Minco Acquires Bobbys Pond Base Metals Property in Newfoundland from Mountain Lake Minerals
July 31, 2013 (Source: Minco PLC) — Minco Plc (AIM – “MIO”) (the “Company” or “Minco”) is pleased to announce that, through its wholly owned subsidiary, Centrerock Mining Limited (“Centrerock”), it has entered into an agreement with Mountain Lake Minerals Inc. (“Mountain Lake”) (CNSX – “MLK”), to acquire the Bobbys Pond Property which hosts a zinc-copper-lead deposit located adjacent to Minco’s 100% owned Buchans properties in central Newfoundland.
Under the terms of the Agreement, and subject to regulatory approval, Centrerock will acquire a 75% interest in the Bobbys Pond property for a cash payment of CDN$450,000 and a 1% net smelter return royalty (“NSR”) on commercial production in favor of Mountain Lake.
Centrerock has the right to acquire the remaining 25% of the property, subject to fulfilling certain conditions, for a one-time further payment of CDN$ 175,000 to Mountain Lake.
The Company has agreed to spend CDN$ 150,000 in exploration and development on the Bobbys Pond Property over the next year. The Bobbys Pond Property is subject to an existing 2% NSR on commercial production held by previous owners.
ABOUT THE BOBBYS POND PROPERTY
The Bobbys Pond Property is covered by a mining license “ML 187 (4881M)” which comprises a total area of approximately 240 hectares (the “Mining Lease”) and is located within the Tulks mineral belt of central Newfoundland within 17 kilometres of Minco’s Buchans project and 9 kilometers from Minco’s Daniel’s Pond property. The Bobbys Pond Property hosts a zinc-copper-lead-silver deposit with a National Instrument 43-101 compliant mineral resource estimate (see table below). Thick intervals of low grade copper stringer mineralization currently define the edges of much of the Deposit, and indicate that the mineralized system continues at depth.
Bobbys Pond Property NI 43-101 Mineral Resource Estimate
|Tonnes||% Zn||% Cu||% Pb||Ag g/t||Au g/t|
Get our daily investorintel update
Notes: Technical Report dated July 31, 2008 prepared by Scott Wilson Roscoe Postle Associates. The above reported mineral resources are estimated in accordance with CIM guidelines for Classifications of Mineral Resources and Mineral Reserves. Mineral Resources are estimated at a cut-off grade of 1.1% CuEq, with Zn grade converted to Cu at 2.8:1 ratio, Pb grade converted to Cu at 4.35:1 ratio, an average copper price of US$2.50 per lb, an average zinc price of US$0.90 per lb, an average lead price of US$0.75 per lb, and a minimum horizontal width of 2.0 m of mineralization.
Minco’s Daniels Pond deposit, located about 9 Km from Bobbys Pond, hosts a NI-43-101-compliant Indicated Resource of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold, as well as an additional Inferred resource totaling 0.45 million tonnes grading 3.88% Zn, 1.74% Pb, 0.27% Cu, 81.63 g/t Ag and 0.52 g/t Au. Minco expects that there should be significant benefits and opportunities in exploring and developing the two properties in a co-ordinated approach.
ISSUE OF SHARES TO MOUNTAIN LAKE MINERALS
In conjunction with the agreement on the Bobbys Pond property Mountain Lake has agreed, subject to regulatory approval to subscribe for 3,500,000 new ordinary shares of Minco PLC at a subscription price of £0.04 per share for total gross proceeds of £140,000. This share placement will provide Mountain Lake with an ongoing indirect interest and exposure to Minco’s other exploration assets in Newfoundland and elsewhere.
Information of a scientific or technical nature contained in this release has been reviewed by Benjamin Batson, P. Geo., the Vice Present of Exploration Centrerock, a Qualified Person within the meaning of National Instrument 43‐101 of the Canadian Securities Administrators.
Minco Plc, registered in the Republic of Ireland and listed on the AIM Alternative Investment Market of the London Stock Exchange (“MIO”), is premier base metals exploration and development company with advanced projects in established mining jurisdictions in eastern Canada. The Company is also engaged in zinc-lead exploration in the United Kingdom and Ireland. Minco holds investments in zinc‐silver projects in Mexico through a holding of 30 million shares (approximately 29%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V-“XAG”).
On 16 July 2013, Minco acquired Buchans Minerals Corp. (“Buchans Minerals”) which consolidated Minco’s ownership of Buchans Minerals advanced exploration assets, being the Lundberg Project in central Newfoundland and the Woodstock Manganese Project in New Brunswick. Minco owns 100% of the Lundberg base metal project and the Woodstock manganese project, in addition to Minco’s existing exploration projects in the UK and Ireland.
Minco also holds a 2% NSR royalty on the Curraghinalt gold property in Northern Ireland, which is being explored by Dalradian Resources Inc. (TSX-“DNA”).
Minco currently holds approximately US$13 million in cash and is also evaluating a number of other investment opportunities in the minerals industry in North America and Europe.
For further information of Minco refer to Minco’s website at www.minco.ie.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>