Metals Exploration Regulatory News (MTL)

7 Mar 2006 07:00

Metals Exploration PLC07 March 2006 METALS EXPLORATION PLC • ENCOURAGING DRILL HOLE ASSAY RESULTS - RUNRUNO PROJECT • EXPLORATION PERMIT APPLICATION LODGED OVER A PROPERTY IN THE BAGUIO COPPER-GOLD PORPHYRY DISTRICT 7 March 2006 The Board of Metals Exploration PLC ("the Company") is pleased to announce thatresults have been received for drill holes MXD7 & MXD8 of the current diamonddrilling programme being undertaken at its Runruno Project. These results areinline with the Company's expectations with good gold and molybdenum gradesbeing intersected. The Company has also just lodged an Application for an Exploration Permit withthe Mines & Geosciences Bureau in the Baguio district of Northern Luzon,Philippines. The property is situated just to the north of the previously minedSanto Nino porphyry copper-gold mine. The Company is excited by the lodgement ofthe application as it sits within one of the better known copper-gold porphyrymining districts of the world. RUNRUNO - DRILL RESULTS The Company continues to receive exciting results from the drilling programme atRunruno. The key results from holes MXD7 and MXD8 are summarised below: Drill-hole Intercept (metres) Au Mo 'in-ground value of metal' ID From to Width g/t % Au US$/t Mo US$/t Total US$/t MXD7 116 121 5 2.64 0.0828 48.13 45.64 93.76 123 125 2 1.86 0.1110 33.91 61.18 95.09 131 135 4 2.09 0.1643 38.10 90.55 128.65 148 156 8 2.36 0.0445 43.02 24.51 67.53 MXD7 - total combined intercept 19 2.32 0.0868 42.37 47.83 90.20 MXD8 83 88 5 2.93 0.0285 53.41 15.70 69.11 112 119 7 6.62 0.0438 120.68 24.12 144.80 138 148 10 2.29 0.0975 41.75 53.75 95.49 MXD8 - total combined intercept 22 3.81 0.0647 69.51 35.67 105.18 Notes: 1. Reporting of the above composited intercepts was determined by applying an upper and lower boundary defined by a low grade cut-off of 0.7g/t Au. Some composited intercepts include single metre, internal intercept grades of less than 0.7g/t Au. Isolated single metre intercepts are not reported unless considered to be significant. 2. No high grade cut-off has been applied to the individual gold or molybdenum assays. 3. 'In-ground value of metal' represents an arithmetic calculation of the value in US$/t of the contained metal per tonne using the current metal prices (as at 06 March 2006) of US$567/oz gold(1) (US$18.2/g Au) and US$25.0/lb molybdenum(2) (US$55,120/t Mo). Given the limited nature of exploration activities to date, no assurance or implication is being given, or should be assumed to be being given, by the inclusion of these values in this announcement that the Runruno Project has been, or will in the future be, deemed to be economic. MXD7 is now the southernmost drillhole of this programme, 100 metres south ofMXD1, and MXD8 is the northernmost drillhole and located 100 metres downhillfrom drillhole MXD4. In comparison, the total combined results of MXD8 (22m @3.81g/t Au, 0.065% Mo) are higher in width and grades than MXD4 (9m @ 1.98g/tAu, 0.025% Mo), which is very encouraging. So far the drilling has now covered a surface area of approximately 800 metresby 150 metres. The company is currently expecting results for the remainingsamples from the bottom of drillhole MXD5 as well as for all of drillholes MXD9and MXD10, which will expand the surface coverage area up to 250 metres inwidth. Samples from drillholes MXD11 and MXD12 are currently being submitted tothe laboratory and drillholes MXD13 to MXD17 are currently in progress. RUNRUNO - SAMPLING & ANALYSIS Sample Preparation The drill core is taken from the drill site to a secure compound at theCompany's field camp and is logged by the geologist. The drill core is thensplit into two equal halves along its long axis, with one half being sampled atpredetermined intervals, bagged and sent for analysis. The remaining half-coreis retained in core boxes and stored on site for future reference. The bagged half-core samples are being submitted to an independent 'ISO17025accredited' laboratory for sample preparation and analyses for gold andmolybdenum. All of the half-core samples are crushed by the laboratory and a900-1000 gram split is taken, pulverized and presented for analysis. The remaining crushed sample is retained in bags and stored at the laboratoryfor a period of three months before being returned to the Company for storage.These remaining crushed samples will be used in the future for additionalanalyses for gold, molybdenum, silver, sulphur and other elements as deemednecessary, for example, for resource estimation work. Analytical Techniques Gold: Gold analysis is by classical 'Screen Fire Assay' technique that involves sieving a 900-1000 gram sample to 200 mesh (75microns). The entire oversize and duplicate undersize fractions are fire assayed and the weighted average gold grade calculated. This is one of the most appropriate methods for determining gold content if there is a 'coarse gold' component to the mineralisation. Molybdenum: The sample is dissolved in Aqua Regia (3:1 HCl:HNO3) and Molybdenum analysis is carried out by Inductively Coupled Plasma - Optical Emission Spectrometry (ICP-OES) method. EXPLANATION OF TERMS Au chemical symbol for goldMo chemical symbol for molybdenumHCl chemical symbol for Hydrochloric AcidHNO3 chemical symbol for Nitric Acidg gramt tonneg/t grams per tonne, which is equivalent to parts per million (g/t Au = grams of gold per tonne)% percent (0.034% Mo = 340 parts per million of molybdenum)lb avoirdupois pound (= 453.59237 grams)oz troy ounce (= 31.103477 grams)micron A unit of length equal to one thousandth of a millimetre or one millionth of a metre.200 mesh the number of openings (200) in one linear inch of screen mesh (200 mesh approximately equals 75 microns) SOURCES OF INFORMATION (1) www.kitco.com (2) www.adanacmoly.com and www.metalprices.com EXPLORATION PERMIT APPLICATION - BAGUIO DISTRICT The Baguio regional office of the Mines & Geosciences Bureau ("MGB") hasrecently accepted an Application for an Exploration Permit ("EPA") from theCompany. The application is for a property located in the district of NorthernLuzon, Philippines, and adjoins the Santo Nino property, previously a copper-gold producer. The EPA covers an area of approximately 5,845 hectares and is located about 10kilometres to the northeast of Baguio City. The property is underlain by quartzdiorite and andesite rock types and was previously the object of extensiveexploration for copper+gold+molybdenum porphyry mineralisation during the 1970s. Between 1974 and 1980, Worldwide Mineral and Industrial Corporation("Worldwide"), a Philippine corporation, completed 44 drill holes for anaggregate total of 12,989 metres. Worldwide also carried out a combined IP andResistivity geophysical survey in 1978. The Company is in the process of obtaining and collating all availablehistorical data. QUALIFIED PERSON Gary Powell (a Director of the Company) has been involved in the mining andexploration industry for more than 20 years. He has a Bachelor of AppliedScience degree in geology and is a member of the Australasian Institute ofMining and Metallurgy and the Australasian Institute of Geoscientists. He hascompiled, read and approved the technical disclosure in this regulatoryannouncement. ENQUIRIES: Steven Smith - Chairman: + 44 (0) 7797 721 858 Jonathan Anderson - Investor Relations: + 44 (0) 7950 410 680 or + 63 (0) 917 560 6654 Philip Haydn-Slater - WH Ireland Limited: + 44 (0) 2072 201 666 This information is provided by RNS The company news service from the London Stock Exchange