9 Jul 2009 09:51
Xtierra Reports Bilbao Feasibility Underway
Dublin, 9 July, 2009 - Minco Plc (AIM-"MIO") is pleased to announce that its TSXV quoted subsidiary, Xtierra Inc., yesterday announced an update on its Bilbao project, Mexico. At the Annual Meeting of Xtierra, held in Toronto on July 7, shareholders were told that the Bilbao Feasibility Study is on schedule and on budget. Phase I is expected to be completed by December 2009 and a final production decision is anticipated following the completion of the second phase of the Feasibility Study in May 2010.
In other news, Xtierra made a discounted payment of US$450,000 to Shoshone Silver Mining Corp. pursuant to the Bilbao purchase agreement rather than the full payment of US$500,000 due August 2009. No further payments are due until at least 2014.
Metallurgical Testwork
The University of San Luis Potosi has been contracted to conduct analysis and characterization of the oxide resources. This will be followed by further pre-concentration studies using a high intensity magnetic separation process which should be completed by mid-August 2009. This test work should indicate the optimum grind size of the feed and metal recoveries expected in the pre-concentrate.
The pre-concentration test work will then be followed by flotation and acid leaching for the recovery of silver, zinc, lead and copper metals. Test work on the Transition (mixed oxide/sulphide ores) and the sulphide ores is scheduled to begin in August, following which Xtierra will have the information to decide an optimum design process and anticipated metal recoveries. The final report for such metallurgical test work is expected by mid-December 2009.
Engineering /Geology /Geotechnical
A Block Model of the resource is being generated internally and will be followed by an independent review based on the previously announced NI 43-101 resource estimate. This process should be completed by mid-July. The oxide portion of the deposit has been divided into four different areas around which several alternatives for the open pit and ramp design have been proposed. Once the block model is completed, pit designs will be optimized. A geotechnical survey on the historical underground and open hole workings, together with an evaluation and analysis of all drill core was recently completed. Further laboratory test work and calculations are in progress. These activities are approximately 90% completed and a final report is due by the end of July 2009. A preliminary assessment indicates that ground conditions are good for both underground and open pit excavations and confirm the validity of original estimated pit slope angles of 55°.
Environmental /Hydrology
Initial environmental baseline studies were first implemented in 2007 and are continuing. An initial study of the regional and local hydrological setting indicates the presence of adequate volumes of ground water as the Bilbao project is located at the centre of three aquifers. The hydrological study is scheduled to be completed by the end of August 2009.
Infrastructure Design /Electrical
The Electrical power supply design report is expected by the end of July. A preliminary assessment indicates that power can be distributed to the project site via a new 2 km extension from the main electrical grid. Cost estimates for open pit and underground mining are being determined based on benchmark costs for other local operations and will be completed in August 2009.
Comment by CEO
Commenting on the Bilbao Feasibility Study, Xtierra's President & CEO, Terence McKillen said, "The metallurgical test work on the Oxide and Transition ores is a key factor in the calculation of capital and operating costs as it will determine if the oxide and particularly, the deeper sulphide resources, will be extracted by open pit mining methods."
Qualified Person
The above information has been reviewed and verified by Mr. Terence N McKillen, B.A. (MOD), M.A., M.Sc., P.Geo, Chief Executive Officer. Mr. McKillen is the Qualified 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 40 years of exploration experience in Ireland and internationally.
About Minco
Minco PLC is an AIM quoted precious and base metals exploration and development company engaged in zinc exploration on the Pallas Green property in Ireland in a joint venture with Xstrata Zinc and investments in zinc-silver projects in Mexico through its 60% shareholding in Xtierra Inc. listed on the TSX Venture Exchange (Toronto) under the symbol "XAG".
| 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 |
| John Frain / Fergal Meegan: (NOMAD) Davy | +353 (0)1 6796363 |