TIDMMIO
RNS Number : 2491O
Minco PLC
03 November 2016
Minco plc
PROGRESS UPDATE ON RESEARCH PROGRAM INVESTIGATING
CENTRAL MILLING FACILITY IN NEWFOUNDLAND
* Lundberg Cu-Pb-Zn-Ag-Au Deposit added to Central
Milling Program
* Positive Metallurgical Results for all Five Deposits
on Common Flotation Flowsheet
TORONTO, 3 NOVEMBER 2016 - Minco Plc (AIM - "MIO") is pleased to
provide an update on its ongoing research program to investigate
the metallurgical and economic viability of utilizing a central
milling facility to develop its volcanogenic massive sulphide
("VMS") Zn-Pb-Cu-Ag-Au base metal deposits located in central
Newfoundland.
The preliminary test results confirm that selective zinc, lead
and copper concentrates at marketable grades can be produced using
a common flotation flowsheet. The positive results from the
metallurgical test program strongly support the development of the
sequential flotation technology for processing of the central
Newfoundland deposits using a centralized processing facility.
The metallurgical research program is being jointly undertaken
with Canadian Zinc Corporation ("Canadian Zinc") and funded in part
by the Research & Development Corporation of Newfoundland and
Labrador ("RDC") through the GeoEXPLORE Industry-led program and is
scheduled to be completed in December, 2016.
Since its inception in December 2015, the program has expanded
its focus from four VMS deposits, two held by Minco (Bobbys Pond
and Daniels Pond) and two held by Canadian Zinc (Lemarchant and
Boomerang-Domino) to include Minco's Lundberg deposit, which
because of its large size holds more contained zinc, copper and
lead metal than the other four smaller deposits combined.
Minco's 100% owned Lundberg deposit is a large, near-surface
open-pitable resource located on the north side of Red Indian Lake
near the town of Buchans, NL. The deposit is comprised of base
metal sulphide enriched stockwork mineralization located in the
footwall to the previously mined, high-grade, Lucky Strike massive
sulphide ore body, which was mined by ASARCO between 1926 and 1984.
Since 2007, Minco has expanded the deposit to more than twice the
size of original ASARCO estimate.
Table 1: Lundberg Deposit NI 43-101 Indicated & Inferred
Resource Estimate (2013).
NSR ($US) Category Rounded Zinc Lead Copper Silver Gold
Cut-off Tonnes (Zn) (Pb) (Cu) (Ag) (Au)
% % % g/t g/t
---------- ---------- ----------- ------- --------- ------- ------- ------
15 Indicated 23,440,000 1.41 0.60 0.35 5.31 0.07
---------- ---------- ----------- ------- --------- ------- ------- ------
Inferred 4,310,000 1.29 0.54 0.27 4.47 0.08
---------- ---------- ----------- ------- --------- ------- ------- ------
*Source: - Mineral Resource Estimate Technical Report on the
Lundberg Deposit, Buchans Area, Newfoundland, Canada, April 26,
2013; filed on SEDAR
The key rational to include the Lundberg deposit was to fully
assess all the known deposits in the district and to determine if
Lundberg can enhance the economics of a central milling facility
and the future development of this region's mineral resources. The
potential benefits include:
-- Increase Project Life - The additional tonnage contribution
from the Lundberg deposit to a central milling facility could add
considerably to the life of the project.
-- Reliable Mill Feed - Open pit production from the Lundberg
deposit could provide a very predictable and reliable source of
mill feed that will limit potential issues related to maintaining
underground mining rate from the other satellite deposits.
-- Existing Infrastructure - the proximity of the Lundberg
deposit to the town of Buchans provides for ready access to
existing infrastructure as well as existing tailings facilities
that could potentially be expanded (i.e. roads, electricity,
labour).
Highlights of the DMS and Metallurgical Testing
The metallurgical test program completed by Thibault &
Associates Inc. of Fredericton, New Brunswick was based on an
assessment of pre-concentrating the ore prior to flotation using
Dense Media Separation ("DMS") technology and the development of a
process relative to the metallurgical characteristics of five
deposits under development. The results of the bench scale test
program have indicated an improved grade and recovery relationship
for the production of Cu-Pb-Zn concentrates using a sequential
flotation flowsheet.
Highlights of the testing program are provided below.
-- Dense Media Separation - The bench scale DMS test program was
completed to assess the amenability of mineralized samples from the
deposits to physical upgrading (pre-concentration) at each site.
Use of DMS processing technology would provide a potential means of
reducing transportation costs from mine site to the milling
facility and to maximize head grade and reduce downstream
processing costs.
Results from pre-concentration of the samples by DMS (prior to
flotation) was determined to be technically viable for semi-massive
and stringer sulphide samples from the Lemarchant FW, Bobbys Pond
and Lundberg deposits. Results from the testing are provided below.
An economic assessment of processing ores with DMS technology is in
progress to determine if there is a net benefit in reducing the
mass of ore to process compared to the loss of payable metals to
the floats (waste) product.
Sample Overall Metal Recovery to Sinks
+ Fines at 70% Mass Recovery
---------------
Cu (%) Pb Zn (%) Au Ag (%)
(%) (%)
--------------- -------- ----- ------- ----- -------
Lemarchant
FW 94.6 97.7 95.4 97.4 96.4
Bobbys Pond
SMS Comp 98.3 98.6 99.1 95.6 95.6
Lundberg Y1-3 98.3 96.6 96.5 89.6 95.3
Lundberg Y4-8 94.7 94.2 93.9 84.8 90.1
Sample Overall Upgrade Ratio (Sinks +
Fines Relative to Feed)
---------------
Cu Pb Zn Au Ag
--------------- -------- ----- ------- ----- -------
Lemarchant
FW 1.35 1.4 1.36 1.39 1.38
Bobbys Pond
SMS Comp 1.40 1.41 1.42 1.37 1.37
Lundberg Y1-3 1.40 1.38 1.38 1.28 1.36
Lundberg Y4-8 1.35 1.35 1.34 1.21 1.29
-- Common Flotation Flowsheet - Initial bench scale flotation
tests were designed to compare two flowsheet options: 1) a bulk
Cu/Pb-Zn flotation flowsheet and 2) a sequential Cu-Pb-Zn flotation
flowsheet using various reagent schemes and alternative grind
specifications.
Results from the initial flotation testing indicate the
sequential Cu-Pb-Zn flowsheet provided the best overall performance
for the original four deposits tested. Subsequent testing of the
Lundberg Deposit samples indicates it is also amenable to the
sequential Cu-Pb-Zn flotation flowsheet with improved concentrate
grade and metal recoveries over previous metallurgical testing
completed for the 2011 Lundberg Preliminary Economic
Assessment.
-- Flotation Testing - the bench scale metallurgical test work
was aimed at assessing the amenability of the mineralized samples
from the five deposits to a common flotation flowsheet. The test
work serves as a first stage evaluation of developing a process
flowsheet and the ability to process various base metal deposits of
central Newfoundland.
Preliminary results from the bench scale batch flotation tests
confirmed the production of selective zinc, lead and copper
concentrates at marketable grades relative to smelter schedules.
Based on the bench scale batch flotation tests (as an open circuit
without recycle) and process simulation of the sequential flowsheet
mass balance relative to the test program, the grade and recovery
of concentrates for each deposit have been defined by the following
Table and are not representative of lock cycle or pilot testing of
the proposed flowsheet.
Cu Concentrate Pb Concentrate Zn Concentrate
(Grade/Recovery) (Grade /Recovery) (Grade /Recovery)
Deposit (wt %) (wt %) (wt %)
-------------- ----------------- ------------------ ------------------
49.8% /
Boomerang 25.7% / 63.4% 55.4% / 71.2% 91.7%
Lemarchant 60.8% /
MS 33.7% / 78.1% 69.4% / 82.4% 90.7%
Lemarchant 59.8% /
FW 31.0% / 90.1% No concentrate 96.9%
76.5% / 69.3% 64.8% /
Bobbys Pond 30.9% / 83.8% [1] 93.1%
74.0% / 76.8% 61.0% /
Daniels Pond 18.1% / 54.6% [1] 90.1%
61.1% /
Lundberg Y1-3 30.1% / 86.2% 72.1% / 83.1% 78.7%
-------------- ----------------- ------------------ ------------------
[NOTE 1] Lead grade defined by the test program with added
cleaning of the lead concentrate to reduce zinc and iron.
Economic Assessment
The metallurgical test programs are being followed-up with a
Process Simulation and Cost Assessment model (AACE Class V - order
of magnitude / conceptual assessment) to evaluate and identify the
key factors impacting the operating economics of a centralized
processing concept for the production of the base metal
concentrates. Results from the conceptual economic assessment will
be used to help optimize future exploration and development plans,
by focusing on key factors that are critical to assessing the
economic potential and viability of developing the central
Newfoundland deposits through a central milling facility.
ABOUT MINCO PLC
Minco Plc, incorporated in the Republic of Ireland and listed on
the AIM Market of the London Stock Exchange ("MIO"), is an
exploration and development company currently engaged in zinc-lead
exploration in Canada, the United Kingdom and Ireland, and is also
evaluating its Woodstock manganese project in New Brunswick,
Canada.
Minco also holds an approximate 26% shareholding in Xtierra Inc,
(TSXV- "XAG"), which holds mineral properties in Mexico, and a 2%
NSR royalty on the Curraghinalt gold property in Northern Ireland,
currently being explored by Dalradian Resources Inc.
(TSX-"DNA").
For further information contact:
Warren MacLeod: Director, President Buchans Minerals +1 709 725 0555
John F. Kearney: Chairman +1 416 362 6686
Danesh Varma: CFO & Company Secretary +44 (0) 8452 606 034
Peter McParland: Director - Ireland +353 (0) 46 907 3709
John Frain: Davy (NOMAD) +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities)
+44 (0) 20 7382 8415
Website: www.mincoplc.com
Qualified Person
J. Dean Thibault, P.Eng., Senior Process Chemical Engineer of
Thibault & Associates Inc. is the qualified person for this
release and has reviewed the contents for accuracy and approved
this release. Thibault & Associates Inc. are process chemical
engineering firm specializing in process flowsheet development,
plant design and process intensification assessment.
Cautionary Statement - Forward-Looking Information
This news release contains certain forward-looking information,
including, among other things, the expected exploration of mineral
properties. This forward looking information includes, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the timing of
exploration, development and mining activities, the size and
quality of mineral resources, progress in development of mineral
properties, demand and market outlook for metals, future metal
prices and treatment and refining charges, future trends for the
company, and the financial results of the company. Mineral
exploration and development is a speculative business including,
among other risks, the failure to discover mineral deposits but
also from finding mineral deposits that, though present, are
insufficient in quantity and quality to return a profit from
development and production. There can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. Inferred mineral resources
are considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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