12th Jun 2006 07:30
Minco PLC12 June 2006 MINCO PLC 12 JUNE 2006 DRILLING INTERSECTS MAJOR SULPHIDE MINERALISATION AT BILBAO PROJECT, ZACATECAS LONDON: 12 June 2006: AIM quoted precious and base metals explorer and developerMinco plc ("Minco") is pleased to announce the discovery of a new zone ofsulphide mineralisation on its Bilbao silver, zinc, lead, copper project locatedapproximately 56 kilometres southeast of the city of Zacatecas in centralMexico. A 3,000 metre drill program commenced in late May with the second hole, B-6A,intersecting three zones of oxide and sulphide mineralisation. The lowermostzone comprises 39.0 metres (estimated 35.0 metres true width) of massive tosemi-massive sulphide mineralisation, including pyrite, galena and sphaleritemineralisation. Preliminary assay results for the lower mineralisedintersection prepared by SGS Laboratories have yielded a 15.25 metreintersection averaging 2.43% zinc, 0.56g/t gold, 69.0g/t silver, 0.29% lead and0.37% copper. Within this mineralised zone a 9.15 metre intersection averages3.45% zinc; and a 3.05 metre intersection averages 2.14g/t gold and 81.0g/tsilver. Au Ag Pb Zn Cu From (m) To (m) metres g/tonne g/tonne % % % 224.00 225.50 1.50 0.12 120 1.04 6.41 0.16 225.50 227.05 1.55 0.06 26 0.33 3.10 0.08 227.05 228.60 1.55 0.04 24 0.19 2.61 0.27 228.60 230.10 1.50 0.03 2 0.06 3.04 0.30 230.10 231.60 1.50 0.01 2 0.04 2.79 0.28 231.60 233.15 1.55 0.05 20 0.06 2.83 0.23 233.15 234.70 1.55 2.65 24 0.08 1.89 0.28 234.70 236.20 1.50 1.61 141 0.27 0.17 0.72 236.20 237.70 1.50 0.54 156 0.55 0.95 0.41 237.70 239.25 1.55 0.48 182 0.38 0.50 0.99 Table of preliminary assay results Hole B6A - SGS de Mexico, Durango, Mex. A third hole, B-6B drilled vertically from the same collar position as hole B-6Ahas intersected two zones of mineralisation, including a 13.22 metreintersection comprising veins and skarnified tremolitic limestone containingsulphides - pyrite, chalcopyrite and galena. The core from these holes iscurrently being logged and sampled. Complete assay results for these holes willbe reported when available. The drill programme is ongoing. As announced on 7 March 2006, Minco entered into an Option and Joint VentureAgreement on the Bilbao Project with Shoshone Mexico, S.A. de C.V. and iscurrently carrying out a USD$500,000 first-stage due diligence programme, whichin addition to the present drilling to investigate the potential for sulphidemineralisation beneath the existing oxide resources, includes an evaluation ofthe oxide resources as well as the completion of a preliminary update of anearlier pre-feasibility study. The Bilbao project comprises approximately 1,292 hectares located in the PanfiloNatera mining district of south central Zacatecas, adjacent to Minco's 100%owned El Morro exploration concession area (211,000 hectares). The existingBilbao oxide deposit comprises a limestone-hosted replacement deposit as well asexo-skarn mineralisation hosted within and along the contact of the nearby LaBlanca granitic pluton. The deposit is polymetallic with iron, lead, zinc,copper, silver and tin as the major metallic components. Above a depth ofapproximately 80 metres the deposit is oxidised. Approximately one milliontonnes of oxide ore was mined from the property prior to 1945. The new sulphide intersection does not appear to be the down dip extension ofany of the known zones of oxide mineralisation. The new zone also appears to bestratabound and replaces the limestone along bedding. It is likely the down dipcontinuation of an as yet undiscovered zone of oxide mineralisation. Mincobelieves that there may be at least four zones of potential oxide and sulphidemineralisation present at Bilbao within the immediate area of the old workings. The Bilbao property was the subject of a pre-feasibility study prepared byKilborn Inc. in 1995 and subsequently updated in 1997. The Kilborn study wasbased on an inferred resource estimate prepared by Watts, Griffis and McOuat toJORC standards and metallurgical test work completed by Lakefield Research. Thehistorical calculations of 2.44 million tonnes of oxide ore at an average gradeof 92.3g/t silver, 0.39% copper, 3.73% zinc, 3.3% lead together with cadmiumby-product are in the inferred category of resources. As such they areconsidered speculative and cannot have economic considerations applied to them. Minco has not yet undertaken any independent investigation of the oxide resourceestimate nor has it independently analysed the results of the previousexploration work in order to verify the classification of the resources, andtherefore the historical estimates should not be relied upon. However, Mincobelieves that these historical estimates provide a conceptual indication of theoxide potential of the property and are relevant to ongoing exploration. Commenting on the drill results, Minco's Director of Exploration & BusinessDevelopment, Terence McKillen stated: "The sulphide intersection in hole B-6shows significant potential for economic resources below the already known oxideresources. Drilling is ongoing and we will report the results as appropriate.In addition, we will be re-evaluating the open pit oxide resources and updatingthe 1997 Kilborn Study over the next few months". The above information has been reviewed and verified by Mr. Roger Turner, CEOand Chairman of Minco, for the purposes of the Guidance Note for Mining, Oil andGas Companies issued by the London Stock Exchange in March 2006. Mr. Turner,with 40 years of mining engineering, management and consulting experience,graduated as a mining engineer from the Camborne School of Mines, has an MScdegree in Economic Geology from Leicester University and is a member in goodstanding with the Institute of Mining and Metallurgy and a UK CharteredEngineer. About Minco: Minco is an AIM-quoted precious and base metals exploration and developmentcompany with silver projects in Mexico and zinc exploration in Ireland. Tickersymbol "MIO". For further information, www.minco.ie or contact: Roger Turner, CEO & Chairman +44 (0)7739 92 813Terence McKillen, Exploration & Business Director +1 416 362 8243 / +1 416 362 6686Danesh Varma, CFO +44 (0)20 7397 8154 / (0)7740 932 766Simon Beardsmore, Commerical Manager +44 (0)20 7397 8151Chris Rollason, Collins Stewart +44 (0)20 7523 8350Alex Buck, BuckBias +44 (0)7932 740 452 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Minco PLC