Minco PLC Regulatory News (MIO)

5 Oct 2006 07:01

Minco PLC05 October 2006 Minco Plc Press Release PALLAS GREEN PROJECT, IRELAND • Additional zinc-lead intersections • 5 drill rigs continue to evaluate the project • Mineralization at the Caherconlish, Tobermalug and Srahane prospects remains open in more than one direction • Exploration is focussed on the Pallas Green trend - a geological structure Minco considers analogous to the Rathdowney trend which hosts the Lisheen and Galmoy deposits Commenting on the drill results, Terence McKillen, Minco's Director ofExploration and Business Development said: "We are extremely pleased that theresults of our summer in-fill drill programme continue to indicate the verysignificant potential of the Caherconlish area where we are focussed onevaluating three distinct but related zones of zinc and lead mineralisation. Allof the prospects remain open in a number of directions and we believe that twoof them may be spatially associated with the same northwest-trending fault. Eachof the prospects demonstrates significant high grade zinc to be present inassociation with lesser values of lead and silver, together with extensive,massive to semi-massive pyrite mineralisation. The development of veryextensive areas of alteration features such as the pyrite mineralisation and theblack matrix breccias, which are also closely associated with the Lisheen andGalmoy orebodies in the Rathdowney Trend, confirm that the Pallas Green Trendremains prospective for the discovery of more than one deposit." LONDON: October 5, 2006: AIM quoted precious and base metals explorer anddeveloper Minco plc ("MIO") is pleased to announce additional drill results fromits Pallas Green Joint Venture, Co. Limerick, Ireland. Drilling at 100 metre spacing continues to expand three areas of high grade zincsulphide mineralization at Caherconlish South, Srahane West and Tobermalug,respectively 1.5km east, 4.5km northwest and 1.5km northeast of the town ofCaherconlish. Drilling is ongoing, with five drills currently on the property. Exploration is currently focused on a 5 square kilometre, triangular-shaped areato the northwest of Caherconlish, County Limerick. Caherconlish South An area of mineralisation measuring approximately 250m by 150m has been outlinedby seven, contiguous, 100 metre-spaced holes. Hole No. From To Thickness (m) Zn (%) Pb (%)MN 2529-13 354.5 357.5 3.0 6.21 0.96 361.7 364.4 2.7 9.34 0.45MN 252914 363.2 365.7 2.5 14.96 1.45 PREVIOUSLY REPORTED:MN-2529-3 332.75 334.27 1.52 4.47 0.98MN-2529-4 357.15 363.6 6.45 12.8 3.8MN-2529-5 366.95 368.4 1.45 5.39 1.18MN-2529-5 385.7 388.4 2.7 9.78 0.02MN-2529-7 352.35 355.9 3.55 9.35 0.39 PERIPHERAL INTERSECTIONSMN-2529-6 361.2 362.05 0.85 1.81 0.38MN-2529-8 351.4 355.8 4.4 3.9 0.34 Table of drill results for Caherconlish South The Caherconlish South mineralisation remains open to the northwest andsoutheast. Two drills are continuing exploration to the northwest. The nearesthole to this cluster, 2529-3, 250m to the north, intersected 1.51m averaging4.47%Zn and 0.99% Pb. Beyond this, hole 636-16 is located approximately 800m tothe northeast and intersected extensively alteration with pyrite and traces ofzinc mineralisation. Hole 636-26 located approximately 900m to the northwestwas also extensively altered and mineralised, including 1.5m averaging 3.71%Znand 0.15%Pb, and hole 2529-9 located approximately 550m to the southeast wasunmineralised. Srahane West Srahane West lies 3.7km northwest of Caherconlish South and it is possible thatboth are spatially associated with a major northwest trending fault. In thevicinity of the previously reported high grade intersection in drillhole 636-32at Srahane West, 100m spaced step-out drilling is outlining a second area ofhigh grade mineralization, defined by four holes in an area measuringapproximately 200m by 150m, which remains open to the northwest, southeast andto the south. Drilling has demonstrated extensive massive to semi-massivepyrite mineralisation peripheral to the zinc mineralisation. A recent geophysical survey (mise a la masse) has located a strong anomalyimmediately to the south of the current drilling. This geophysical anomaly willbe drilled in October. Hole No. From To Thickness (m) Zn (%) Pb (%)MN-636-33 208.9 211.1 2.2 4.08 0.07MN-636-36** 210.80 212.15 1.35 8.24 0.03MN-636-45 238.25 238.9 0.65 14.88 2.86 242.2 243.4 1.2 7.65 1.58MN 636-47 Awaiting assays PREVIOUSLY REPORTED ;MN-636-32 266.6 271.8 5.2 21.8 2.73 PERIPHERAL HOLESMN-636-34 unmineralisedMN-636-37 massive to semi-massive pyriteMN-636-38 massive to semi-massive pyriteMN-636-39 massive to semi-massive pyriteMN-636-42 massive pyrite with minor ZnS Table of results for Srahane West drilling (**636-36 intersected a steeply dipping fault zone from within which 25cm ofmassive, banded sphalerite mineralization was recovered) Three isolated drill holes have explored the ground between the Srahane West andCaherconlish South prospects. All have intersected extensive alteration andmineralisation. Six hundred metres to the southeast of Srahane West, drillhole636-30 intersected 2.3m averaging 1.45%Zn and 0.30%Pb. One and one-halfkilometres to the southeast of Srahane West and 2.2km northwest of CaherconlishSouth, drillhole 636-28 intersected 0.65m averaging 5.21%Zn and 0.13%Pb and0.95m averaging 2,53%Zn and 0.24%Pb. Drillhole 636-26, located midway betweendrillhole 636-28 and the Caherconlish South prospect, intersected 1.5m averaging3.71%Zn and 0.15%Pb. Tobermalug The Tobermalug prospect is located 1.5km northeast of the town of Caherconlish,and comprises an area of zinc-lead mineralization measuring approximately 300mby 150m, which has been outlined by four, 100m spaced, contiguous drill holes. Hole No. From To Thickness (m) Zn (%) Pb (%)MN 636-35 355.75 358.05 2.3 7.67 1.38or 355.75 364.05 8.3 3.71 0.42MN 636-40 342.65 344.15 1.5 3.83 0.19 375.2 377.55 2.35 3.6 0.09 PREVIOUSLY REPORTEDMN-636-20 319.85 343.95 24.1 5.39 0.68OR 10.55 9.2 1.22MN-636-22 313.5 315.4 1.9 3.33 0.1MN-636-22 328.75 329.85 1.1 6.16 0.47MN-636-22 332.95 338.85 5.9 6.93 0.89 PERIPHERAL HOLESMN-636-10 236.97 238.31 1.34 6.47 0.4MN-636-13 262.4 263.06 0.66 4.46 0.03MN-636-21 320.7 323 2.3 1.01 0.02 Table of results for Tobermalug drilling (Caherconlish North) Three drill holes are in progress 100m to the south, southeast and west ofTobermalug, where the mineralisation remains open. A major east-northeasttrending fault is believed to lie approximately 1 kilometre to the southeast ofthe Tobermalug area. The area between Tobermalug and this fault remainsunexplored except for a single, isolated hole, drillhole 636-24 which collared700m to the southeast, and intersected 1.05m averaging 11.27%Zn and 0.82%Pb and0.95m averaging 2.09%Zn and 0.08%Pb. The ground between the three Caherconlish prospects has been explored by a fewwidely spaced drill holes, 500m to 1.5 km apart. All of these holes intersectedextensive alteration and sulphide mineralisation. The entire area northwest ofCaherconlish is believed to be highly prospective. Regional Potential The Pallas Green project comprises nine prospecting licences located innortheast county Limerick and southwest County Tipperary. Exploration isfocused on the Pallas Green Alteration Trend, a structurally defined zone ofhydrothermal alteration and mineralization 2 to 3 kilometres in width, which hasbeen demonstrated over a strike length of more than 20 kilometres. Thisalteration trend is considered analogous to the Rathdowney Trend which hosts themassive sulphide lenses which make up the Lisheen and Galmoy orebodies.Approximately 70% of the Pallas Green Trend remains unexplored by drilling, andof the 30% explored by drilling to date, most has been by widely spaced drillholes (500m to 1 km spacing). All have intersected alteration and, with fewexceptions, significant sulphide mineralisation, including zinc and lead basemetal mineralisation. The entire 40 to 60 square kilometres covered by thealteration trend is considered a prospective target. Minco (23.6%) and jointventure partner Falconbridge Limited, now a subsidiary of Xstrata Plc (76.4%),are completing a 2006 exploration budget of €1,060,000 (Minco's share €250,000). Qualified Person Mr. David Blaney, P.Geo. is the Qualified Person responsible for overseeing theday to day operations of the Pallas Green joint venture. He is a graduate inGeology from Queen's University, Belfast and has over 19 years experience. Mr.Blaney has personally checked all of the results. 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. For further information, www.minco.ie or contact: Terence McKillen, Director of Exploration & Business +1 416 362 8243 / +1 416 362 6686DevelopmentSimon 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