Metals Exploration Regulatory News (MTL)

7 Aug 2006 07:00

Metals Exploration PLC07 August 2006 METALS EXPLORATION PLC DRILLING RESULTS CONTINUES TO EXPAND THE RESOURCE SIZE POTENTIAL - RUNRUNO PROJECT The Board of Metals Exploration PLC ("the Company") is pleased to announce thatrecent drill results have been received for drill holes MXD26 to MXD31 of thecurrent diamond drilling programme being undertaken at its Runruno Project. The current diamond drilling programme is continually producing excellentresults and the Company is well on track with reaching its target of defining aresource containing in excess of 3 million ounces of contained gold and 50million pounds of contained molybdenum. RUNRUNO - DRILL RESULTS The table below summarises the key results returned to date from the Company'sdrilling program since the previous RNS announcement dated : Drill-hole Collar Coordinates 1 Intercept 2 (metres) Au Mo Number 1 mE mN From to Width g/t %MXD26 21383 15562 35.40 43.00 7.60 2.88 0.051 49.00 51.20 2.20 1.18 0.018 54.90 56.25 1.35 4.82 0.007 total combined intercept 11.15 2.78 0.041MXD27 21383 15562 35.00 40.00 5.00 2.05 0.043 45.00 51.00 6.00 1.64 0.048 total combined intercept 11.00 1.83 0.046MXD28 21378 15170 32.00 42.00 10.00 3.81 0.065 47.00 54.10 7.10 3.15 0.033 57.00 60.00 3.00 1.95 0.056 131.00 132.00 1.00 7.54 0.109 total combined intercept 21.10 3.50 0.055MXD29 21314 14947 64.15 68.50 4.35 1.89 0.095MXD30 21540 15434 79.00 82.00 3.00 2.63 0.023 Notes: 1. Collar Coordinates are the coordinates of the collar of the drill-holes. Thedrill-holes are inclined -70degrees from horizontal (except hole MXD27 which isinclined at -55degrees from horizontal), and orientated towards a grid azimuthof 100degrees (easterly). In general, the drill-holes are spaced on a 100 metresgrid pattern. 2. Reporting of the above intercepts was determined by applying an upper andlower boundary defined by a low grade cut-off of 0.7g/t Au. Some compositedintercepts include single metre, internal intercept grades of less than 0.7g/tAu. Isolated single metre intercepts are not reported unless considered to besignificant (i.e. >5.0g/t Au). No high grade cut-off has been applied to theindividual gold or molybdenum assays. Hole MXD26 intersected one of the high-grade miners' tunnels and was thereforeterminated prematurely at 65 metre depth. Drillhole MXD27 was then drilled fromthe same position but inclined at a shallower angle to intersect the same areaas the tunnel and to continue onwards to its final depth of 150 metres. Importantly, it should be noted that these holes were drilled in an area that isinterpreted to be faulted, with the main fault being the Malilibeg Fault, amoderately west-dipping extensional fault. The fault is interpreted to obliquelycut across the mineralised zone, therefore it is possible that the mineralisedzone adjacent to the fault will have been offset. All of the previously reported holes (MXD1-MXD25, RUD001 & RUD004) were drilledto the west of the Malilibeg Fault. Drill-holes MXD29 and MXD30 were drilledmore or less through this fault zone. As a result, it is thought that the holeswere collared in the western, down-thrown block and consequently did notintersect the majority of the mineralised zone in that fault block. The holescontinued eastwards through the fault and intersected the eastern block, beneaththe footwall of the mineralised zone. Although the holes intersected some minormineralisation, the main zone was not intersected. Drill-hole MXD31 was the first hole to be collared in the eastern side of thefault, and is located 400 metres from the nearest hole. It was an exploratory 'wildcat' hole to determine the stratigraphy and potential for mineralisation.Although the alteration and geology looked promising, the mineralisation was notsignificant in terms of assay results. Drillhole MXD38 has just been completed, and the Company anticipates that theresults for the outstanding drill-holes will be received within 2 weeks time. RUNRUNO - RECONNAISSANCE MAPPING The Company has also been carrying out some reconnaissance mapping in the areato the northeast of the drilling area, and several outcrops of the mainlithologies hosting the mineralisation have been observed. This is considered tobe very encouraging, providing excellent potential for the discovery ofadditional mineralisation to the north and east of the current drillingprogramme. RUNRUNO - METALLURGY The Company has just engaged the services of a consultant metallurgist tocommence a metallurgical testwork programme with the aim of determining thevarious recovery parameters for gold, silver and molybdenum, for a variety ofprocessing and metal extraction options, such as gravity, cyanide leach andflotation. This programme is expected to be completed and results received inabout 8 weeks time METALS EXPLORATION - WEBSITE The Company is currently re-building it website, which will include moredetailed information on its projects, particularly the Runruno Project. Theinformation will include plans, photographs and so forth. The current websitecontains a presentation that was recently shown to various investors and brokinghouses. To view this presentation, please copy and paste the following link intoyour browser: http://www.metalsexploration.com/pdf/06-20-2006/Metals Exploration plc -Investor Presentation - 20 May 2006.pdf 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 involvessieving a 900-1000 gram sample to 200 mesh (75 microns). The entire oversize andduplicate undersize fractions are fire assayed and the weighted average goldgrade calculated. This is one of the most appropriate methods for determininggold content if there is a 'coarse gold' component to the mineralisation. Molybdenum: The sample is dissolved in Aqua Regia (3:1 HCl:HNO3) and Molybdenumanalysis is carried out by Inductively Coupled Plasma - Optical EmissionSpectrometry (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 tonne g/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 onemillionth of a metre.200 mesh the number of openings (200) in one linear inch of screen mesh (200mesh approximately equals 75 microns) 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 858Jonathan Anderson - Investor Relations: + 44 (0) 7950 410 680 or + 63 (0) 917 560 6654Jonathan Guy - Collins Stewart + 44 (0) 7523 8417 This information is provided by RNS The company news service from the London Stock Exchange