Minco PLC Regulatory News (MIO)

22 Jan 2008 07:00

Minco PLC22 January 2008 Minco plc SIX MILLION EURO BUDGET PLANNED FOR PALLAS GREEN IN 2008 London, 22 January 2008 - Minco plc (MIO), the London AIM quoted precious andbase metals exploration and development company is pleased to report that it hasreached agreement with joint venture partner, Xstrata Zinc, for a €6 millionexploration budget for the Pallas Green project in Co. Limerick during 2008, ofwhich Minco's share will be approximately €1.4 million. 2008 Programme The proposed programme for 2008 will comprise approximately 50,000 metres ofdiamond drilling, using up to 15 drill rigs which will focus on the immediatearea surrounding the Tobermalug, Caherconlish South and Srahane West prospectsas well as more regional drilling in other areas of mineralized potential.Drilling during the first quarter of 2008 will see the number of rigsincrementally stepping up from 5 to 7. At Tobermalug, the immediate focus in 2008 is to continue to trace themineralization to the south, where it remains open. Typically, in Irishzinc-lead deposits, the highest grades and width are associated with thesouthern margins of the deposit, spatially related to major, bounding faultstructures. Such fault structures are believed to lie south of the area testedto date. Current drilling with 5 rigs is continuing with four of the holestesting wider step outs to the south of the Tobermalug Prospect. One of theseholes, 750 metres to the south, is currently drilling well-developed blackmatrix breccias with associated semi-massive to massive pyrite above the targethorizon. Tobermalug Prospect The Tobermalug prospect comprises a single, partially explored, north-southoriented zone, or envelope, of pyrite-sphalerite-galena mineralization hostedwithin a complex of breccias similar to those hosting the Lisheen and Galmoyorebodies to the northeast. Based on drilling to date, the core zone ofmineralization has potential to host 6.5 million tonnes averaging 8.6% zinc and1.23% lead (refer release dated January xx). Unbroken continuity of themineralized envelope has been demonstrated for a distance of approximately 1.7kilometres from north to south. The mineralized envelope is approximately 350metres in width over the northern half of the prospect, increasing to 750 metresin width over the less well explored southern half, and importantly, remainsopen to the south. The mineralized envelope is presently defined by 28 widely spaced drill holes at100m to 200m separation to the north and increasing up to 300m separation to thesouth. Assays have been received for 27 of these holes. A higher grade 'corezone', covering an area of approximately 0.3 km2, and flanked east and west byperipheral low grade mineralization is present throughout the length of theprospect. Drilling over the past two months has focused on determining theeast-west limits to the mineralized zone and of the eight holes reported above,five (636-66, 636-68, 636-71, 636-72 and 2529-22) are interpreted as lyingwithin the peripheral area of the mineralized zone. Sixteen of the drill holeshave intersected the 'core zone'. These are tabulated below. Hole Hole inclination From To m Corrected m Zn% Pb% (approx)636-20 vertical 313.50 345.00 26.15 26.15 4.99 0.63636-22 vertical 313.50 343.30 29.80 29.80 2.29 0.25636-35 vertical 352.15 364.05 11.90 11.90 3.03 0.34636-49 vertical 339.83 357.15 17.52 17.52 7.51 1.26636-58 75degrees 362.10 385.65 23.55 21.00 3.70 0.75636-53 vertical 344.47 376.75 32.28 32.28 2.00 0.38636-55 vertical 360.25 370.25 10.00 10.00 9.39 1.59636-65 65degrees 386.30 400.00 13.70 13.00 3.26 0.32636-57 55degrees 411.10 459.40 48.30 37.50 4.34 0.3636-59 80degrees 337.65 365.40 27.80 25.00 3.18 0.59636-64 60degrees 439.54 458.75 19.410 14.50 3.63 0.53and 60degrees 482.50 492.45 9.95 7.00 3.11 0.49636-70* 58degrees 388.45 392.754 4.30 3.70 3.38 0.45and 58degrees 452.25 469.70 17.45 15.00 2.88 0.462529-18 vertical 367.50 384.30 16.80 16.80 5.32 0.522529-20* vertical 382.45 390.6 8.15 8.15 3.64 0.932529-21* vertical 395.00 408.70 10.40 10.40 3.08 0.892529-22* vertical 402.85 408.15 5.30 5.30 2.27 0.80 'Core Zone' intersections (those marked * are previously unreleased data) The "core zone' intersections tabulated above average 18.5m in width and 3.86percent zinc and 0.56 percent lead. Within the 'core zone', base metal values cluster to produce a series of highergrade intersections. Hole Hole inclination From To m Zn% Pb%636-20 vertical 319.85 336.90 17.05 6.85 0.92636-22 vertical 313.50 315.40 1.90 3.34 0.10and vertical 332.95 337.45 4.50 7.86 0.97636-35 vertical 355.75 358.05 2.30 7.67 1.38636-49 vertical 343.74 351.00 7.26 14.64 2.53636-58 75degrees 363.40 366.00 2.60 11.37 4.06and 75degrees 377.40 379.55 2.15 10.55 1.15636-53 vertical 369.25 372.00 2.75 7.94 1.23636-55 vertical 360.65 365.40 4.75 16.32 2.67636-65* 65degrees 390.75 392.15 1.40 8.67 0.87636-57 55degrees 436.20 450.75 14.55 8.99 0.67and 55degrees 456.50 459.00 2.50 7.60 0.22636-59 80degrees 343.30 350.00 6.70 8.63 1.58636-64 60degrees 440.90 443.60 2.70 17.47 3.03and 60degrees 487.30 490.54 3.24 6.71 1.22636-70* 58degrees 389.60 391.40 1.80 6.51 0.78and 58degrees 459.65 461.65 2.00 6.74 2.022529-18 vertical 367.50 370.90 3.40 7.98 0.39and vertical 372.75 378.90 6.15 6.98 0.64and vertical 382.20 384.30 2.10 4.28 0.722529-20* vertical 385.30 390.60 5.30 4.35 1.112529-21* vertical 400.25 402.50 2.25 7.05 1.032529-22* vertical 405.00 406.00 1.00 9.22 3.74 Higher grade intersections within the 'Core Zone' (those marked * are previouslyunreleased data) The higher grade intersections tabulated above average 4.4m in width and 8.72percent zinc and 1.29 percent lead. The current 100m to 300m drill hole spacingis insufficient to demonstrate lateral, hole to hole, continuity of these highergrade intersections. In similar mineralization elsewhere in Ireland, significantinfill drilling has been necessary to demonstrate lateral continuity withsufficient confidence to produce mineable reserves. Chairman's Comment Commenting on the announcement, Roger Turner, Executive Chairman said: "We arevery pleased that Xstrata Zinc continues to recognize the extremely importantpotential of the Pallas Green project and has agreed to commit very substantialresources to the exploration programme in 2008. Results of drilling during thepast year have demonstrated the very extensive nature of the mineralization atthe Tobermalug Prospect where we anticipate that on-going drilling to the southwill encounter the expected development of greater thicknesses and higher gradesof mineralization commonly associated with the main controlling structures. Wealso anticipate that greater focus on the Caherconlish South, Srahane West andother highly favourable mineralized target areas will lead to additionaldiscoveries in 2008." Qualified Person The above information has been reviewed and verified by Mr. Roger Turner, CEOand Chairman of Minco, for the purposes of the Guidance Note for Mining, Oil andGas Companies issued by the London Stock Exchange in March 2006. Mr. Turner,with 40 years of mining engineering, management and consulting experience,graduated as a mining engineer from the Camborne School of Mines, has a M.Sc.degree in Economic Geology from Leicester University and is a member in goodstanding with the Institute of Materials, Minerals and Mining and a UK CharteredEngineer. Resignation of Director Mr. Ian Smith has advised the Company of his intent to step down as a directoreffective immediately in order to more actively pursue other business interestswhich may have conflicted with the interests of Minco or Orca Minerals Limited. 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. For further information, www.minco.ie or contact: Roger Turner: Executive Chairman & CEO +44 (0)20 7397 8155Terence McKillen: Director of Exploration & Business Development +1 416 362 6686Danesh Varma, CFO & Company Secretary +44 (0)20 7397 8154John Frain / Fergal Meegan: (NOMAD) Davy + 353 (0)1 6796363Tom McCormack (Ireland PR) ConneXions +353 (0)1 230 3015 This information is provided by RNS The company news service from the London Stock Exchange