Metals Exploration Regulatory News (MTL)

31 Mar 2006 07:01

Metals Exploration PLC31 March 2006 METALS EXPLORATION PLC ENCOURAGING DRILL HOLE ASSAY RESULTS EXPANDS THE RESOURCE POTENTIAL - RUNRUNO PROJECT 29 March 2006 The Board of Metals Exploration PLC ("the Company") is pleased to announce thatresults have been received for drill holes MXD9 to MXD14 of the current diamonddrilling programme being undertaken at its Runruno Project. RUNRUNO - DRILL RESULTS For a map of the Runruno Project please copy and paste the following link intoyour browser: http://www.rns-pdf.londonstockexchange.com/rns/7047a_-2006-3-30.pdf The Company continues to receive encouraging results from the drilling programmeat Runruno. The table below summarises the key results returned to date from theCompany's drilling program since November 2005, including the 2 Greenwater drillholes completed in 2000-2001: Drill-hole Collar Intercept (metres) Au Mo Au_eq 3 Coordinates 2 Number 1 mE mN From to Width g/t % g/tRUD-001 21204 14753 44 48 4 2.71 0.032 3.62 54 56 2 1.09 0.046 2.41 60 66 6 3.83 0.291 12.22 88 92 4 1.25 0.007 1.44 104 108 4 1.23 0.012 1.56 132 136 4 1.93 0.114 5.21 140 152 12 2.06 0.043 3.30 total combined intercept 4 36 2.18 0.084 4.59RUD-004 21293 15134 4 14 10 3.91 0.025 4.62 28 36 8 4.45 0.041 5.62 72 90 18 2.48 0.099 5.33 94 102 8 2.07 0.053 3.58 total combined intercept 4 44 3.09 0.063 4.90MXD1 21219 15084 38 40 2 1.82 0.068 3.78 42 50 8 4.00 0.059 5.70 107 110 3 2.57 0.041 3.75 116 120 4 1.44 0.002 1.50 122 135 13 1.68 0.039 2.80 total combined intercept 4 30 2.37 0.038 3.46MXD2 21318 15272 72 80 8 1.86 0.079 4.13MXD3 21219 15084 37 40 3 2.20 0.044 3.47 45 46 1 1.54 0.018 2.06 47 53 6 3.31 0.045 4.60 total combined intercept 4 10 2.80 0.042 4.01MXD4 21361 15453 39 40 1 1.30 0.105 4.32 88 90 2 2.32 0.024 3.01 92 98 6 1.98 0.012 2.33 total combined intercept 4 9 1.98 0.025 2.70MXD5 21279 15187 37 40 3 2.33 0.027 3.11 84 95 11 4.33 0.079 6.60 total combined intercept 4 14 3.90 0.068 5.86MXD6 21295 15383 114 116 2 2.07 0.012 2.42 120 125 5 1.39 0.026 2.14 156 166 10 2.05 0.026 2.80 total combined intercept 4 17 1.86 0.024 2.55MXD7 21205 14988 116 121 5 2.64 0.083 5.03 123 125 2 1.86 0.111 5.05 131 135 4 2.09 0.164 6.81 148 156 8 2.36 0.045 3.65 total combined intercept 4 19 2.32 0.087 4.82MXD8 21261 15478 83 88 5 2.93 0.029 3.76 112 119 7 6.62 0.044 7.89 138 148 10 2.29 0.098 5.11 total combined intercept 4 22 3.81 0.065 5.68MXD9 21192 15409 77 85 8 1.91 0.052 3.41MXD10 21098 15200 93 97 4 1.08 0.011 1.40MXD11 21019 15117 33 38 5 5.03 0.087 7.53MXD12 10992 15052 100 103 3 2.60 0.019 3.15MXD13 21182 14813 65.4 70 4.6 2.31 0.163 7.00 77 83 6 3.80 0.401 15.34 130 138 6 3.00 0.057 4.64 146.1 154 7.9 2.20 0.075 4.36 162 165.2 3.2 1.00 0.118 4.40 total combined intercept 4 27.7 2.60 0.161 7.24MXD14 20985 15345 60 68 8 0.61 0.081 2.94 Notes: 1. Drillholes prefixed with RUD were drilled by Greenwater during2000-2001. Drillholes prefixed with MXD were drilled by the MetalsEx sinceNovember 2005. 2. Collar Coordinates are the coordinates of the collar of thedrillholes. The drillholes are inclined -60degrees from horizontal, exceptingMXD3 (-70degrees), and orientated towards a grid azimuth of 100degrees(easterly). In general the drillholes are spaced 100 metres apart. 3. Au_eq 'gold equivalent grade' represents an arithmetic calculation ofthe value in US$ of the contained metal per tonne using the current metal prices(as at 27 March 2006) of US$560/oz gold and US$23.5/lb molybdenum. Metal pricessourced from the following websites: www.kitco.com and www.adanacmoly.com. 4. Given the limited nature of exploration activities to date, noassurance or implication is being given, or should be assumed to be being given,by the inclusion of these values in this report that the Runruno Project hasbeen, or will in the future be, deemed to be economic. 5. Reporting of the above composited intercepts was determined byapplying an upper and lower boundary defined by a low grade cut-off of 0.7g/tAu. Some composited intercepts include single metre, internal intercept gradesof less than 0.7g/t Au. Isolated single metre intercepts are not reported unlessconsidered to be significant. No high grade cut-off has been applied to theindividual gold or molybdenum assays. The results appear to show a variation in the gold:molybdenum ratio within thearea being drilled. The molybdenum grades appear to be increasing with depth. So far the results have been obtained from drilling on a 100m x 100-200m gridspacing over a surface area of approximately 1000 metres x 700 metres. Themineralised zones still appears to be approximately 100 metres thick with highergrade zones at the hangingwall and footwall positions within the zone. This areaencompasses the southern-most portion of the area previously drilled by Fil-Amduring the 1970s, upon which their resource calculation was based. The Company is currently about to extend the drilling area uphill to the eastand to the north 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 theweighted average gold grade calculated. This is one of the most appropriatemethods for determining gold content if there is a 'coarse gold' component tothe mineralisation. Molybdenum: The sample is dissolved in Aqua Regia (3:1 HCl:HNO3) andMolybdenum analysis is carried out by Inductively Coupled Plasma - OpticalEmission 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) 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