Xtierra Drilling Update (8127W)
February 03 2012 - 11:57AM
UK Regulatory
TIDMMIO
RNS Number : 8127W
Minco PLC
03 February 2012
XTIERRA PROVIDES UPDATE ON DRILLING & FEASIBILITY STUDY AT
BILBAO
Dublin, 3 February, 2012 - Minco Plc (AIM-"MIO"), the Irish
exploration and development company, is pleased to provide an
update on a drilling programme being carried out by Canadian based
associate, Xtierra Inc., on Xtierra's Bilbao project in the State
of Zacatecas, Mexico. A planned 2,500 metre programme comprising
six holes of NQ core drilling commenced on November 19, 2011 with a
three week break over Christmas. To the end of January 2012,
approximately 1,400 metres had been completed in 3 holes with a
fourth hole in progress and analytical results received for holes
X-96 and X-100.
The drilling is designed to test a zone of high grade silver
veins and silver-enriched, brecciated, manganiferous limestone
encountered in an earlier drill programme carried out in 2011
(refer earlier press releases). The zone of enriched silver
mineralisation associated with the brecciated limestone occurs at a
depth of about 200 metres lying beneath about 100 metres of
sedimentary and volcanic rocks, capped by basaltic flows and
situated immediately above the often skarnified contact with the La
Blanca granite batholith. The mineralisation appears to be
strataform with the limestone stratigraphy and has a currently
known areal extent of about 300 metres by 200 metres but remains
open in three directions as well as to depth.
Hole X-96 has intersected a 5.1 metre (true thickness) zone from
227.45 metres to 232.55 metres with an average grade of 373.0g/t
silver and has effectively extended the mineralised zone by a
further 110 metres to the south of that previously delineated. Hole
X-100, located about 75 metres to the southeast of X-96 encountered
higher grade but narrower intersections of silver mineralisation,
including 810.0g/t silver over 1.0 metre, as well as a 5.0 metre
intersection averaging 31.7 g/t silver from 281.0 metres to 286.0
metres.
The zone of silver mineralisation remains open to the southwest,
south and east and is situated approximately 200 metres to the
south of the main Bilbao silver-lead-zinc deposit upon which DRA
Americas is completing a bankable feasibility study on behalf of
Xtierra. The drilling is ongoing and will be expanded to fully
evaluate the additional resource potential and to determine the
relationship of the high grade silver zone with the main Bilbao
silver-zinc-lead-copper deposit.
Commenting on the drilling results, Xtierra's President and CEO,
Terence McKillen, said, "We continue to see potential for
increasing the resource base at Bilbao and will continue the
drilling programme to test the limits of the mineralising systems.
In the meantime, significant progress has been made with respect to
the metallurgical test work and other component parts of the
ongoing feasibility study which we expect to be completed by
mid-year."
Analytical Method
Samples from half-core were prepared at the Stewart Group
laboratory in Zacatecas and initially analyzed for 38 element
content using ICP-MS (inductively coupled plasma - mass
spectrometry) by the Stewart Group (Eco-Tech Laboratory) in
Kamloops, British Columbia. Values exceeding the limits of
detection are automatically re-analyzed by Fire Assay or Atomic
absorption spectrometry (AAS) methods respectively. Standards and
blanks were used regularly for quality control.
Hole X-96
----------------------------------------------------------------------
From To Width Ag Au Pb Zn Cu Mn
(m) (m) (m) (g/t) (g/t) (%) (%) (%) (%)
------- ------- ------ ------- ------- ----- ----- ----- -----
216.95 218.00 1.05 75.00 - 0.03 0.11 0.01 0.92
------- ------- ------ ------- ------- ----- ----- ----- -----
218.00 219.00 1.00 33.70 - 0.11 0.10 0.01 1.39
------- ------- ------ ------- ------- ----- ----- ----- -----
219.00 220.00 1.00 18.35 - 0.01 0.02 - 1.38
------- ------- ------ ------- ------- ----- ----- ----- -----
220.00 221.00 1.00 74.00 - 0.01 0.03 - 1.32
------- ------- ------ ------- ------- ----- ----- ----- -----
216.95 221.00 4.05 50.60 - 0.04 0.04 0.01 1.25
------- ------- ------ ------- ------- ----- ----- ----- -----
227.45 228.00 0.55 126.00 0.01 0/09 0.07 0.01 3.04
------- ------- ------ ------- ------- ----- ----- ----- -----
228.00 229.00 1.00 615.00 0.01 0.21 0.21 0.03 4.38
------- ------- ------ ------- ------- ----- ----- ----- -----
229.00 230.00 1.00 454.00 0.01 0.12 0.16 0.02 4.25
------- ------- ------ ------- ------- ----- ----- ----- -----
230.00 231.00 1.00 273.00 0.02 0.06 0.09 0.01 4.59
------- ------- ------ ------- ------- ----- ----- ----- -----
231.00 232.00 1.00 163.00 0.01 0.05 0.13 - 4.61
------- ------- ------ ------- ------- ----- ----- ----- -----
231.00 232.55 0.55 592.00 0.03 0.30 0.05 0.02 2.08
------- ------- ------ ------- ------- ----- ----- ----- -----
227.45 232.55 5.10 372.53 0.07 0.13 0.13 0.02 4.05
------- ------- ------ ------- ------- ----- ----- ----- -----
242.50 243.00 0.50 66.30 - 0.05 0.17 - 0.04
------- ------- ------ ------- ------- ----- ----- ----- -----
243.00 244.00 1.00 59.70 0.01 0.04 0.14 0.01 0.02
------- ------- ------ ------- ------- ----- ----- ----- -----
242.50 244.00 1.50 61.90 - 0.04 0.15 0.01 0.26
------- ------- ------ ------- ------- ----- ----- ----- -----
Hole X-100
-------------------------------------------------------------------------------
From (m) To (m) Width (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%)
--------- ------- ---------- --------- --------- ------- ------- -------
221.40 221.95 0.55 31.10 0.03 0.15 0.32 0.01
--------- ------- ---------- --------- --------- ------- ------- -------
225.00 226.00 1.00 810.00 0.03 0.22 0.29 0.03
--------- ------- ---------- --------- --------- ------- ------- -------
256.70 257.00 0.30 56.70 - 0.17 0.14 -
--------- ------- ---------- --------- --------- ------- ------- -------
271.80 272.25 0.45 101.00 0.12 0.05 2.32 0.96
--------- ------- ---------- --------- --------- ------- ------- -------
281.00 282.00 1.00 36.90 - - 0.05 1.13
--------- ------- ---------- --------- --------- ------- ------- -------
282.00 282.90 0.90 31.90 0.12 0.03 3.28 0.86
--------- ------- ---------- --------- --------- ------- ------- -------
282.90 283.75 0.85 6.30 - 0.01 0.09 0.06
--------- ------- ---------- --------- --------- ------- ------- -------
283.75 284.25 0.50 18.10 0.10 0.01 0.12 0.52
--------- ------- ---------- --------- --------- ------- ------- -------
284.25 285.00 0.75 57.20 1.30 0.07 0.02 0.08
--------- ------- ---------- --------- --------- ------- ------- -------
285.00 286.00 1.00 35.70 0.19 0.13 0.10 0.03
--------- ------- ---------- --------- --------- ------- ------- -------
281.00 286.00 5.00 31.70 0.27 0.04 0.65 0.46
--------- ------- ---------- --------- --------- ------- ------- -------
328.55 329.00 0.45 34.70 0.01 0.91 0.99 0.11
--------- ------- ---------- --------- --------- ------- ------- -------
335.00 336.00 1.00 67.40 0.05 0.10 0.05 0.01
--------- ------- ---------- --------- --------- ------- ------- -------
Feasibility Study
In July 2010, Xtierra retained Dowding, Reynard and Associates
(DRA Americas), a recognized leader in the field of mine design,
mine engineering, mineral process design, project management and
mine construction to oversee and complete the Bilbao Feasibility
Study. DRA is involved in oversight of all of the component parts
of the feasibility study. DRA is managing the metallurgical test
work associated with the near-surface oxide ore as well as the
sulphide and sulphide/oxide (mixed) ores. Golder Associates have
been retained to advise on tailings disposal design work.
Preliminary mine plans for the proposed open pit and underground
areas have been completed and a 3D modelling analysis of the
underground design has been commissioned. This analysis will serve
to provide optimum stope dimensions resulting in safer and more
stable ground conditions. Geotechnical, hydrogeology and electrical
power distribution infrastructure studies have been completed.
Final tailings management design and the completion of the
environmental impact study (EIS) require completion of
metallurgical test work providing all the necessary input data.
Metallurgical test work of the past 12-18 months has been
dominantly focused on the definition and optimisation of a flow
sheet for the near surface oxide portion of the deposit with good
technical success in terms of extraction of the contained zinc,
copper and gold but requiring further work to optimise the recovery
of lead and silver. More recently, test work has focused on the
flotation flow sheet for the sulphide and mixed sulphide-oxide
(Transition) mineralisation. Final locked cycle test work is
expected to be completed by the end of this month producing the
necessary data inputs for final tailings disposal design, EIS and
preliminary economic assessment.
About Minco
Minco PLC is an AIM quoted precious and base metals exploration
and development company, engaged in zinc-lead exploration in
Ireland, in proximity to the Galmoy and Tara mines, and with
investments in zinc--silver projects in Mexico through holding 30
million shares in Xtierra Inc. listed on the TSX Venture Exchange
(Toronto) under the symbol "XAG". Minco also holds a 2% NSR royalty
on the Curraghinalt gold property in Northern Ireland which is
being explored by Dalradian Resources Inc.
Minco currently holds US$20 million in cash and is evaluating a
number of investment opportunities in the mineral industry in North
America and Europe.
There are 349,999,988 shares of Minco issued and
outstanding.
For further information, www.minco.ie
or contact:
+1 416 362
John Kearney: Executive Chairman 6686
+1 416 362
Terence McKillen: Chief Executive 8243
+44 (0) 8452
Danesh Varma: CFO & Company Secretary 606 034
Minco - Ireland Contact: Peter +353 (0)46
McParland | Maria Flood 907-3709
John Frain/Fergal Meegan: (NOMAD)
Davy +353 (0)1 6796363
Barry Gibb/ Saif Janjua: (Corporate +44 (0)20 7930
Advisor | Broker) Beaufort International 8222
This information is provided by RNS
The company news service from the London Stock Exchange
END
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