18th Apr 2005 07:00
Minco PLC18 April 2005 MINCO PLC Minco Receives Operating Licence for La Laguna Zacatecana. •First silver production due to commence in 2006 •All necessary statutory documentation now secured London: 18 April 2005: AIM quoted precious metals developer Minco plc (MIO);("Minco"; "the Company"), today announces that it has received the operatinglicence for the Laguna Zacatecana Silver Tailings project in Mexico. Thislicence was the sole remaining statutory procedure that Minco had to complete inorder to begin operations and allows the Company to commence construction andoperation of the process plant following completion of the bankable feasibilitystudy by Micon International. Minco intends to commence extraction of silver rich tailings from the lake bedat Laguna Zacatecana during 2006. The project showed robust economics in the feasibility study with key indicatorsof: • Operating costs of US $2.28 per ounce silver equivalent • An internal rate of return in excess of 46% • Net present value at 5% discount of US $37 million, at 10% discount US$ 26.5m pre tax • Total silver equivalent production of 18 million ounces • Total reserves of 7.6 million tonnes • Project life of 8 years from lake based tailings at 1 MT per annum production • Total pre-production capital expenditure of US $19.4 million. The tailings project, which is of considerable importance to Zacatecas due tothe remediation of a local water supply, has received significant support bothat a state and national level.. Subsequent to the Laguna feasibility study, published in November, Minco hascompleted an additional drill programme to improve resource classification, thiswill be used in the bankable study. Mexico Precious metals focus: During 2005 Minco has made significant progress in developing its preciousmetals portfolio in Mexico. La Laguna is on track to provide the Company withits first revenues in 2006. The Minera Sisa project brings an asset which,having already been a profitable operator without the benefit of systematicexploration or development expertise, Minco believes can be a significanthigh-grade silver resource. Project advances combined with strong links with thegovernment bodies responsible for mineral rights and some first classopportunities for precious metals development mean that Minco will developshareholder value by focusing funds and management time primarily within Mexico.Consequently the Company will not take up the option to develop theVodorazdelnoe gold project in Russia. Speaking today, Matthew Dorman, CEO stated: "The receipt of the operating licence means that following completion of thebankable study we can meet our target of having a fully operational silverproject underway in 2006. With a firm operations base established in Mexico andpositive trends in the silver price I believe Minco will consolidate itsposition and drive shareholder value by concentrating funds and time in thisregion and commodity. Our decision not to take up the Vodorazdelnoe option means that we can nowconcentrate on the excellent prospects that Mexico offers and seek furtherprojects which complement our current portfolio." Minco continues to develop its holdings in Mexico, primarily the Minera Sisahigh grade gold silver project where excellent progress on the project hasallowed the Company to accelerate the drill programme which is now scheduled tocommence next month. Matthew Dorman, CEO.Tel: +34 687 494550 Email: [email protected] Roger Turner, Chairman.Tel +44 (0) 1273 495500 E-mail: [email protected] Laurence Read/Amanda Harris , Conduit PR+44 (0) 207 618 8760 / +44 (0) 7979 955 923 E-mail: [email protected] MINCO is a precious metals development and exploration company traded on the AIMmarket in London. Ticker symbol (MIO) www.minco.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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