TIDMMIO
RNS Number : 2364Q
Minco PLC
28 November 2016
MINCO ANNUAL GENERAL MEETING OF SHAREHOLDERS
Financial Results for Third Quarter September 30, 2016
Dublin, 28 November 2016 - Minco Plc ("Minco" or the "Company")
(AIM - "MIO") reports that at the Annual General Meeting of
Shareholders held in Dublin on 25 November 2016 all the Resolutions
proposed were duly passed with greater than 99% of the votes cast
by proxy in favour of each Resolution. Details are reported
below.
At the Annual Meeting Minco's Chairman, John Kearney, provided
an update on the Company's activities.
METAL PRICES - POSITIVE OUTLOOK
The medium and long term outlook for lead and zinc remains very
positive. Zinc has continued to be one of the strongest performing
metals in 2016, rising from the US$0.70 per pound level at the end
of 2015 to almost US$1.10 per pound during the third quarter and
subsequently trading between US$1.00 and US$1.15 per pound. The
Zinc price increased around 12% in the third quarter of 2016,
following a strong performance in the second quarter of 2016,
taking its improvement in the year to date to 53%.
The fundamentals for zinc have been steadily improving. For the
past five years the zinc market has been in deficit, which has
gradually eroded inflated inventory levels leading to more balanced
market conditions. In addition, a number of mine closures have
reduced the supply of concentrate. The closing in 2015 of
Australia's Century mine and the Lisheen mine in Ireland, combined
with earlier closures of Glencore's Brunswick and Perseverance
mines in Canada have removed more than one million tonnes of mine
supply which represents almost 9.9% of world mine production.
Lead has also performed well in 2016 rising from US$0.75 per
pound at the end of 2015 to US$0.95 per pound during the third
quarter and continuing to stay in the US$0.90 to US$0.95 per pound
range since, despite gradually increasing inventories for most of
the year. Demand for lead continues to be driven by lead-acid
batteries in both e-bikes and automobiles in China. Lead acid
batteries continue to the primary choice for Chinese
automakers.
More recently, following the election of Donald Trump as
President of the United States, there has been a dramatic increase
in the prices most metals. The likelihood of a major infrastructure
construction programme in the United Sates would be very
significant for base metals, and specifically for zinc, the demand
for which is closely linked to steel production.
CENTRAL NEWFOUNDLAND BASE METAL PROJECTS - Metallurgical
Studies
Through its wholly owned subsidiary Buchans Minerals Corporation
("Buchans Minerals"), Minco is engaged in a collaboration agreement
with Canadian Zinc Corporation (TSX:CZN) ("Canadian Zinc")
undertaking a research programme to complete physical and
metallurgical bench scale studies on their respective volcanogenic
massive sulphide ("VMS") deposits located in the Victoria Lake
district of central Newfoundland and to share research data on
their respective central Newfoundland Cu-Pb-Zn-Ag-Au deposits.
The metallurgical portion of the program is now complete with
test results confirming 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.
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.
The metallurgical portion of the program is now being
followed-up with a Process Simulation and Cost Assessment model 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.
The total cost of the research project was originally estimated
at $735,000 with $535,000 to be funded through the Research &
Development Corporation of Newfoundland and Labrador ("RDC")
GeoEXPLORE Industry-led R & D Technology Development and
Demonstration Program. With the inclusion of Lundberg, the budget
has now been expanded to $840,000 with RDC contributing $620,000,
and Buchans Minerals and Canadian Zinc providing $130,000 and
$110,000, respectively.
BUCHANS BASE METAL EXPLORATION - NEWFOUNDLAND CANADA
Since 2015, Minco has focused its exploration efforts near the
former Lucky Strike mine to explore for high-grade resources that
may positively impact open pit and underground development of the
Company's Lundberg deposit. At Lucky Strike, previous operator,
Asarco, mined 5.6 million tonnes averaging 18.4% Zn, 8.6% Pb, 1.6%
Cu, 112 g/t Ag & 1.7 g/t Au.
The Lucky Strike mine exploited high-grade massive sulphides
located immediately above a large, lower grade, stockwork
mineralised zone that comprises the Company's undeveloped Lundberg
deposit. The Lundberg deposit hosts Indicated resources of 23.4
million tonnes grading 1.41% Zn, 0.60% Pb, 0.35% Cu, 5.31 g/t Ag
and 0.07 g/t Au, plus Inferred resources of 4.3 million tonnes
averaging 1.29% Zn, 0.54% Pb, 0.27% Cu, 4.47 g/t Ag and 0.08 g/t Au
(see Minco press release dated March 4, 2013 for more complete
disclosure).
The Lundberg deposit was initially assessed by a positive
Preliminary Economic Assessment (PEA) in 2011 (see Buchans Minerals
press release dated August 12, 2011), and has since been the
subject of further work including resource drilling, environmental
assessment and ongoing metallurgical test work.
Minco initiated a program of to relog the Company's drill cores
in 2015 to assess potential for the discovery of additional
high-grade resources near the Lundberg deposit. This program was
expanded in 2016, and to date, has relogged 301 historic surface
and underground drill holes (49,260m) within 2 km of the former
Lucky Strike mine, and a further 41,465 m in 93 holes from other
nearby prospects located less than 4 km from Lundberg. Although the
program is ongoing, several target areas have been identified and
are under review; particularly an area north of the Lundberg
deposit, where the Lucky Strike massive sulphide deposit remains
underexplored with a down dip to the north where potential remains
for discovery of additional high-grade deposits.
LAKE DOUGLAS GOLD, NEWFOUNDLAND, CANADA
In October 2016, Minco, through its wholly-owned subsidiary,
Buchans Minerals Corporation, competitively staked 2,075 hectares
in central Newfoundland, known as the Lake Douglas project,
including a 3.5 km segment of the prospective trend that extends
between two of three newly discovered prospects announced by Altius
Minerals Corporation ("Altius") (ALS.TO). The Altius discoveries
have sparked significant interest in the region. On September
20(th) , 2016, Altius announced acquiring a (17,200 hectare) gold
exploration property, 40 km southwest of Minco's Buchans project
and 20 km southwest of the Company's Daniels Pond and Bobbys Pond
deposits. The Altius project is also located immediately northeast
and along strike of Marathon Gold Corporation's (MOZ.TO) Valentine
Lake property that, as of April 2015, hosts mineral resources of
1.06 million ounces gold at 2.20 g/t (Measured & Indicated) and
0.20 million ounces gold at 2.85 g/t (Inferred). Minco intends to
conduct initial reconnaissance work for gold on the newly acquired
Lake Douglas claims prior to the onset of winter weather.
LEAD-ZINC EXPLORATION, MOATE, COUNTY WESTMEATH, IRELAND
In November 2015 Minco was granted three new Prospecting
Licences by Ireland's Minister of Communications, Energy and
Natural Resources. These new licences, PLs 1228, 1229 and 3981, at
Moate in County Westmeath, are centred on a specific geological
target identified by Minco, with potential for zinc-lead
mineralization of Tynagh Mine type.
Minco's new Moate licences are located along the northwestern
margin of the Irish Midland Orefield on the "Tynagh-Ballinalack
Trend". All but one of the major Irish zinc-lead deposits of the
Irish Midland Orefield lie along the margins of the Orefield. The
Moate target lies mid-way between the former Tynagh Mine, located
50 kilometres to the southwest, and the similar styled Ballinalack
deposit, situated 35 kilometres to the northeast. The Tynagh Mine
operated successfully from 1965 to 1981 producing 9,000,000 tonnes
of ore, from both open pit and underground, at average grades of
approximately 7% Pb, 5.5% Zn, 0.5% Cu and 81.25g/t Ag (2.6
opt).
Minco's studies of previous drilling have outlined a geological
setting that Minco believes mirrors that at the former Tynagh Mine,
where zinc-lead mineralization was hosted by breccias developed at
the margin between the reef and off-reef limestone facies. The
geology at Moate is also comparable to that at the smaller
Ballinalack deposit. A 10 km long target has been outlined at a
depth of 150 metres below surface, with potential for reef hosted
zinc-lead mineralization of Tynagh-type.
Minco's 2016 drilling programme has initially focused within PL
1229 on the southwestern three kilometres of a 12 km long target
area, adjacent the north-east striking Moyvoughly Fault. Five holes
(1229-35 to 1229-39) have been drilled to date for a total of 700m.
Reef-derived breccias comparable to those at Tynagh have been
intersected confirming the geological model, and in Holes 1229-38
and 39 the breccias contain trace amounts of disseminated
sphalerite. Hole 1229-40 has been collared 80m to the SE of
1229-39.
Interestingly, the geological structure has proven more
complicated than expected as the Moyvoughly Fault has not yet been
intersected in the current drilling programme. The Fault is
believed to cross the current exploration area and to have a
reversed throw of approximately 150m. To the north-east, on PL
1228, previous drilling indicates the Fault is present with a
down-throw of approximately 180m to the north, while on PL 3581,
further north, the fault was intersected by previous drilling with
a throw of 300m.
FINANCIAL RESULTS - THIRD QUARTER ENDED SEPTEMBER 30, 2016
For the nine month period ended September 30, 2016, the Company
recorded a loss of $795,000 compared to a loss of $146,000 for the
same period ended September 30, 2015. The loss for the nine month
period ended September 30, 2016 included a foreign exchange loss of
$128,000 compared to a gain of $503,000 for the period ended
September 30, 2015.
For the three month period ended September 30, 2016, the Company
recorded a loss of $282,000 compared to a loss of $225,000 for the
same period ended September 30, 2015. The loss for the three month
period ended September 30, 2016 included a prior year income tax
adjustment of $83,000 and a foreign exchange loss of $29,000
compared to a loss of $47,000 for the period ended September 30,
2015.
Administrative expenses, excluding foreign exchange, for the
nine month period ended September 30, 2016 amounted to $611,000
compared to $680,000 in the same period in 2015. During the nine
month period ended September 30, 2016 Minco invested $557,000 on
exploration of its mineral properties, of which the largest amounts
were expended on the Buchans zinc lead project in central
Newfoundland.
This news release should be read in conjunction with Minco's
unaudited Financial Statements and Management's Discussion
and Analysis (MD&A) for the nine months interim period ended
September 30, 2016, which are available on the
Company's website at www.mincoplc.com, or on SEDAR
(www.sedar.com).
ANNUAL GENERAL MEETING VOTING RESULTS
Details of the proxy votes for each Resolution voted at the AGM
held on November 25, 2016 are set out below:
Resolution Vote type Voted Voted %
------------------------------------------------- ---------------- ----------- --------
Resolution 1 For 20,093,836 99.9%%
Report and Accounts Against 10,000 0.00%
Votes Withheld
------------------------------------------------- ---------------- ----------- --------
Resolution 2 For 20,093,836 99.9%
Re-elect as a Director Against 10,000 0.01%
Terence McKillen Votes Withheld 0.00%
------------------------------------------------- ---------------- ----------- --------
Resolution 3 For 20,093,836 99.9%
Re-elect as a Director Against 10,000 0.01%
Michael Power Votes Withheld 0.00%
------------------------------------------------- ---------------- ----------- --------
Resolution 4 For 20,093,836 99.9%
Re-appoint Auditors Against 10,000 0.01%
Votes Withheld 0.00%
------------------------------------------------- ---------------- ----------- --------
Resolution 5 For 20,093,836 99.9%
Fix Auditors Remuneration Against 10,000 0.01%
Votes Withheld 2,000 0.00%
------------------------------------------------- ---------------- ----------- --------
Resolution 6 For 20,091,836 99.9%
Authorise Directors to issue securities Against 10,000 0.01%
Votes Withheld 2,000 0.00%
------------------------------------------------- ---------------- ----------- --------
Resolution7 For 20,091,836 99.9%
Disapply Section 1022 (1) of Companies Act 2014 Against 10,000 0.01%
Votes Withheld 2,000 0.00%
------------------------------------------------- ---------------- ----------- --------
Proxies giving discretion to the Chairman have been included in
the totals of votes in favour of each Resolution. The full text of
each Resolution was included in the Notice of the Meeting sent to
shareholders.
ABOUT MINCO PLC
Minco Plc, incorporated in the Republic of Ireland and listed on
the AIM Market of the London Stock Exchange ("AIM: 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:
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
Warren MacLeod: Director, President Buchans Minerals +1 709 725
0555
John Frain: Davy (NOMAD) +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities)
+44 (0) 20 7382 8415
Website: www.mincoplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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