Metals Exploration Regulatory News (MTL)

9 May 2005 15:36

Metals Exploration PLC09 May 2005 IMMEDIATE RELEASE 9 MAY 2005 METALS EXPLORATION PLC RECONNAISSANCE MAPPING AND SAMPLING AT RUNRUNO PROJECT IDENTIFIES WIDE ZONE OF GOLD AND MOLYBDENUM MINERALISATION OVER 2.2 KILOMETRES Metals Exploration is pleased to announce the surface delineation of a 100 metrewide, continuous zone of gold+molybdenum+copper+silver mineralisation over astrike length of at least 2,200 metres and down-dip depth of up to 400 metres.Preliminary results from rock-chip sampling of the northern and southern limitsof the mineralised zone defined so far have just been received this morning.Gold assays results of 1.2 to 4.89 g/t Au have been obtained from the northernend and for the southern end gold assay results range up to 2.5 g/t Au. TheCompany is waiting for conformation of the gold analyses from the laboratory aswell as analytical results for molybdenum, silver and other elements. The zoneof mineralisation is believed to extend to depth, further to the north andpossibly to the south as well. Mapping is continuing to define the strike limitsto the structure. Results from recent rock-chip sampling in March and April of the 'high-grade'miners' tunnels located in the central part of the mineralised zone have justbeen received with results ranging up to 54 g/t Au and 4,300 ppm Mo The Companyis highly encouraged by these results. Surface sampling of the mineralised zoneis currently underway and the Company is anticipating receiving the firstresults in the next few days of the first batch of surface rock-chip samplingand trenching programs. The Runruno Project comprises one Exploration Permit (EP-II-13) and is locatedsome 210 kilometres to the north-northeast of Manila in Northern Luzon. Theproperty is adjacent to Climax Mining Ltd's Didipio project, which contains theDinkidi gold+copper deposit with a reported global resource of 121 milliontonnes, grading 0.97 g/t Au and 0.39% Cu, for contained 3.8 million ounces ofgold and 470,000 tonnes of copper. Gold was first discovered at Runruno during the early 1960s and itinerant'high-grade' miners have since been selectively mining the higher gold grademineralisation within the main mineralised zone. From 1969 to 1974, Fil-Am Resources Inc. ("Fil-Am") completed a total ofapproximately 8,670 metres of diamond drilling in the central part of themineralised zone, over a strike length of approximately 600 metres, opened 3adits and developed 800 metres of exploratory drives. Results of Fil-Am'schannel sampling of the exploratory drives returned significant results rangingup to 11.82 ounces/tonne gold (367 g/t Au) with the main area averaging 2.8ounces/tonne gold (87 g/t Au) over 40 metres by 20 metres. In 1978 and 1979 a feasibility study was completed by two Japanese companies,and a 1980 feasibility report gave an estimated resource, at 0.8 g/t Au cutoff,of 13.4 million tonnes with an average grade of 1.4 g/t Au and 3.29 g/t Ag for contained 600,000 ounces of gold to a depth of approximately 200 metres belowthe highest part of the deposit. Towards the end of 2000 and early 2001, Placer Dome Exploration Pty Ltd('Placer') completed 11 diamond drill holes for a total of 2,020 metres. Onlytwo holes were drilled through the mineralised zone with another two abandonedat the upper contact of the zone. The remaining holes targeted geophysicalanomalies elsewhere within the tenement. Best results from the two holes whichintersected the mineralised zone are 24m @ 1.74 g/t Au from 42 metres and 12m @2.06 g/t Au from 140 metres in hole RUD-0001, and 10m @ 3.91 g/t Au and 246ppmMo from 4 metres; 8m @ 4.45 g/t Au and 404 ppm Mo from 28 metres and 30m @ 2.07g/t Au and 749ppm Mo from 72 metres. At the present prices of gold and molybdenum, US$430/oz and US$35/lbrespectively, the Company believes that the Runrunogold+molybdenum+copper+silver deposit has good potential to be increased invalue through increasing the tonnage by further drilling of the strike and depthextensions and by analysing future drill samples for gold and molybdenum. Notes: 1. Analyses of element in parts per million ("ppm") is equivalent to grams per tonne ("g/t") 2. Chemical Symbols are given for gold (Au); silver (Ag); molybdenum (Mo). 3. Abbreviations are given for ounce (oz); pound (lb), US dollars (US $) Qualified Person Gary Powell has been involved in the mining and exploration industry for morethan 20 years. He has a Bachelor of Applied Science degree in geology, and is amember of the Australasian Institute of Mining and Metallurgy ("AusIMM") and theAustralasian Institute of Geoscientists ("AIG"). He has compiled, read andapproved the technical disclosure in this regulatory announcement. Contact: Steven Smith, Chairman 07797 721 858Jonathan Anderson, Investor Relations 07950 410 680 This information is provided by RNS The company news service from the London Stock Exchange