Minco plc
Update
August 27th
2004: Minco, the AIM listed precious
metals developer, continues to follow its strategy to acquire and develop high
value projects which require low capital expenditure to bring into production.
Utilising intellectual know-how and industrial expertise, Minco is already
adding value to its portfolio and has a dedicated experienced team of personnel
ensuring all projects follow the most efficient route both with regards to time
and cost to Minco and its shareholders.
Highlights:
The
prefeasibility study is ongoing; there have been some minor delays to the
confirmatory drilling programme due to inclement weather which has meant that
‘on lake’ drilling has been slower than expected. However, Minco have taken this
opportunity to add to the drill programme and sample along the lake shore which
is still part of the concession area and which was previously not considered in
the resource.
The
seismic and bathymetric studies designed to complement the drill data by
identifying the water, topsoil and tailings layers has been completed and the
data is being analysed by MICON International as part of the prefeasibility
study.
The
Environmental baseline study has been completed and work continues on the Impact
Study.
Additional metallurgical testwork to optimise and improve
metals recovery from the tailings material continues under MICON
supervision.
Returned
assay results to date confirm the assay values previously recorded by Bondar
Clegg Laboratories and have indicated a large high grade zone in the tailings
which shows silver returns in excess of 120g/t and gold greater than 1
g/t.
Technical and legal due diligence is underway on the
Vodarazdelnoe project. Minco have
retained Denton Wilde Sapte to complete the legal and commercial due diligence
and ACA Howe to complete the technical due diligence. This will be completed in September
2004. At the same time Minco are
developing an exploration programme to bring the project to prefeasibility stage
within 12 months.
Drilling
in conjunction with Noranda is underway on the significant Pallas Green
concession and is due to be completed Q4, 2004.
Minco
aims to be in precious metals production in 2005. The La Laguna project is currently the
most advanced project on the company portfolio and the company continues to push
this project for earliest completion of the prefeasibility study and Mexican
Government final operational permitting.
Minco is
strategically placed to take advantage of the bullish performance in the last 12
months of metals prices:
|
|
Price Aug 24 04 |
12 Month Change | |
|
Gold |
406.00 |
US$/oz |
+13% |
|
Silver |
6.60 |
US$/oz |
+33% |
|
Lead |
0.400 |
US$/Pound |
+78% |
|
Zinc |
0.428 |
US$/Pound |
+19% |
|
Copper |
1.270 |
US$/Pound |
+59% |
|
Mercury |
455 |
Per Flask |
+127% |
Minco
sees a continued upward trend in commodities prices over the medium term and
expects that it will benefit from this upswing once production
begins.
Matthew
Dorman, CEO, added: ‘The natural resources sector has taken a beating recently,
with corrections in share prices on a number of stocks, however we believe that
our current portfolio of projects, being geographically diverse and having
extremely robust economics will continue to be high margin opportunities. The underlying fundamentals for precious
metals is strong, particularly with regard to silver, which we feel will
continue steady growth over the short to mid term.’
For further
information
Matthew
Dorman, CEO.
Tel:
+34 687 494550
Email: mldorman@orcagoldcorp.com
Roger
Turner, Chairman.
Tel
+44 (0) 1273 495500
E-mail: rwturner@orcagoldcorp.com
Laurence
Read / Leesa Peters, Conduit PR
+44
(0) 207 936 9095 / +44 (0) 7979 955 923
E-mail: laurence@conduitpr.com
MINCO
is a precious metals development and Exploration Company traded on the AIM
market in London. Ticker symbol (MIO), www.minco.ie