Metminco Regulatory News (MNC)

OPERATIONS

INTRODUCTION

With the completion of the Company's Phase 4a drilling program at the Los CalatosProject, Metminco Limited ("Metminco" or the "Company") commissioned SRK Consulting, Chile S.A. ("SRK") to model, and calculate, an interim mineral resource estimate for its 100% owned copper - molybdenum project in southern Peru.

Diamond drilling at the Vallecillo Project was completed in January 2012, and all related assay results were received by the end of the quarter. The Company will complete a 3D geological model of the La Colorada deposit prior to undertaking a resource estimation.

During the quarter, an access agreement was concluded with the landowner at the CamaronProject, and construction of the required roads and drill pads has commenced in support of the planned drilling program.

LOS CALATOS PROJECT

Phase 4a drilling results

With the exception of drill hole CD-61, which returned the results as summarised in Table 2 below, all of the drill holes in Table 1 (Appendix 1) have been included in the interim resource estimate.

Table 2: Significant Intersections - Phase 4 drilling

Interim resource estimate

The mineral resource statement for the Los Calatos copper-molybdenum deposit has been reported at a 0.2% Cu cut-off grade, and categorised into Indicated and Inferred Mineral Resources in accordance with the JORC standards for Reporting Mineral Resources and Mineral Reserves (see Table 3 below).

____________________

1Mineralised intercepts

Table 3: Mineral Resource Statement for the Los Calatos Copper-Molybdenum Project, Arequipa, Peru, SRK Consulting (Chile) S.A., April 19, 2012.

Note: Mineral Resource reported at a 0.2% Cu cut-off

Further, and based on Table 3, the contained metal by resource category is summarised in Table 4 below.

Table 4: Summary of metal content by resource category.

Note: Rounding-off of figures may result in minor computational discrepancies, where this happens, it is not deemed significant

Appendix 1 provides more detailed information on the resource, including a grade-tonnage profile, a graphic of the block model, a plan showing Cu (%) x thickness (metre) contours, and a section through drill hole CD-61 showing the distribution of copper mineralisation. Also contained in Appendix 1 is a comparison between key aspects of the July 2010 and April 2012 Mineral Resource statements.

Review of results

By comparison to the July 2010 Mineral Resource estimate, the April 2012 Mineral Resource estimate has increased by 150% from 926 million tonnes to 2.32 billion tonnes at an average cut-off grade of 0.2% Cu, confirming the Los Calatos discovery to be one of the world's largest undeveloped porphyry hosted copper-molybdenum deposits.

Total contained metal is estimated at 9.4 million tonnes of copper and 0.50 million tonnes of molybdenum.

The higher confidence Indicated Mineral Resource category has grown eight-fold to a total of 885 million tonnes containing 3.7 million tonnes of copper and 0.24 million tonnes of molybdenum.

The massive increase in the projects' size and scale brings Los Calatos inline with a number of globally significant copper deposits likely to form the basis of the next generation of global copper producers.

Proposed work program

The Phase 4b drilling program, which includes an additional 70,000 metres of infill drilling, is currently underway. The program, which is focused primarily on upgrading the current resource categories, is to be completed by the calendar year-end. Eight drilling rigs are presently operating in the field.

A further Mineral Resource estimate, reported in accordance with the JORC Code (2004), will be undertaken at the end of the year, on completion of the Phase 4b drilling program. This resource update will be followed by the commissioning of a pre-feasibility study in early 2013.

An internal mining study has been initiated to identify the main requirements of the pre-feasibility study. This will address aspects such as the planned seawater pipeline from the coast to the site, access to the regional power grid, quantification of the metallurgical testwork required to evaluate the use of sea water for flotation purposes (and to refine recoveries), and the assessment of a variety of mining options.

MOLLACAS PROJECT

Following the completion of the recent drilling program at Mollacas, geological modelsfor the leached, oxide, secondary sulphide, transition and primary mineralisation zones, as well as various alteration types, were constructed and submitted to SRK - who have been commissioned to refine the models, produce a Block Model, and derive a final resource estimate for Mollacas in Q2 2012.

On completion of the new, upgraded, resource statement, the Feasibility Study will be commissioned, andan application to the Chilean Government authorities for a development licence is expected to be completed in Q4 2012.

The terms of reference for the conduct of a Feasibility Study at Mollacashave been prepared, which will form the basis of tender process by suitable consulting groups.

VALLECILLO PROJECT

The drill campaign at Vallecillo was completed during the quarter.

Drilling of the tourmaline breccia's to the north of the La Colorada deposit indicate that the breccia's generally comprise narrow veinlet's with sporadic Au and Zn values.

The in-fill drill program at the La Colorada deposit returned values that are consistent with previous drilling results (Appendix 2 Figure 7 and Table 6). The Company is currently completing further sampling of the drill holes, and is expected to be in a position to release a 3D geological model to SRK for resource estimation purposes during Q2 2012.

Once the updated mineral resource estimate is available, a pre-feasibility study will be initiated.An RC drilling program in the Portezuelo area located in the vicinity of La Colorada returned low Cu and Mo values, and it now appears that the porphyry system identified at Portezuelo is deeply eroded, with no mineralisation of economic significance.

_____________________________2Based on an earlier Block Model for the deposit. 

CAMERON PROJECT

Following the conclusion of an access agreement with the surface rights holder in mid-March 2012, work commenced on the construction of an access roadand drill pads for the planned RC drill rig sites.

The reconnaissance RC drilling program, designed to test Au, Mo and Cu surface anomalies that were delineated by a prior soil geochemical sampling program, is to commence in May 2012.

LA PIEDRA

An alteration map (1:5,000 scale) has been compiled from surface mapping undertaken during the quarter. Two sections across the main alteration zone were sampled, with sixteen samples having been submitted for ICP analysis. Further detailed surface mapping and sampling will be required prior to finalising drill hole locations.

CORPORATE

Capital Raising

On 6 January 2012 the Company received gross funds of approximately A$10.3 million by issue of 73,864,286 new fully paid shares (Shares) in the Company. This issue was the second tranche of the A$40 million placement of 285,714,286 Shares to institutional investors in the United Kingdom, Australia, Asia and Chile at an issue price of A$0.14 per Share announced on 25 November 2011 and approved by shareholders at the Company's Extraordinary General Meeting on 4 January 2012.

Rights Issue

The Rights Issue of one new share (New Share) at an offer price of A$0.14 per New Share for every twenty Shares held by Australian and New Zealand resident shareholders (Eligible Shareholders), announced 24 November 2011, closed on 3 January 2012 with 1,211,141 New Shares (approximately 2% of the Right Issue offer) being subscribed for by Eligible Shareholders raising approximately A$0.2 million. The Directors resolved not to place the undersubscribed New Shares.

Annual General Meeting of Shareholder

The Company announced that the Annual General Meeting of shareholders for the year ended 31 December 2011 will be held at 54 McLaren Street, North Sydney NSW, 2060 on Thursday, 31 May 2012 at 10.00am (Sydney time).

Cash Position

Following completion of the A$40 million capital raising, the Company is fully funded to deliver the 2012 work programs including the approximately 100,000 metre diamond drilling program at Los Calatos, the Feasibility Study and pre-development work at Mollacas, and the pre-feasibility study at Vallecillo.

As at 31 March 2012, Metminco had cash reserves of approximately A$42.3 million.

William Howe

Managing Director

Company Background

Metminco is a dual ASX and AIM listed company with a portfolio of copper, molybdenum and gold projects in Peru and Chile.

The Los Calatos project, located in southern Peru, has a Mineral Resource of 2,316 million tonnes, comprising an Indicated Resource of 885 million tonnes at 0.42% Cu and 270 ppm Mo, and an Inferred Resource of 1,431 million tonnes at 0.40% Cu and 180 ppm Mo (at a 0.2% copper cut-off).

The Chilean assets include the Mollacas copper leach project with a Mineral Resource of 17 million tonnes consisting of an Indicated Resource of 7.2 million tonnes at 0.56% copper, and an Inferred Resource of 9.8 million tonnes at 0.52% copper (at a 0.2% copper cut-off); and the Vallecillo gold zinc project with a Mineral Resource of 10.1 million tonnes consisting of an Indicated Resource of 7.9 million tonnes at 1.14g/t Au; 11.4g/t Ag; 1.32% Zn; 0.29% Pb and an Inferred Resource of 2.2 million tonnes at 0.78g/t Au; 8.2g/t Ag; 0.58% Zn; 0.26% Pb (at a cut-off grade of 0.3g/t Au).

The Company also has a number of early stage exploration projects where initial exploration activities have identified anomalous copper, molybdenum and gold values.

Appendices can be viewed here:http://www.rns-pdf.londonstockexchange.com/rns/4226C_-2012-4-30.pdf