Minco PLC Regulatory News (MIO)

24 Jan 2007 09:28

Minco PLC24 January 2007 Update on Pallas Green Exploration Programme London, 24 January 2007 - Minco plc (MIO), the AIM quoted precious and basemetals exploration and development company today provides an update of theprogress at its Pallas Green exploration joint-venture in Ireland. Highlights • Drilling has recommenced at Pallas Green with two rigs • A third rig will be added by month end • Recently completed hole intersected 32.28m zone of mineralisation • Airborne geophysical survey planned • Exploration confirms similarities with the Lisheen/Galmoy trend Minco is pleased to announce that drilling has recommenced at Pallas Green. Twodrills are operating at present and a third rig will be added by the end of themonth. One drill is currently operating at the Tobermalug prospect drilling hole636-54 which is located 200 metres south of hole 636-49 - previously reportedintersection of 11.25 metres averaging 11.35% zinc and 1.91% lead. NEW ASSAY RESULTS FROM TOBERMALUG PROSPECT Assay results for hole 636-53, completed at the end of 2006 and located mid-waybetween holes 636-49 and 636-54 have been received. This hole intersectedbreccia-hosted sulphide mineralization over an interval of 32.28 metres (from344.47 to 376.75 metres depth) averaging 2.0% zinc and 0.38% lead. Included inthis intersection, towards the base, is a section of 1.35 metres (369.25-370.6metres) averaging 12.78% zinc and 2.33%lead. The mineralization at Tobermalug is hosted by thick, black matrix breccia unitsand has been traced by wide spaced drilling over a length of one kilometre.Within this system the average width of mineralised breccias is 18 metres. AtTobermalug the tenor of mineralization appears to increase towards the south andMinco believes that the mineralization encountered to date could lie within thenorthern periphery of a much larger lens of mineralization localised by a majoreast-northeast trending fault believed to lie south of current drilling. This isthe same structural pattern present at both Lisheen and Galmoy and it isbelieved that the geology in the Caherconlish area is analogous to the geologyat these mine sites. AIRBORNE GEOPHYSICAL SURVEY An airborne Magnetometer/EM survey is planned for February 2007 to cover the 10square kilometre Caherconlish area, where drilling has partially outlined threemassive sulphide lenses (at Tobermalug, Caherconlish South and Srahane West).Minco believes these could be part of a cluster of massive sulphide lensesanalogous to those currently being mined at Lisheen and Galmoy. Exploration ofthis cluster of sulphide lenses is still at a very early stage. The three lensesof massive sulphide, at depths of 210 to 390 metres below surface, have beenonly partially explored by wide spaced drilling. REGIONAL EXPLORATION Potential for the discovery of additional clusters of massive sulphide lenseselsewhere along the Pallas Green alteration trend is considered excellent, andexploration drilling within the alteration trend outside of the Caherconlisharea is also continuing (representing about 30% of the 2007 exploration budgetof €1.2 million). A second drill is currently drilling an unexplored area within the alterationtrend to the northwest of Caherconlish area. A third drill, to be mobilized bymonth end, will explore to the east-southeast of Caherconlish, betweenCaherconlish and Castlegarde. In this area, the few widely spaced drill holescompleted to date have intersected alteration and extensive black matrix brecciasections containing disseminated to massive pyrite and lesser zinc and leadsulphides. SIMILARITY TO LISHEEN TREND Along both the Lisheen and Pallas Green alteration trends, massive sulphidemineralization replaces 'black matrix breccias' within the basal part of theWaulsortian reef limestone. At both Lisheen and Galmoy, it is possible that thevolume of available breccia might have proven a limiting factor to oredevelopment. However, within the Pallas Green alteration trend the distributionof potential host breccia is considerably more extensive, both laterally andvertically, than along the Lisheen trend. Wherever black matrix breccias havebeen intersected within the Pallas Green trend by drilling they are partiallyreplaced by disseminated to massive pyrite and lesser zinc and lead sulphides.Minco considers this could be indicative of a greater potential for high grademassive sulphide development within the Pallas Green alteration trend than theLisheen trend. COMMENT Roger Turner, Executive Chairman of Minco commenting on the Pallas Greenexploration drilling, said: "Minco is extremely encouraged by the results fromongoing exploration of the Pallas Green project (23.6% Minco - 76.4% Xstrata)which is located along the south western boundary of the Irish Midland Orefield- a major zinc producing area since the mid-1960's which currently hosts threeproducing mines at Navan, Lisheen and Galmoy. Our exploration is focused along the Pallas Green alteration trend,approximately 25km in length by 2km in width. The Pallas Green trend is believedanalogous to the Lisheen alteration trend which is host to the Lisheen andGalmoy ore bodies. Both trends follow structurally localised boundaries to theMidland Orefield. The massive sulphide mineralization has the same geologicalassociations along both the Lisheen and Pallas Green trends. However, comparedto the Lisheen trend, which is at an advanced stage of exploration, explorationof the Pallas Green trend is still at an early stage with approximately 70percent remaining unexplored and the remaining 30 percent only partiallyexplored by widely spaced drill holes. 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 an 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. 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 +44 (0)20 7397 8155 Terence McKillen: Director of Exploration & Business Development +1 416 362 8243/6686 Simon Beardsmore: Commercial Manager +44 (0)20 7397 8159 Chris Rollason: (UK NOMAD) Collins Stewart +44 (0)20 7523 8350 Nick Bias: (UK IR & PR) BuckBias +44 (0)7887 920 530 Tom McCormack (Ireland PR) ConneXions +353 (0)1 230 3015 This information is provided by RNS The company news service from the London Stock Exchange