TIDMMIO
RNS Number : 6170O
Minco PLC
29 May 2015
MINCO REPORTS INTERIM FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED
31 MARCH 2015
Dublin, 29 May 2015 - Minco Plc (AIM-"MIO") (the Company),
reports that it has filed its unaudited interim condensed financial
statements for the three month period ended 31 March 2015.
Copies of the Accounts and related Management's Discussion and
Analysis are available on the Company's website
www.mincoplc.com
All dollar amounts are stated in US dollars, unless otherwise
noted.
FINANCIAL RESULTS
For the three month period ended March 31, 2015, Minco recorded
a profit of US$482,000 compared to a loss of US$271,000 for the
same period ended March 31, 2014.
A foreign exchange gain of US$665,000 was recorded during the
period compared to a foreign exchange gain of US$17,000 during the
same period in 2014. Administrative expenses (excluding foreign
exchange) for the three month period ended March 31, 2015 amounted
to US$203,000, compared to US$292,000 in the same period in
2014.
During the quarter Minco invested US$254,000 on mineral
exploration, mostly on drilling on the Buchans and Pennines
zinc/lead exploration projects.
At March 31, 2015, Minco held US$5,431,000 in cash and cash
equivalents. At March 31, 2015, the Company had a working capital
surplus of US$5,013,000, compared to a working capital surplus of
US$5,497,000 at December 31, 2014.
At March 31, 2015, Minco held mineral properties with a book
value of US$13,389,000.
BUCHANS BASE METAL PROJECTS
Minco resumed drilling south of former Lucky Strike mine in the
Buchans area of Central Newfoundland in April of 2015, following up
on favourable results from drilling in 2014.
The 2015 programme totals approximately 2,100 metres of drilling
in seven new holes, as well as extensions to four holes previously
drilled by Minco between 2008 and 2014, and is testing several
mineralized horizons to depths of less than 250 metres. All holes
are located within 250 metres of the former Lucky Strike mine.
The initial three holes were drilled 125 to 200 metres to the
west and southwest of drilling completed in 2014, beyond the
interpreted limits of the Engine House mineralized zone and the
Lucky Strike massive sulphide zone, and returned anomalous base
metal values at the Lucky
Strike horizon, as well as highly anomalous base metal values
from the deeper 'Ore Clast' horizon. Full details and assays will
be released upon receipt and assessment of all assay results.
Following completion of the spring drilling programme, Minco
will continue its re-logging of historical drill core to assist in
the geological interpretation and help define additional priority
targets at the Company's other undeveloped base metal prospects in
the Buchans area in preparation for a second 2015 drilling program
to be undertaken later in the year.
Minco has applied for grant funding from the Government of
Newfoundland and Labrador's 2015 Junior Company Exploration
Assistance ("JEA") programme, from which the Company may receive
grants of up to $100,000 to support the 2015 Buchans drilling
programme.
In May 2015, Minco received a grant of CDN$45,000 from the
Government of Newfoundland and Labrador relating to the 2014
exploration program.
WOODSTOCK MANGANESE PROJECT
In July 2014 Minco completed a Preliminary Economic Assessment
("PEA") of its wholly owned Woodstock electrolytic manganese metal
("EMM") project, located 5 km west of the town of Woodstock and the
junction of the Trans Canada and I-95 Highways in west-central New
Brunswick, Canada.
Given the large scale of the Woodstock project, Minco is
currently seeking a qualified partner to continue the development
of the project. With the assistance of the Canadian Trade
Commission in China, Minco has approached major EMM companies with
a view to seeking a partner in China.
The electrolytic manganese metal market has been dominated by
Chinese producers since 2000, and China has consistently supplied
almost all of global demand. By 2011, when EMM demand reached its
peak of 1.8 million tonnes of EMM, Chinese plant capacity was
approximately 2.4 million tonnes.
Although most of the Chinese EMM producers are currently focused
on achieving internal efficiencies, one of the largest Chinese EMM
producers has recognized the advantages of the Woodstock project
and has initiated a technical due diligence of the project.
It is Minco's goal to seek a development partner to advance the
Woodstock project through to the pre-feasibility and final
feasibility development stages during this period of transformation
within the Chinese and global EMM industry.
MINERAL EXPLORATION AT NORTHERN PENNINES, ENGLAND
Minco's exploration drilling in the northern Pennines continued
until January 2015.
Hole NW001, which was drilled in late 2014 in difficult winter
weather conditions to explore the Whitewood-Barneycraig-Williams
fault/vein structure in Northumberland, intersected three separate
mineral sections at relatively shallow depths within and above the
Great Limestone horizon, including a narrow intersection of 0.3
metres averaging 20.9 % zinc at a depth of 187 metres.
Hole NW002, drilled in early 2015, intersected 8.95 metres of
zinc lead mineralisation averaging 3.82% zinc and 1.57% lead,
including 5.6m averaging 5.80% zinc plus 2.13% lead, within the
Great Limestone. The Barneycraig Fault was intersected at a depth
of 230 metres within shales which were mineralised over 1.90 metres
with a grade of 8.22% zinc, including 1.65 metres with a grade of
9.43% zinc. Above the Great Limestone, the Firestone Sill, a
massive sandstone unit, was mineralised over 8.05 metres with a
combined zinc/lead grade of 3.41%.
DDH# Inclination Horizon From To m Zn% Pb% Zn+Pb% Ag g/t
Firestone
NW001 70˚ sill 117.20 121.00 3.80 3.16 1.19 4.35 6.7
includes 117.20 118.45 1.25 3.95 3.56 7.51 16.7
Pattison
sill 138.40 141.60 3.20 2.46 1.94 4.40 5.4
Great Limestone 177.10 177.70 0.60 4.09 0.36 4.35 6.4
Great Limestone 186.70 187.00 0.30 20.9 0.27 21.17 98.0
Firestone
NW002 56˚ sill 118.00 126.05 8.05 3.41 0.00 3.41 4.0
includes 121.35 125.60 4.25 4.92 0.00 4.92 5.3
Great Limestone 201.80 208.45 6.65 4.94 2.04 6.98 12.3
includes 204.10 208.45 4.35 6.94 2.73 9.68 15.9
Iron Post 220.05 221.10 1.05 2.33 .01 2.34 1.5
Fault zone 229.10 231.00 1.90 8.22 .01 8.23 11.8
----------------------------------------- -------- -------- ------- -------- -------- --------- --------
The intersection of reasonable widths of lead and zinc
mineralization at three different levels in both of Holes NW001 and
NW002 is considered a very positive result and indicates the
mineral potential of this large Whitewood-Barneycraig-Williams
fault/vein structure which was previously demonstrated by historic
mining to be mineralized over a strike length of 3.5
kilometres.
XTIERRA INC.
Minco holds 30 million shares (26%) in Xtierra Inc., a company
listed on the TSX Venture Exchange. Xtierra holds mineral
properties located in the State of Zacatecas in the Central Mineral
Belt of Mexico that has generated the bulk of Mexico's silver
production and hosts many world class precious and base metal
deposits.
In April, 2015, Minco and Pacific Road Group of Funds, Xtierra's
major shareholders, agreed to extend the due dates of the secured
notes of US$965,000 from April 30, 2015 to August 31, 2015, and to
provide further advances up to US$15,000 each to fund Xtierra's
property maintenance costs and working capital, to give Xtierra
additional time to assess its strategic alternatives.
For further information of Minco refer to Minco's website at
www.mincoplc.com
For further information, www.mincoplc.com or contact:
John Kearney: Chairman and Chief Executive +1 416 362 6686
Danesh Varma: CFO & Company Secretary +44 (0) 8452 606 034
Peter McParland: Director - Ireland +353 (0)46 907-3709
Warren MacLeod: Director, - President Buchans +1 902 472 3520
John Frain/Alan Connolly: (NOMAD) Davy +353 (0)1 6796363
Sanif Janjua (Broker) Beaufort Securities +44 (0)20 7382 8387
This information is provided by RNS
The company news service from the London Stock Exchange
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