TIDMMIO
RNS Number : 4795G
Minco PLC
30 May 2017
MINCO REPORTS INTERIM FINANCIAL RESULTS FOR THE FIRST QUARTER OF
2017 AND PROVIDES AN UPDATE ON OPERATIONS
Dublin, 30 May 2017 - Minco Plc (AIM - "MIO") ("Minco" or the
"Company") is pleased to announce its interim financial results and
the results of its development activities for the three-month
period ended 31 March 2017.
This news release should be read in conjunction with the
Company's unaudited financial statements and the associated
management's discussion and analysis (MD&A) for the first
quarter ended 31 March 2017 which are available on the Company's
website at www.mincoplc.com, under the "Financials" section, or
under the Company's profile on SEDAR (www.sedar.com).
FINANCIAL RESULTS FOR FIRST QUARTER OF 2017
The Company recorded no revenue in the three-month periods ended
31 March 2017 or 31 March 2016.
For the three-month period ended 31 March 2017, the Company
recorded a loss of $219,000 compared to a loss of $426,000 for the
same period ended March 31, 2016. The loss for the three-month
period ended 31 March 2017 included a foreign exchange loss of
$32,000 compared to a foreign exchange loss of $159,000 for the
same period ended 31 March 2016.
At March 31, 2017, Minco held $2,006,000 (2016- $2,351,000) in
cash and cash equivalents and had a working capital surplus of
$1,585,000, compared to a working capital surplus of $1,935,000 at
December 31, 2016.
During the period ended 31 March 2017, Minco invested $150,000
(2016-$133,000) on exploration of its mineral properties, of which
the largest amounts were expended on the Buchans Minerals zinc-lead
project in central Newfoundland.
BUCHANS BASE METAL EXPLORATION
During 2016, Minco focussed 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
In the first quarter of 2017, Minco continued its program of
relogging of historic archived drill cores to assess potential for
discovery of additional high-grade resources near the Lundberg
deposit. Several target areas have been identified and will be
further investigated by relogging and possibly diamond drilling in
2017.
CENTRAL NEWFOUNDLAND BASE METAL PROJECTS
During 2016, Minco, through its wholly owned subsidiary Buchans
Minerals Corporation ("Buchans Minerals"), in a collaboration
agreement with Canadian Zinc Corporation (TSX:CZN) ("Canadian
Zinc") successfully completed a research programme to evaluate the
metallurgical characteristics of their respective volcanogenic
massive sulphide ("VMS") Zn-Pb-Cu-Ag-Au base metal deposits in
central Newfoundland.
The metallurgical research study demonstrated that the ore from
Minco's Lundberg, Daniels Pond and Bobbys Pond deposits can be
successfully processed in a central mill using a sequential
flotation flowsheet, and that selective zinc, lead and copper
concentrates at marketable grades can be produced from these
deposits.
The economic assessment portion of the program applied a process
simulation and cost assessment model (conceptual economic
modelling) to evaluate and identify the key factors impacting the
operating economics of a centralized processing concept for the
production of the base metal concentrates. Multiple conceptual
economic scenarios at three potential sites were developed to
simulate the proposed centralized milling concept. The variables
assessed included the different potential mill sites, with or
without Dense Media Separation, new or used process equipment,
mining rate, and processing feedstock composition for each deposit.
The outcome of this economic assessment was successful in
identifying several optimum scenarios, all of which depend on the
majority of the feed coming from the larger lower grade Lundberg
deposit with supplemental feed coming from the smaller higher grade
satellite deposits.
LAKE DOUGLAS, NEWFOUNDLAND - GOLD
In October of 2016, Minco, through its wholly-owned subsidiary,
Buchans Minerals Corporation, competitively staked 2,075 hectares
in central Newfoundland, known as the Lake Douglas project, located
40 km southwest of Minco's Buchans project and 20 km southwest of
Minco's Daniels Pond and Bobbys Pond deposits.
Minco's property covers a 3.5 km segment of the prospective
trend that is located northeast, along strike of Marathon Gold
Corporation's (TSX:MOZ) Valentine Lake project, where Marathon has
announced a Measured and Indicated mineral resource estimate of
21.8 million tonnes at an average grade of 1.84 grams of gold per
tonne containing 1,292,800 ounces of gold and an Inferred mineral
resource of 8.8 million tonnes at an average grade of 1.98 grams of
gold per tonne containing 562,600 ounces of gold (Marathon Gold
Corporation, February 21, 2017) as a potential open pit resource
development.
The Marathon Deposit sits in a near vertical mineralized
corridor that contains consistent stacking of en-echelon vein
swarms for more than 500- meters depth. The Marathon Deposit
consists of a 40 to 100-meter wide, near vertical corridor of
alteration and mineralization that is open along strike and to
depth, and hosts flat laying, en-echelon
quartz-tourmaline-pyrite-gold bearing vein arrays. The thickness
and grades of these vein arrays varies throughout the mineralized
corridor. Current drilling has defined a mineralized corridor that
has a 150-meter long strike length at 100 meters below surface, and
this strike length increases to more than 400 meters at 200 meters
below surface.
In April 2017, Marathon announced the results of two deep holes
which demonstrate the potential for deep gold mineralization.
Marathon continues to aggressively explore its Valentine Lake
property to continue expanding the resources at the Marathon
Deposit and has initiated a 30,000 metre drilling programme for
2017.
Since acquiring the Lake Douglas property Minco conducted
limited initial reconnaissance work on the claims prior to the
onset of winter weather. Minco intends to maintain the property and
consider additional work as may be warranted in response to
increased activity and attention to this new exploration area.
LEAD-ZINC EXPLORATION, MOATE, COUNTY WESTMEATH, IRELAND
Minco's 2016-2017 drill programme at Moate consisted of 13 holes
completed between September 2016 and January 2017 for a total of
1299m. Drilling was concentrated in two areas centred on the
townlands of Knockanea-Fardrum (PL 1229) and Tully (PL 1228). 942m
were drilled on PL 1229 and 357m on PL 1228. Minco's drilling
programme initially focused within PL 1229 on the southwestern
three kilometres of the target area, adjacent the east northeast
striking Moyvoughly Fault where five holes (1229-35 to 1229-39)
were drilled for a total of 700 metres. Reef-derived breccias
comparable to those at Tynagh were intersected confirming the
geological model, and in Holes 1229-38, 39 and 40 the breccias
contain widespread trace amounts of disseminated sphalerite.
Drilling in the Tully area has defined a major west northwest
striking cross fault off-setting the Moyvoughly Fault and the
proposed Tynagh-Ballinalack basement structure. There is evidence
that the cross fault is also a regional structure, localised by
basement structure. The strike of the cross-fault swings from west
northwest to east-west over a strike length of 1.5 kilometres where
it offsets the Tynagh-Ballinalack trend. The structural pattern is
comparable to the setting of the Silvermines where the
zinc-lead-barite deposits are localised north of an east-west
striking flexure of a regional east northeast fault
The 2016-2017 drill programme at Moate has confirmed the
geological model and enhanced exploration potential. The geological
structure has proven more complicated than expected as the
Moyvoughly Fault was not intersected in the drilling programme. The
Moyvoughly Fault is believed to have been straddled by the drilling
and to have a reversed throw of approximately 150m. To the
northeast, on PL 1228, previous drilling indicates the Moyvoughly
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.
A second phase of drilling, comprised of 13 holes totalling
2600m, has been recommended to explore these targets in 2017.
ZINC EXPLORATION - NAVAN, COUNTY MEATH, IRELAND - JOINT VENTURE
WITH TARA BOLIDEN
Minco, through its wholly owned subsidiary Westland Exploration
Ltd, holds a 20% interest in Prospecting Licence 1440R, which is
being explored under a Joint Venture with Boliden Tara Mines
Limited (80%), and which hosts part of the Tatestown-Scallanstown
zinc lead mineral deposit.
The Tatestown-Scallanstown deposit, with a resource of 2.4
million tonnes averaging 7.31% zinc plus lead, is located 1.5
kilometres to the northwest of Boliden's large Tara zinc lead mine
at Navan and straddles the Blackwater River, which forms the
licence boundary between prospecting Licences 1440R and PL 1496
(100% Tara).
During 2016, Tara Boliden, Operator of the JV, completed an
infill drilling programme of four drill holes between and
peripheral to existing resource blocks on PL 1440R. Potentially
economic grades and widths were intersected in all four of these
holes. During the first quarter of 2017, a further four holes were
completed, with all four holes intersecting economic grade
mineralisation over widths between two and nine metres. The
drilling confirms the continuity of the deposit and the very
widespread nature of mineralisation in this area.
The Tatestown-Scallanstown deposit is centered on the east-west
Tatestown Fault and lies within a well-defined, two-kilometre wide,
north-south trending, zone of mineralisation, which is a peripheral
extension of the large Navan mineralised system. Traced by
drilling, this extends north-south for four kilometres, terminated
to the south by the Randalstown Fault, which separates it from the
main body of the Navan mineralisation, and to the north by the
Boolies Fault, a major reverse fault with a throw of around 400m
identified by recent seismic surveying.
On PL 1440R, the northern two kilometres of the north-south
trending zone remains essentially unexplored, with just four,
widely spaced intercepts comparable to those peripheral to the
known deposit. A second east-west fault, parallel to the Tatestown
Fault, is indicated by drilling cutting this area suggesting
potential for higher grades and widths similar to those adjacent to
the Tatestown Fault.
POSSIBLE OFFER FOR MINCO PLC BY DALRADIAN RESOURCES INC. - SALE
OF CURRAGHINALT ROYALTY AND DEMERGER OF BUCHANS TO MINCO
SHAREHOLDERS
Minco currently holds a 2% Net Smelter Return ("NSR") royalty on
the Curraghinalt gold property in Northern Ireland, which is being
explored and developed by Dalradian Resources Inc. (TSX:"DNA")
("Dalradian").
On 21 March 2017, Minco announced that it is in discussions with
Dalradian regarding the possible disposal of its 2% NSR royalty on
the Curraghinalt gold deposit (the "Royalty Disposal") in return
for the issue of a total of 15,490,666 new Dalradian Shares valued
at C$20,000,000, in total, based on the volume weighted average
price of Dalradian shares on the Toronto Stock Exchange for the
five trading-day period ending on the day prior to 21 March
2017.
It is proposed that the Royalty Disposal would be structured as
an offer by Dalradian for the acquisition of the entire issued
share capital of Minco (the "Possible Offer"). It is intended that
the Possible Offer would be implemented by means of a scheme of
arrangement, under Section 450 of the Companies Act 2014 of Ireland
(the "Scheme"). As part of the Scheme, it is proposed that Minco
would undertake a demerger of its wholly owned subsidiary Buchans
Resources Limited ("Buchans"), by way of a transfer in specie of
the shares of Buchans to Minco Shareholders (the "Demerger").
Following the Demerger, Minco shareholders would be issued
11,618,000 new Dalradian Shares which would represent 75% of the
total shares to be issued by Dalradian in connection with the
Royalty Disposal. The balance of 3,872,666 new Dalradian Shares,
being 25% of the total, would be issued directly to Buchans, which
would then be wholly owned by Minco Shareholders. There can be no
certainty that the Royalty Disposal will be completed or that the
Possible Offer will be made by Dalradian.
QUALIFIED PERSON
Benjamin Batson, P. Geo. is Minco's Non-Independent Qualified
Person for the purposes of National Instrument 43-101, Standards of
Disclosure for Mineral Projects and has approved the technical
disclosures in this News Release.
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements
relating to, but not limited to, the Company's expectations,
intentions, plans and beliefs. Forward-looking information can
often be identified by forward-looking words such as "anticipate",
"believe", "expect", "goal", "plan", "intend", "estimate", "may"
and "will" or similar words suggesting future outcomes, or other
expectations, beliefs, plans, objectives, assumptions, intentions
or statements about future events or performance. Forward-looking
information may include reserve and resource estimates, estimates
of future production, unit costs, costs of capital projects and
timing of commencement of operations, and is based on current
expectations that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statement include, but are not
limited to, failure to establish estimated resources and reserves
the grade and recovery of ore which is mined varying from
estimates, capital and operating costs varying significantly from
estimates, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, delays in
the development of projects changes in exchange rates, fluctuations
in commodity prices, inflation and other factors. Forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from expected
results. Shareholders and prospective investors should be aware
that these statements are subject to known and unknown risks
uncertainties and other factors that could cause actual results to
differ materially from those suggested by the forward-looking
statements. Shareholders are cautioned not to place undue reliance
on forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and
various future events will not occur. The Company undertakes no
obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
ABOUT MINCO PLC
Minco Plc, incorporated 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 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 developed by Dalradian Resources Inc.
(TSX:"DNA").
John F. Kearney: Chairman & CEO +1 (416) 362-6686
Danesh Varma: CFO & Company Secretary +44 (0)8452 606034
Peter McParland: Director - Ireland +353 (0)4690 73709
Warren MacLeod: Director, President Buchans Minerals +1 (709) 725-0555
John Frain: Davy (NOMAD) +353 (0)1679 6363
Saif Janjua: (Corporate Advisor) (Broker, Beaufort Securities) +44 (0)2073 828415
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFEAASNALSXEAF
(END) Dow Jones Newswires
May 30, 2017 02:02 ET (06:02 GMT)
Miotal (LSE:MIO)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Miotal (LSE:MIO)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024