Resource Update

6 Dec 2006 07:01

Metals Exploration PLC06 December 2006 METALS EXPLORATION PLC RUNRUNO PROJECT RESOURCE UPGRADED TO 2.03Moz GOLD & 34.4Mlb MOLYBDENUM LONDON: 6 December 2006 - Metals Exploration PLC ("MetalsEx" or "the Company") is pleased to report that the Company has completed a technical review of the Runruno gold-molybdenum deposit, and is now able to define a total inferred mineral resource of 28.3 million tonnes at an average grade of 2.23 grams per tonne gold and 0.06% molybdenum, containing a total of 2.03 million ounces of gold and 34.4 million pounds of molybdenum. Jonathan Beardsworth, Chief Executive of Metals Exploration, said: "We are delighted to have crossed the 2 million ounce threshold and, with the resource open in so many directions, have every expectation that it will continue to grow in size. Importantly, the infill drilling done to date provides much greater confidence in the resource, and we anticipate being able to begin upgrading it into Measured and Indicated categories once drilling restarts in January". RUNRUNO PROJECT Resource Update The revised Inferred Mineral Resource total was calculated from the results of the Company's first fifty three diamond drill holes combined with those of two drill holes of Greenwater to arrive at the total contained metal of 2.03 million ounces of gold and 34.4 million pounds of molybdenum. The Resource estimate is classified as an Inferred Mineral Resource as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 (the "JORC" Code). A major part of the resource is expected to move into the Indicated categoryearly next year, based on the continuity so far demonstrated between drillholes.Drilling will re-commence in early January to complete further infill holes withthe intention of upgrading the majority of the resource into Measured andIndicated status. Since September 30, two typhoons have temporarily affectedaccess to some drill sites. The Company is continuing with other activities such as metallurgical testwork, social and environmental studies as part of a feasibility study into the economics of the Runruno deposit. Results of the first pass metallurgical testwork are expected to be available towards the end of the month. Drilling Programme Since November 2005, the Company has drilled 53 diamond drill holes for a totalof 8,240 metres on a 100m x 100-200m grid spacing over a surface area ofapproximately 1,400 metres x 700 metres. The mineralisation is predominantly 100metres in thickness with higher grade zones at the hangingwall and footwallpositions within the envelope. The mineralisation remains open along strike, up-dip and down-dip andconsequently the Company believes the resource has the potential to increasefurther in size. Ends Contacts: Jonathan Beardsworth, CEO Metals Exploration 020 7927 6690 Adrian Hadden , Collins Stewart Europe Limited, 0207 523 8350 Keith Irons, Bankside Consultants 020 7367 8873 Marc Cohen, Bankside Consultants 020 7367 8875 Technical note 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 900-1,000 gram sample to 200 mesh (75microns). 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 - 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 (200mesh approximately equals 75 microns) 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 compiled by Mr Brian Lueck, who is a Member of the Association ofProfessional Engineers and Geoscientists of British Columbia, Canada. Mr. BrianLueck is employed as a technical consultant to the Company and has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves' (JORCCode). Mr. Brian Lueck consents to the inclusion in the report of the mattersbased on his information in the form and context in which it appears. This information is provided by RNS The company news service from the London Stock Exchange