prefeasibility study at Lundberg, the drilling programme and resource calculation on Woodstock and the drilling at the Pennines. Total assets decreased from US$24.1 million at 31 December, 2012 to US$23.0 million at 30 June 2013.
EXPLORING FOR ZINC-LEAD IN NORTH PENNINE OREFIELD, ENGLAND
In November, 2012, Minco commenced a new exploration initiative in the North Pennine Orefield located in the northern English counties of Cumbria, Northumberland and Durham, an opportunity Minco has been developing for a number of years and which we believe presents a very exciting target for the discovery of a new large zinc-lead deposit. Minco's initial two-phase exploration programme is focused on a 10 kilometer square area to the northeast of the historic mining town of Nenthead.
Phase I consisted of four exploration holes which were sited on the basis of historic mining records to test unexplored stratigraphic horizons beneath the Great Limestone for stratiform, replacement-style zinc and lead deposits. In Minco's third hole, Hole CA-003, an intersection of 5.75m at 3.5% combined lead and zinc was cut at the historic mining level approximately 100 metres from any recorded historical mine development.
Minco is now drilling the first part of its Phase II programme which consists of 750 metres of exploration drilling, of which 349 metres have been completed in two holes (CA-005 and CA-006). Hole CA-006 intersected encouraging zinc-lead mineralisation for which the assay results have not yet been received. Hole CA-005 intersected sparsely disseminated weak mineralisation for which the assay results are also pending. Minco plans to provide an exploration update upon the receipt of the assay results for holes CA-005 and CA-006.
ACQUISITION OF BUCHANS MINERALS CORPORATION
On 16 July, 2013 Minco completed the acquisition of Buchans Minerals by acquiring all of the shares of Buchans which it did not already own to create a premier base metals exploration and development company with advanced projects in established mining jurisdictions in eastern Canada.
The acquisition of Buchans consolidates Minco's 100% ownership of Buchans' advanced exploration assets, being the Lundberg zinc-lead project in central Newfoundland and the Woodstock manganese project in New Brunswick, and is a major step towards achieving Minco's strategy of creating a strong exploration and development company with advanced projects in established mining jurisdictions in eastern Canada, in addition to Minco's existing exploration projects in the UK and Ireland. A total of 124,642,196 new Minco shares were issued to Buchans shareholders.
LUNDBERG DEPOSIT, NEWFOUNDLAND, CANADA
In 2012, Minco completed a 58 hole drilling programme, which totaled 8,189 metres of drilling, and in March 2013, Minco announced a new resource estimate that successfully upgraded the categorization of the resource, as well as increased the overall tonnage of the Lundberg deposit.
Completion of this new indicated resource paves the way for the design of an open pit mining plan and more detailed metallurgical studies, leading towards the calculation of a mineable reserve and completion of a pre-feasibility study that will further assess the viability of building a mine and moving the Lundberg project into production. Key metallurgical test work in support of the pre-feasibility study is ongoing and should be completed by the end of 2013.
ACQUISITION OF BOBBYS POND PROPERTY, NEWFOUNDLAND, CANADA
On 29 July 2013, Minco completed the acquisition, through its wholly owned subsidiary, Centrerock Mining Limited, of a 75% interest in Bobbys Pond Property from Mountain Lake Minerals Inc. for a cash payment of CDN$450,000 and a 1% net smelter return royalty. On 29 July 2013, Mountain Lake Minerals Inc. subscribed to 3,500,000 new ordinary shares in Minco at a subscription price of £0.04 per share for total gross proceeds of £140,000.
WOODSTOCK DEPOSIT, NEWFOUNDLAND, CANADA
Following the completion early in 2013 of a 16-hole, 4,082 metre drilling programme, in May 2013, Minco announced a new inferred resource of 43.7 million tonnes, grading 9.98% manganese for the Plymouth manganese deposit located on the Woodstock Project in New Brunswick. The Company has conducted new metallurgical tests which indicate that the Woodstock manganese mineralisation is amenable to industry accepted pre-concentration methods. Minco has commissioned further metallurgical testwork and is developing a conceptual mine plan for use in a preliminary economic assessment of the Woodstock project.
XTIERRA INC. BILBAO DEPOSIT, MEXICO
Minco holds 30 million shares, representing a 29% interest, in Xtierra Inc. a company listed on the TSX Venture Exchange.
Xtierra's principle project is the Bilbao Project in Mexico where six infill holes were drilled in June 2013, completing an additional drilling campaign in the southern part of the silver-zinc-lead-copper project. All six drill-holes, encountered thick intersections of good grade mineralisation with notable high grade silver intersections throughout.
APPOINTMENT OF NEW DIRECTORS
Minco announced the appointment of two additional directors, following the completion of the acquisition of Buchans Minerals Corporation. The two new appointees, Warren MacLeod and Donald (Dennis) MacLeod, were previously directors of Buchans Minerals Corporation and have extensive experience in various aspects of the mining industry, including mine development and mining operations, metallurgy, corporate development and project finance.
Minco is delighted that Warren MacLeod and Dennis MacLeod have agreed to act as directors of the Company and will benefit from their extensive mining industry experience and specifically their knowledge of the Buchans mineral properties.
MINCO'S OUTLOOK 2013
Minco is advancing the second phase of exploration for zinc in the Pennines and plans to drill a further four additional exploration holes in Cumbria and Northumberland.
The Lundberg lead/zinc project is at pre-feasibility study stage and the Woodstock manganese project is at preliminary economic assessment.
Minco also holds a 2% net smelter royalty in the Curraghinalt gold deposit in Co. Tyrone, Northern Ireland, currently being explored by Dalradian Gold Inc.
Meanwhile, Minco remains in a healthy financial position and we continue to review a number of other investment and acquisition opportunities.
ABOUT MINCO
Minco Plc, registered in the Republic of Ireland and listed on the AIM of the London Stock Exchange ("MIO"), is premier base metals exploration and development company with advanced projects in established mining jurisdictions in eastern Canada. The Company is also engaged in zinc-lead exploration in the United Kingdom and Ireland. Minco holds 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").
On 16 July 2013, Minco acquired Buchans Minerals Corporation which consolidated Minco's ownership of Buchans Minerals advanced exploration assets, being the Lundberg Project in central Newfoundland and the Woodstock Manganese Project in New Brunswick. Minco owns 100% of the Lundberg base metal project and the Woodstock manganese project, in addition to Minco's existing exploration projects in the UK and Ireland.
On 30 July 2013, Minco acquired the Bobbys Pond Property which hosts a zinc-copper-lead deposit located adjacent to Minco's 100% owned Buchans properties in central Newfoundland. The Bobbys Pond Property is located within 17 kilometres of Minco's Buchans project and 9 kilometers from Minco's Daniel's Pond property.
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 has US$12.7 million in cash and cash equivalents and is also evaluating a number of other investment opportunities in the minerals industry in North America and Europe.
There are 478,142,180 shares of Minco issued and outstanding.
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 Securities, London +44 (0)20 7382 8387
Copies of this announcement will be posted on the Company's website at www.minco.ie and will be available for inspection at the Company's registered office at 27 Hatch Street Lower, Dublin 2, Ireland.
The condensed consolidated financial results for the half year ended 30 June 2013 can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/8089M_-2013-8-29.pdf