23rd Jan 2007 07:00
Lonmin PLC23 January 2007 Lonmin PLC New PGM mineralisation and drill results from Sudbury PGM Joint Venture at Denison Lonmin is pleased to announce the extension of a known zone (9400 Zone) anddiscovery of a new narrow subparallel zone (Upper Breccia Zone) of significantlow sulphide high PGM mineralisation on the Denison property close to thelocation of the old Crean Hill Mine, see Figure 1. Denison is one of sixproperties which comprise the previously announced PGM joint venture with CVRDInco Limited in Canada's Sudbury Basin. Extension mineralisation to the 9400 Zone has been intersected in 9 holesdrilled from the footwall towards the Sudbury Igneous Complex (SIC) contact. Thezone of mineralisation defined by drilling to date extends from a depth belowsurface of 370 metres to 550 metres, has a strike length of 100 metres andappears to have a vertical plunge. The PGM mineralisation is associated withthin veins and disseminated nickel-copper sulphides. The mineralisation is openalong strike to the west and to depth. The Upper Breccia Zone mineralisation has been intersected by 4 holes at depthsbetween 300 - 400m and is characterized by very low sulphide mineralizationhosted in weakly sheared metabasaltic rocks. The mineralisation is open alongstrike and down plunge where it is yet to be tested. Drilling is continuing todetermine the extent of both types of mineralization. Ian Farmer, Lonmin Chief Strategic Officer commented: "We are pleased to announce the latest drilling results that extend the knownmineralisation in the area and the discovery of a new type of low sulphide PGMmineralisation. This type of PGM mineralization may have been overlooked in thepast when exploration was geared to more massive sulphide nickel targets and webelieve that there is further potential to discover similar mineralisation." Figure 1. Map of the Denison Property and drill hole locations. Please refer towww.lonmin.com for map. The assay results received to date for the 9400 Zone extension areshown in Table 1. Hole Number From To Core True Grade m m length Thickness (m) (m) Pt-Pd-Au Pt Pd Au % Ni % Cu g/t g/t g/t g/t LM0008-1 486.7 499.4 12.6 7.3 4.59 2.36 1.85 0.38 2.36 1.82 Including 488.1 494.5 6.4 3.7 6.44 3.51 2.64 0.29 2.75 3.34 LM0010-0 464.6 472.7 8.1 3.4 8.85 3.97 3.79 1.09 0.08 0.02 LM0012-0 Trace LM0014-0 514.0 544.5 30.5 18.3 3.15 0.94 1.62 0.59 0.64 0.54 Including 514.0 529.3 15.3 9.2 4.01 1.10 2.04 0.86 0.11 0.11 Including 529.3 544.5 15.2 9.1 2.28 0.78 1.20 0.31 1.17 0.96 LM0020-0 500.1 501.0 0.9 0.5 4.67 1.80 2.22 0.65 0.09 0.03 LM0021-0 584.7 585.0 0.3 0.1 1.86 0.46 1.25 0.14 0.25 0.09 and 633.0 637.1 4.1 1.6 1.62 0.67 0.85 0.10 0.65 0.51 LM0021-1 Trace LM0021-2 Trace LM0022-0 537.2 548.4 11.2 3.2 33.89 14.72 14.68 4.49 0.21 0.07 Including 537.2 540.3 3.3 0.9 110.10 47.54 47.82 14.74 0.61 0.07 The assay results received to date for the Upper Breccia Zone are shown in Table 2. Hole Number From To Core True Grade m m length Thickness (m) (m) Pt-Pd-Au Pt Pd Au % Ni % Cu g/t g/t g/t g/t LM0009-0 283.4 298.7 15.3 11.0 1.37 0.49 0.65 0.23 0.07 0.04 Including 283.4 292.5 9.1 6.5 2.10 0.74 1.00 0.35 0.10 0.04 LM0010-0 373.8 380.0 6.2 2.8 17.67 7.09 8.14 2.45 0.23 0.08 LM0018-0 384.0 384.1 0.1 0.1 99.70 37.89 40.97 20.85 1.54 0.51 LM0022-0 435.1 435.3 0.2 0.1 7.99 3.43 2.99 1.57 0.14 0.02 All tabulated assay data has been rounded to two decimal places. Compiled assayintervals are length weighted. Two additional holes have been drilled for whichcomplete assay results are pending. In addition to the drilling on the Denison Property, 3 drill rigs have beendeployed on the Capre, Levack North and McKim properties. Qualified Persons, Quality Control & Methodology CVRD Inco Limited, the manager of the joint venture with Lonmin, takes noresponsibility for nor makes any representation or warranty of any kind relatingto the information contained in this news release. Details of the quality control procedures for these drill results are asfollows: Half core samples are delivered to the ALS Chemex sample preparationfacility in Sudbury, Ontario, where the entire sample is weighed and thencrushed to 70% -10 mesh. ALS Chemex then homogenises the crushed reject bypassing it once through a Jones riffle and then recombines the two halves fromwhich a 200-250 gram portion is split using the same Jones riffle. The split isring pulverised to 85% -200 mesh from which a 100 gram split is sent to theiranalytical facilities in Vancouver, British Columbia. All of the samples with sulphide contents greater than 10% are analysed by theirME-ICP81 (formerly A6 procedure) for Cu, Ni, Co, Fe, S, As, Pb and Zn (0.2 gramsof sample are fused with 2.6 grams of Na2O2 in zirconium crucibles), for Au, Ptand Pd by fire assay/ICP (PGM-ICP23) and for low-level As, Pb and Ag by nitricaqua regia digestion/AAS (AA45). All three procedures are ISO 9002 certified.Results, which exceed the upper limit of the procedures, are redone by anappropriate assay method for the element and level of concentration. Samples with sulphide contents of less than 10% are submitted for the ME-ICP61+PGM-ICP23 procedure. This package is a total acid digestion that assays for Au,Pt, Pd, Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Mg, Mn, Mo, Na, Ni,P, Pb, S, Sb, Sr, Ti, V, W and Zn. A prepared sample (0.250 gram) is digestedwith perchloric, nitric and hydrofluoric acids. The sample is then furtherdigested in a small amount of hydrochloric acid. This solution is analysed byinductively coupled plasma-atomic emission spectrometry and the results arecorrected for spectral inter element interferences. About the joint venture: Lonmin Plc entered into the joint venture with CVRD Inco Limited in January 2005exploring for low sulphide high PGE-Au mineralisation on six Inco properties:Levack North, Trillabelle, Denison, McKim, Capre and Wisner. The joint venturehas targeted a type of PGE-Au mineralisation recently identified in SudburyOntario, where high grades of PGE's are associated with low levels ofcopper-nickel sulphides ("low sulphide high PGE-Au mineralisation"). This typeof mineralisation has become an increasingly higher profile exploration targetin the Sudbury Basin and is being explored, evaluated and in some instancesmined by a number of companies. Forward-Looking Statements Any forward looking statements made in this document represent management'sjudgment as to what may occur in the future. However, the group's actual resultsfor the current and future fiscal periods and corporate developments will dependon a number of economic, competitive and other factors including some which willbe outside the control of the group. Such factors could cause the group's actualresults for current and future periods to differ materially from those expressedin any forward looking statements made in this document. Unless otherwiserequired by applicable law, accounting standards or regulation, we do notundertake any obligation to update or revise any forward-looking statements,whether as a result of new information, future developments or otherwise. Enquiries: Alex Shorland-Ball +44 (0)207 201 6060Vice President,Investor Relations & Communications ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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