TIDMMIO
RNS Number : 4612V
Minco PLC
28 October 2014
MINCO INTERSECTS NEW, HIGH-GRADE, MASSIVE SULPHIDE HORIZON
AT BUCHANS, NEWFOUNDLAND
EXTENDS LUCKY STRIKE AND ENGINE HOUSE MINERALISATION
Toronto, 28 October 2014 - Minco plc (AIM - "MIO") (the
"Company"), is pleased to announce multiple intersections of
massive sulphide mineralization with grades as high as 26.05%
combined zinc, copper and lead over 1.45 metres from its 2014, four
hole, 556 metre, exploration drilling programme on its
zinc/copper/lead VMS project in Buchans, central Newfoundland,
Canada.
The four holes are located on the southern side of the planned
open pit for the Lundberg resource, as defined in the positive
Preliminary Economic Assessment ("PEA") completed in 2011, and were
designed to test for the possible extensions of two massive
sulphides horizons called Lucky Strike and Engine House that were
subject to historic mining operations prior to the Buchans mine
closing in 1984.
The drilling results now confirm extensions to these massive
sulphide horizons, with 2 of the 4 holes (14-3487 & 14-3488)
intersecting high-grade mineralization at the relatively shallow
Lucky Strike horizon and 3 of the 4 holes (14-3488, 14-3489 &
14-3491) successfully intersecting the deeper Engine House horizon,
situated 40 to 50 metres below the Lucky Strike horizon.
Hole 14-3487 intersected the Lucky Strike horizon at a depth of
53 metres, where it intersected 2.70 metres assaying 6.07% Zn,
0.53% Cu, 3.27% Pb, 103.5 g/t Ag and 1.65 g/t Au.
Hole 14-3488 intersected 4.80 metres of 3.30% Zn, 0.22% Cu,
1.43% Pb and 118.7 g/t Ag at a depth of 65 metres, including an
intercept of 0.80 metres of 16.80% Zn, 0.75% Cu, 7.40% Pb, 518 g/t
Ag and 3.54 g/t Au (24.95% combined zinc, copper and lead).
Hole 14-3488 also intersected 7.80 meters averaging 3.43% Zn,
1.85% Cu, 1.30% Pb, 22.9 g/t Ag, including 1.45 m of massive
sulphides assaying 17.00% Zn, 2.51% Cu, 6.54% Pb, 92.5 g/t Ag
(26.05% combined zinc, copper and lead) at the top of the Engine
House horizon, between 105 and 113 metres depth.
Hole 14-3491 intersected 3.30 metres averaging 1.23% Zn, 3.29%
Cu, 1.00% Pb and 12.59 g/t Ag, including 0.45 m assaying4.75% Zn,
12.50% Cu, 4.50% Pb and 45.10 g/t Ag (21.75% combined zinc, copper
and lead), also in the Engine House horizon.
These Engine House intercepts are considered particularly
encouraging as they confirm potential exists for high-grade massive
sulphides at this deeper and less well explored horizon in close
proximity to the Lundberg deposit. These three holes now confirm
Minco's interpretation that the Engine House horizon continues down
dip to the west of Indicated resources defined within the current
Lundberg Resource estimate (Technical Report dated April 26, 2013).
The Engine House horizon was previously considered to be almost
entirely composed of lower grade stockwork sulphide mineralization
and has been largely ignored by historic drilling that focused
almost exclusively on the shallower Lucky Strike horizon.
In addition, Hole 14-3489 was continued to greater depths below
the Engine House to test a deeper horizon referred to as the Ore
Clast horizon and returned a 1 metre intercept assaying 2.31 % Zn,
0.08% Cu, 1.49% Pb, 24.6 g/t Ag and 0.47 g/t Au within what may be
a faulted repeat of the Lucky Strike horizon. Little is known about
the Ore Clast horizon, as it remains poorly tested by a limited
number of widely spaced historic drill holes. One such historic
hole drilled by Asarco in 1939, H-302, intersected 5.27 metres
averaging 3.43% Zn, 1.98% Cu, 3.27% Pb, 19.46 g/t Ag, and 0.48 g/t
Au (historic assays) approximately 215 metres below surface. Minco
is encouraged by these deeper intercepts as they suggest potential
exists for structurally repeated ore bodies at depths below
previous mining.
A summary of assay results is presented in the table below and
maps and an interpretive cross-section are available at the
Company's website at www.mincoplc.com. .
Hole from to length Zn Cu Pb Ag Au Cu+Pb+Zn
(m) (m) (m)* (%) (%) (%) (g/t) (g/t) (%)
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
H-14-3487
-------------------- ------- ------- ------ ------ ----- ------- ------- ---------
Lucky
Strike 52.85 55.55 2.70 6.07 0.53 3.27 103.5 1.65 9.87
52.85 53.85 1.00 7.90 0.48 3.60 98.1 1.98 11.98
53.85 54.85 1.00 5.12 0.54 3.20 154.2 2.07 8.86
54.85 55.55 0.70 4.82 0.59 2.90 38.6 0.59 8.31
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
H-14-3488
-------------------- ------- ------- ------ ------ ----- ------- ------- ---------
Lucky
Strike 64.75 69.55 4.80 3.30 0.22 1.43 118.7 0.81 4.95
including 64.75 65.55 0.80 16.80 0.75 7.40 518.0 3.54 24.95
65.55 66.55 1.00 0.58 0.04 0.31 8.5 0.06 0.93
66.55 67.55 1.00 0.24 0.03 0.24 3.6 0.02 0.51
67.55 68.55 1.00 0.43 0.05 0.16 14.5 0.31 0.64
68.55 69.55 1.00 1.16 0.34 0.23 128.9 0.64 1.73
Engine
House 105.00 112.80 7.80 3.43 1.85 1.30 22.9 0.14 6.58
including 105.35 106.80 1.45 17.00 2.51 6.54 92.5 0.64 26.05
105.00 105.35 0.35 0.92 0.55 0.65 10.2 0.07 2.12
105.35 106.10 0.75 22.50 1.51 7.60 83.2 0.68 31.61
106.10 106.80 0.70 11.10 3.59 5.40 102.5 0.59 20.09
106.80 107.80 1.00 0.40 0.12 0.17 7.9 0.03 0.69
107.80 108.80 1.00 0.24 0.23 0.06 1.5 0.00 0.53
108.80 109.80 1.00 0.16 1.89 0.02 4.6 0.01 2.07
109.80 110.80 1.00 0.48 5.88 0.12 14.3 0.03 6.48
110.80 111.80 1.00 0.37 1.94 0.03 5.7 0.01 2.34
111.80 112.80 1.00 0.15 0.50 0.02 6.8 0.06 0.67
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
H-14-3489
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
Lucky
Strike 108.00 109.00 1.00 1.36 0.10 0.31 6.00 0.05 1.77
Engine
House 135.75 136.25 0.50 0.41 0.16 0.25 66.00 0.68 0.82
Ore
Clast
Zone 163.35 163.95 1.00 2.31 0.08 1.49 24.60 0.47 3.88
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
H-14-3491
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
Lucky
Strike 81.00 84.50 3.50 2.47 0.15 1.32 20.86 0.27 3.94
including 81.85 84.50 2.65 2.88 0.15 1.58 23.83 0.31 4.61
81.00 81.85 0.85 1.22 0.13 0.51 11.60 0.16 1.86
81.85 82.50 0.65 4.43 0.23 2.12 18.70 0.34 6.78
82.50 83.50 1.00 0.90 0.13 0.43 33.20 0.17 1.46
83.50 84.50 1.00 3.84 0.12 2.39 17.80 0.10 6.35
Engine
House 111.70 115.00 3.30 1.23 3.29 1.00 12.59 0.02 5.52
including 111.70 113.10 1.40 1.92 6.35 1.70 20.88 0.03 9.98
111.70 112.15 0.45 4.75 12.50 4.50 45.10 0.01 21.75
112.15 112.85 0.70 0.17 0.89 0.13 2.70 0.05 1.18
112.85 113.10 0.25 1.72 10.60 1.09 28.20 0.01 13.41
113.10 114.00 0.90 0.70 0.51 0.47 3.90 0.01 1.68
114.00 115.00 1.00 0.76 1.50 0.49 8.80 0.00 2.75
----------- ------- ------- ------- ------ ------ ----- ------- ------- ---------
* True widths estimated to be 94% of reported core lengths.
Hole 14-3490 was abandoned due to drilling problems.
Background:
Minco's 2014 drilling programme was designed to test for
extensions to the former Lucky Strike and Engine House sulphide
orebodies beyond previous workings. A significant portion of the
tonnage historically mined by Asarco came from the Lucky Strike
orebody where Asarco mined 5.6 Mt averaging 18.4% Zn, 8.6% Pb, 1.6%
Cu, 112 g/t Ag & 1.7 g/t Au. Minco's program is part of an
assessment of an area located about 200 metres from the southern
limits of former mine workings (See "Lucky Strike Target Area",
Map). Minco last drilled the Lucky Strike Horizon in this location
in
2012. At that time, vertical drill hole H-12-3453 intersected
2.0 metres averaging 22.7% Zn, 4.05% Cu, 11.5% Pb, 230 g/t Ag and
1.33 g/t Au between 29.2 and 31.2 m vertical depth.
Re-logging of archived drill cores by Minco during its summer
2014 exploration program suggests high-grade massive sulphide
mineralization at the Lucky Strike horizon may occur in this area
at shallow depths beneath a shallow, south-dipping fault structure.
This work also indicated that this mineralization may be more
continuous than previously thought; as historic, small-core
diameter drilling intersected high-grade massive sulphides with
poor core recoveries.
In addition, Minco's re-logging also confirmed that stockwork
sulphide mineralization associated with the Engine House horizon
remained open down dip to the west. As a result, select 2014 drill
holes were drilled to also test this deeper, historically poorly
tested sulphide horizon, with Holes 14-3488 and 14-3491 extending
below the Lucky Strike horizon to intersected high-grade massive
sulphides at the top of the Engine House horizon.
As a result of these new massive sulphide intercepts at the
Engine House horizon, Minco has assigned a higher priority to the
Engine House horizon for discovery of high-grade massive sulphides
beneath depths previously tested by historic drilling.
In addition, even deeper drilling to test a possible
fault-repeat of the Lucky Strike horizon below the Engine House
horizon has returned new encouraging results on what has been named
the "Ore Clast horizon", indicating that further exploration of
this deeper, poorly tested horizon is warranted.
BUCHANS BACKGROUND - LUNDBERG DEPOSIT AND THE BUCHANS
EXPLORATION PROJECT
The Buchans project represents one of Minco's several advanced
volcanogenic massive sulphide ("VMS") base metal projects located
within the Buchans area of central Newfoundland, where Minco has
interests in several base metal deposits.
The Buchans project hosts the former Buchans mine, where between
1928 and 1984 the American Smelting and Refining Company ("Asarco")
mined 16.2 million tonnes averaging 14.51% Zn, 1.33% Cu, 7.56% Pb,
126 g/t Ag & 1.37 g/t Au, in a series of separate zones,
including Lucky Strike, from the insitu massive sulphide and
transported breccia sulphide ores. These operations established
Buchans as one of the richest, historic base metal mining camps in
Canada.
The Lundberg deposit, which encompasses footwall stockwork
sulphide mineralization to both the Lucky Strike and Engine House
massive sulphide horizons, represents a large lower grade deposit
being evaluated for open pit mine development and was the subject
of a Preliminary Economic Assessment completed in 2011. Drilling by
Minco in 2012, resulted in the Company upgrading the Lundberg
resource to include a NI 43-101 compliant Indicated resources
totaling 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, and Inferred resources of 4.3 million
tonnes grading 1.29% Zn, 0.54% Pb, 0.27% Cu, 4.47 g/t Ag and 0.08
g/t Au using a NSR cut-off of $US15 per tonne (see Technical Report
dated April 26, 2013 for more complete disclosure).
Minco continues to work towards bringing the project to
pre-feasibility while also continuing to explore for new high-value
discoveries within its properties in the Buchans area of central
Newfoundland. The 2014 drilling program was undertaken primarily to
assess the potential for discovery of new high-grade massive
sulphides, similar to the historic Asarco deposits, south and west
of Lundberg, and the results have confirmed that potential which
remains open both down-dip to the west and at depth.
QUALIFIED PERSON
Paul Moore, M.Sc., P.Geo., (NL), Vice President of Exploration
of Buchans Minerals (a wholly-owned subsidiary of Minco), a
Qualified Person within the meaning of National Instrument 43-101,
supervised the 2014 drill program and has reviewed the technical
contents of this release for accuracy.
SAMPLING PROCEDURE
Drill cores were logged and sampled by Minco's geological and
technical staff with cores descriptively logged on site, aligned,
marked for sampling and split longitudinally using a diamond saw.
Samples consist of halved NQ-size core (47.6 mm diameter core) with
the remaining half of the core preserved in core boxes for future
reference. As part of Minco's' QAQC protocols, samples were bagged,
tagged, sealed and delivered directly to Eastern Analytical
Limited's laboratory in Springdale, Newfoundland, by Minco
personnel. Samples are nominally one metre in length, except where
specific geologic parameters required a different interval be
sampled. Sample preparation was completed by Eastern Analytical
with each sample crushed to approximately -10 mesh and split using
a riffle splitter to approximately 300 g. Each sample split was
pulverized using a ring mill to approximately 98% -150 mesh. In
addition to regular samples, blank samples (one per 20 samples) and
certified standards (one per 20 samples) were also submitted for
sample preparation and assay.
All assays were completed by Eastern Analytical of Springdale
Newfoundland by the inductively coupled plasma method (ICP-30) for
base metals (Cu, Pb, Zn) and to Ore Grade Assay Cu, Pb and Zn if
upper detection limits by ICP were exceeded for either element
(upper detection limits; Cu 10,000 ppm, Pb 2,200 ppm, Zn 2,200
ppm). ICP analyses were completed using a 0.500 g sample digested
in nitric and hydrochloric acid and analyzed by ICPOES (Inductively
Coupled Plasma Optical Emission Spectroscopy). Base metal Ore Grade
Assays (Cu, Pb, Zn) were completed using a 0.200 g sample digested
in nitric and hydrochloric acid and analyzed by the atomic
absorption (AA) method. Silver assays were completed using a 1,000
mg sample digested in hydrochloric and nitric acid and analyzed by
AA (Atomic Absorption spectroscopy). Gold assays were completed by
standard 1/2 assay ton fire assay using the AA method.
ABOUT MINCO PLC
Minco Plc, registered 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 a manganese project in New Brunswick, Canada.
The Company also has interests in zinc-silver projects in Mexico
through its holding of 30 million shares (approximately 26%) in
Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-"XAG").
Minco also holds a 2% NSR royalty on the Curraghinalt gold
property in Northern Ireland, currently being explored by Dalradian
Resources Inc. (TSX-"DNA").
For further information, including a map of the "Lucky Strike
Target Area" showing general location of the drill holes, please
refer to Minco's website at www.mincoplc.com or contact:
Warren MacLeod: Director, President +1 709 725
Buchans Minerals 0555
John Kearney: Chairman and Chief +1 416 362
Executive 6686
+44 (0) 8452
Danesh Varma: CFO & Company Secretary 606 034
+353 (0) 46
Peter McParland: Director - Ireland 907 3709
John Frain/Alan Connolly: (NOMAD)
Davy +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) +44 (0) 20
Broker, Beaufort Securities 7382 8415
This information is provided by RNS
The company news service from the London Stock Exchange
END
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