TORONTO, April 17, 2015 /CNW/ - Minco plc (AIM - "MIO") (the "Company"), is pleased to announce an eleven hole, 2,100 metre, exploration drilling programme in Buchans, central Newfoundland, Canada.
The drilling program, located immediately south of the former site of the Lucky Strike massive sulphide mine, is expected to take eight weeks to complete and will include a minimum of eight new holes plus deepening of three existing holes. All holes will target areas where potential exists to discover new high-grade resources.
Drilling will test for possible extensions to three, stacked, high-grade mineralized horizons, including the Lucky Strike horizon (massive sulphides down dip of the former Lucky Strike orebody), the slightly deeper and locally high-grade Engine House horizon, and the still deeper, fragmental Ore Clast horizon.
The drill targets have been selected to follow up on drilling undertaken by Minco in October 2014. Results from that program indicate potential exists for discovery of significant high-grade sulphide mineralization in this area, beneath a shallow, south-dipping fault structure. (See Minco Press Release October 28, 2014).
All proposed holes are located approximately 200 metres south of former Lucky Strike mine workings where 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, before closing the Buchans mine in 1984. The current program will explore for additional mineralization adjacent to the former Lucky Strike orebody and immediately south of the Company's Lundberg deposit.
Drilling by Minco in 2014 returned several impressive intersections from multiple stratigraphic horizons (Minco Press Release October 28, 2014). Highlights previously reported include:
- Hole 14-3487 that intersected the Lucky Strike horizon at a depth of 53 metres over an intercept of 2.70 metres of massive sulphides assaying 6.07% Zn, 0.53% Cu, 3.27% Pb, 103.5 g/t Ag and 1.65 g/t Au;
- Hole 14-3488 that intersected the Lucky Strike horizon at a depth of 65 metres over an intercept of 4.80 metres assaying 3.30% Zn, 0.22% Cu, 1.43% Pb and 118.7 g/t Ag and 0.81 g/t Au, including 0.80 metres of massive sulphides assaying 16.80% Zn, 0.75% Cu, 7.40% Pb, 518 g/t Ag and 3.54 g/t Au;
- Hole 14-3488 also intersected mineralization at the Engine House horizon between 105 and 113 metres over an intercept of 7.80 metres averaging 3.43% Zn, 1.85% Cu, 1.30% Pb, 22.9 g/t Ag, and 0.14 g/t Au including 1.45 m of massive sulphides assaying 17.00% Zn, 2.51% Cu, 6.54% Pb, 92.5 g/t Ag, and 0.64 g/t Au.
- Hole 14-3491 also intersected the Engine House horizon over an intercept of 3.30 metres averaging 1.23% Zn, 3.29% Cu, 1.00% Pb and 12.59 g/t Ag and 0.02 g/t Au, including 0.45 m assaying 4.75% Zn, 12.50% Cu, 4.50% Pb and 45.10 g/t Ag and 0.01 g/t Au.
Compilation and re-logging of historic drill holes by Minco in 2014 also identified significant intercepts within the deeper Ore Clast horizon that will be tested by the 2015 drilling programme.
This deeper horizon may represent a faulted repeat of the Lucky Strike horizon and hosts significant historic intercepts of fragmental sulphide mineralization located beneath previous mine workings. Historic intercepts include 5.27 metres assaying 1.98% Cu, 3.27% Pb, 3.43% Zn, 19.46 g/t Ag, 0.48 g/t Au in historic hole H-302 (historic assays), as well as 1.83 metres assaying 0.88% Cu, 1.18% Pb, 5.60% Zn, 92.0 g/t Ag, 8.9 g/t Au, in historic hole H-394 (historic assays).
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 current programme.
BUCHANS PROJECT BACKGROUND
The Buchans project represents one of several of Minco's advanced volcanogenic massive sulphide ("VMS") base metal projects within central Newfoundland. Minco's interests in deposits in the region include 100% interest in the Lundberg, Daniels Pond, and Bobbys Pond deposits, as well as 49% interest in the Tulks Hill deposit.
The current 2015 drilling programme at Lucky Strike South is located within Minco's 100%-owned Buchans project, comprised of 5,870 ha covering most of the past producing Buchans mines where 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 between 1928 and 1984 from insitu massive sulphide and transported breccia sulphide ores. These operations established Buchans as one of Canada's richest, historic base metal mining camps.
Minco's Lundberg deposit is the most advanced undeveloped deposit in the district and consists of a large lower grade resource being evaluated for open pit mine development. The 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, and 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 March 4, 2013 for more complete disclosure).
Minco continues to work towards advancing the Lundberg project to pre-feasibility, while also continuing to explore for new high-value discoveries within its properties in the Buchans area of central Newfoundland.
Paul Moore, M.Sc., P.Geo., (NL), Vice President of Exploration of Buchans Minerals, a Qualified Person within the meaning of National Instrument 43-101, is supervising the 2015 drill program and has reviewed the technical contents of this release for accuracy.
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").
SOURCE Minco plc
For further information: For further information, including a map of the proposed drilling, please refer to Minco's website at www.mincoplc.com or contact: Warren MacLeod: Director, President Buchans Minerals, +1 709 725 0555; Danesh Varma: CFO & Company Secretary, +44 (0) 8452 606 034; Peter McParland: Director - Ireland, +353 (0) 46 907 3709; John Frain/Alan Connolly: (NOMAD) Davy, +353 (0)1 6796363; Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities), +44 (0) 20 7382 8415