Acquisition of Mining Project

18 Feb 2005 08:00

Metals Exploration PLC18 February 2005 FOR IMMEDIATE RELEASE 18 FEBRUARY 2005 METALS EXPLORATION Plc INITIAL SAMPLING AT JACLUPAN PROSPECT IDENTIFIED SIGNIFICANT GOLD AND COPPER MINERALIZATION The Board of Metals Exploration is pleased to announce the acquisition of theJaclupan Project on the Island of Cebu in Central Visaya's Philippines. Metals Exploration has signed a Memorandum Of Understanding (MOU) with MetexMineral Resources Corporation, a Philippine registered company. The MOU grantsMetals Exploration the exclusive rights to acquire 100% of the Jaclupan Project, comprising one Exploration Permit Application (EPA). The Jaclupan Project is located within 5 kilometers of the large open-cast andunderground copper-gold mines of Atlas Consolidated Mines & DevelopmentCorporation (pre-mining reserve of 1 billion tonnes grading 0.46% Cu and 0.25 g/t Au). The Jaclupan Project is an Exploration Permit Application covering 3,321hectares. Preparation will commence immediately for defining targets fordrilling, which is allowed once the Exploration Permit has been granted. Occurrences of gold and copper mineralization have been identified in fourlocalities in Barangays Bantoon, Manduang, Kuanos and Kanluntao. These prospects are potentially related to regional structures which are interpreted as being within the periphery of a porphyry intrusive(s). The first reported reconnaissance survey of the project area was carried outduring 1997. Thirty four (34) rock chip samples obtained from the surfacereturned results ranging up to 83.03 g/t Au, with best results of 19.05 g/t Au,23.0 g/t Au, 30.37 g/t Au, 44.80 g/t Au, 53.8 g/t Au and 83.03 g/t Au.Similarly, encouraging results for copper were obtained ranging up to 2.5% Cu,with best results of 2.3% Cu, 2.4% Cu and 2.5% Cu. The samples were taken fromhighly altered, hematite/limonite-rich, chalcopyrite-bearing intrusive andesitic volcanics with local malachite stains in fractures. Previous exploration work at Jaclupan confirms the presence of copper-goldmineralization containing significant, near-surface high-grade gold+coppermineralization. Metals Exploration presently has a team of geologists carryingout reconnaissance activities within the area and the project will be a priority target for follow-up exploration and possibly drilling in 2005. The Jaclupan Project was introduced to the Company by East West Drilling (L)Limited ("EWD") pursuant to an arrangement agreed in December 2004 whereby EWDagreed to use reasonable endeavours to introduce potential projects to theCompany. The fee payable to EWD, as reported in the Company's announcement of 2 February 2005, is a success fee of £45,000 and the issue of a warrant tosubscribe for 2,000,000 Ordinary Shares at 3.25p per share. It was also agreedthat EWD would utilise the success fee in subscribing for 1,500,000 OrdinaryShares at 3p per share. Contact: Steven Smith, Chairman 07797 721 858Jonathan Anderson, Investor Relations 07950 410 680 0063 (0) 9175606654 This information is provided by RNS The company news service from the London Stock Exchange