Metals Exploration Regulatory News (MTL)

8 Apr 2008 07:05

Metals Exploration PLC08 April 2008 Metals Exploration PLC 90% Gold Recoveries from Latest Metallurgical Testwork Molybdenum Results Encouraging 8 April 2008 Metals Exploration PLC ("Metals Ex" or "the Company") (AIM: MTL), the naturalresources exploration and development company with assets in the Pacific Rimregion, is pleased to announce encouraging results from the metallurgicaltestwork currently being carried out on composite samples representingmineralisation from the transition and new zones in its 100% controlled Runrunogold-molybdenum deposit in the Philippines. Highlights: • Two alternative gold recovery circuits identified - pressure oxidation and BIOX(R). • Results from metallurgical testwork completed to date indicate average gold recoveries of 90 to 92% can be expected from either circuit. • Both test circuits also reported high molybdenum solubilisation, indicating a possible hydrometallurgical recovery route which will be further tested. Testwork has been conducted on the Company's behalf by specialist laboratoriesin Australia (Metcon Laboratories, Burnie Research Laboratory, and Ammtec) andSouth Africa (SGS Lakefield Research, Africa, under the supervision of GoldFields Mining Services in South Africa). Gold Recoveries Metals Ex is pleased to announce that sufficient metallurgical testing has beencompleted on the Runruno mineralisation to identify two alternative goldrecovery circuits suitable for treating the Runruno mineralisation. On the basis of the testwork undertaken on the different styles ofmineralisation, gold recovery from the project can be expected to averagebetween 90 to 92% from either a pressure oxidation (POX) or a BIOX(R) circuit.Both circuits are based on proven technology for the recovery of gold fromrefractory ores including: gravity, flotation, oxidation of the flotationconcentrate, and cyanidation - carbon in leach to recover the gold. Thecircuits differ only in the oxidation step where both POX and BIOX(R)technologies have been shown to be equally applicable. The likely capital and operating costs of the alternative circuits will now beestimated and compared as part of the Runruno Scoping Study programme to aid inthe selection of the preferred circuit. The preferred circuit will then providethe basis for all ongoing processing circuit design work. Once the processingroute is finalised, further testwork will be conducted to optimise the goldrecovery and capital and operating cost regimes. Molybdenum Recovery Testwork for the recovery of a molybdenum product from the Runruno ores isongoing. Recent BIOX(R) and POX testwork both reported high molybdenumsolubilisation, indicating a possible hydrometallurgical recovery route whichwill now be exhaustively tested. Jonathan Beardsworth, Chief Executive of Metals Ex, comments: "We are delighted to have such strong results from our testwork to recover goldfrom the Runruno mineralisation. The confirmation of the application of eitherpressure oxidation or the BIOX(R) process allows us the opportunity to optimisethe processing circuit from a capital and operating cost perspective. "Resolution of the gold processing circuit will now allow us to proceed apace onour Scoping Study work, initially assessing the Runruno project as a standalonegold development project. In addition, it appears from the testwork that amolybdenum recovery circuit could be added to the project without interferingwith the gold recovery circuit. The molybdenum results are a significant boostto our efforts to unlock value from the contained molybdenum." For more information: Jonathan Beardsworth + 44 (0) 20 7927 6690CEO, Metals Ex + 44 (0) 7747 101 552 Tim Feather / Matthew Johnson + 44 (0) 113 246 2610Hanson Westhouse Limited Charles Vivian + 44 (0) 20 7743 6672Pelham Public Relations Klara Kaczmarek + 44 (0) 20 3159 4395Pelham Public Relations QUALIFIED/COMPETENT PERSONS Gary Powell (a Director of the Company) has been involved in the mining andexploration industry for more than 23 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. This information is provided by RNS The company news service from the London Stock Exchange