Metals Exploration Regulatory News (MTL)

13 Mar 2008 07:01

Metals Exploration PLC13 March 2008 13 March 2008 Metals Exploration PLC Runruno - Cripple Creek analogy confirmed Metals Exploration PLC (AIM: MTL) ('Metals Ex' or 'the Company'), the naturalresources exploration and development company with assets in the Pacific Rimregion, is pleased to report on the results of an investigation of themineralisation and host rocks at its 100% controlled Runruno gold-molybdenumdeposit in the Philippines by Dr. Eric Jensen PhD, a recognised expert onalkaline intrusive-associated gold mineralisation, especially Cripple Creekstyle deposits. HIGHLIGHTS: Key conclusions of Dr. Eric Jensen's report: • "In short, the Runruno gold deposit is remarkable in terms of itsshared characteristics with other alkaline epithermal deposits, includingCripple Creek, Colorado, and its additional potential as MTL's explorationactivities continue and expand." • "Significant potential for additional discoveries of mineralisationseems obvious." The Company previously identified potential similarities between its Runrunogold-molybdenum deposit in the Philippines and the Cripple Creek deposit inColorado in its Annual Report and Accounts dated 30 September 2006. To explorethis potential analogy, the Company commissioned Dr. Eric Jensen PhD, a worldrenowned expert on alkaline intrusive-associated gold mineralisation, especiallyCripple Creek style deposits, to undertake an investigation of the Runrunomineralisation and its host rocks. Dr. Jensen visited Runruno between 7th -15th February 2008. The following paragraphs are extracts taken from Dr. Jensen's report to theCompany following his visit: - "In short, the Runruno gold deposit is remarkable in terms of its sharedcharacteristics with other alkaline epithermal deposits, including CrippleCreek, Colorado, and its additional potential as MTL's exploration activitiescontinue and expand." - "Significant potential for additional discoveries of mineralization seemsobvious, as multiple zones of alteration have yet to be evaluated, several areasof current small-scale mining activities have not yet been drill tested,drilling has not been conducted at depths greater than 180 meters in most areas,and the "feeder zones" for the flat-lying zones of mineralization thatconstitute the existing resource have yet to be identified." - "The styles of alteration and mineralization at Runruno ... resemble thestyles of Au-(Mo) mineralization associated with multiple alkalic igneouscomplexes in North America, and notably, the Cripple Creek gold deposit inColorado." - "In addition to the zones of precious metal-mineralization that bearsimilarity to North American alkaline Au-(Mo) systems, several other notablehydrothermal features were seen in the Runruno area (and as recognized by othersand previous exploration programs in the area); these include a prominent zoneof acid sulfate (quartz-alunite phyllosilicate) alteration developed at thehighest elevations in the center of the Runruno volcanic complex (Kori Kuraarea), and zones of biotite-magnetite-Cu-sulfide mineralization developed alongthe southern flanks of the igneous complex. The high level zones of acidalteration may represent "lithocap"-like features that formed from condensationof acid vapors near the top of the paleo-hydrothermal system(s), and the zonesof biotite-magnetite-Cu-sulfide mineralization appear to represent deep seated,high-temperature (porphyry-like?) styles of mineralization that differ markedlyfrom the epithermal-styles of Au-Mo mineralization. The latter constitute anindependent exploration target, while the former gives the favorable impressionthat the top levels of at least some of the Tertiary hydrothermal systems werepreserved, indicating that much of the volume of epithermal style mineralizationmay have escaped erosion in that area." Jonathan Beardsworth, Chief Executive of Metals Ex, said: "We were delighted to host Dr. Jensen's visit to site, and gratified that he hasconfirmed the Company's view that the deposit at Runruno is analogous to that ofCripple Creek. "This announcement highlights the significant additional potential at Runruno,and should be viewed in conjunction with our press release, dated 4th March2008, which announced that 775,000 ounces of the resource of 2.1 million ouncesalready established at Runruno now reports to the Indicated category. "We are further confident in the potential of this exciting well-mineralisedsystem." Significance to the Company On 29 January 2008, the Company announced the commissioning of a scoping studyto assess the technical and economic aspects of developing a mining andprocessing operation to recover gold and molybdenum. This study, which is basedon the current estimated mineral resource (27.0 mt @ 2.41 g/t Au and 0.062% Mo),is current and ongoing and it is likely that it will provide the design for anydevelopment to be undertaken at Runruno. The confirmation by Dr. Jensen that Runruno is analogous to Cripple Creek issignificant to the Company in that, with further exploration to be undertakenover time, it enhances the potential for the discovery of additionalmineralisation at Runruno. Any success from this exploration would potentiallybuild a mineral inventory in excess of the two million ounces so far outlinedenhancing any development undertaken at Runruno by an extension of the mine lifeor as a driver to expand production. About Dr. Jensen As part of his PhD at the University of Arizona, Tucson, Arizona, Dr. EricJensen carried out research on a variety of topics related to economic geology,petrology, and geochemistry; specializing in mineral deposits related toalkaline magmatism. The topic of his PhD dissertation is "Magmatic andHydrothermal Evolution of the Cripple Creek Gold Deposit, Colorado, andComparisons with Regional and Global Magmatic-Hydrothermal Systems Associatedwith Alkaline Magmatism" (Jensen, E.P., 2003). For the past 13 years, Dr. Jensen has been actively involved with alkalinesystems, in particular the Cripple Creek mine and its environs. Cautionary Statement The Company is encouraged by Dr. Jensen's findings, but cautions that anygeological similarity between Runruno and Cripple Creek cannot be assumed toimply that further 'Cripple Creek style' ore bodies will be discovered atRunruno or to be an estimate of their extent. Mineral exploration isspeculative in nature and involves many risks. There can be no assurance thatany discovered mineralisation will result in an increase in the reserves orresources of the Company. As a result of these uncertainties, no assurance canbe given that exploration activities undertaken by the Company will result inany new commercial mining operations being brought into operation. For more information: Jonathan Beardsworth + 44 (0) 20 7927 6690 CEO + 44 (0) 7747 101 552 Adrian Hadden + 44 (0) 20 7523 8350Collins Stewart Europe Limited Charles Vivian + 44 (0) 20 7743 6672Pelham PR Klara Kaczmarek + 44 (0) 20 3159 4395Pelham PR 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. The information in the report to which this statement is attached that relatesto Exploration Results, Mineral Resources or Ore Reserves is based oninformation reported by Dr. Eric Jensen, who is a technical consultant to theCompany and has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a Competent Person as defined in the 2004Edition of the 'Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves' (JORC Code). Dr. Eric Jensen consents to theinclusion in this release of the extracts from his report in the form andcontext in which they appear. This information is provided by RNS The company news service from the London Stock Exchange