Drilling Update

RNS Number : 2472U

Connemara Mining Company plc

20 December 2011

 



20 December 2011

Zinc Discovery Drilling Update

Connemara is a diversified Exploration Company, with principal assets in base metal zinc/lead exploration licenses as well as shear hosted gold targeting licenses, in Ireland.  The company holds interests in 33 licenses covering an area of approximately 1,250 sq km.

Stonepark West Highlights

·     Hole 99 intersects 7.2m at 6.37% Zinc and 2.17% Lead from 244.8m.

·     Hole 95 intersects 2m at 11.62% Zinc and 0.49% Lead from 248.8m

·     Hole 91 intersects 2.4m at 4.47% Zinc and 0.21% Lead from 381.2m

Chairman, John Teeling commented:

"These are exciting results, which enhance the potential of the Stonepark discovery.  Three zones now exist in a triangle between 1.7km and 2km apart; thereby demonstrating the possible size of the mineralized system.  Another important point to note is that the newly discovered Stonepark West zone is still open and the potential exists to expand the extent of the known mineralization.   This supports a developing view that the zinc rich area in Limerick trends southwest from the Xstrata discoveries at Pallas Green southwestwards through and beyond Stonepark.  The Connemara/Teck JV hold the prospective licenses to the southwest.  Recent developments on the Pallas Green discovery, directly adjacent to Stonepark, are positive for Connemara.  Xstrata has bought out the minority partner in Pallas Green and announced that they hope to have a major zinc mine, 6,000 tonnes per day, operational by 2017."

Operational Details

Connemara Mining Company Plc ("Connemara" "The Company") (AIM CON) is pleased to provide an update on its exploration programme of the Stonepark area in Limerick.  The program is a joint venture between Connemara (25%) and Teck Ireland Ltd. ("Teck") (75%).  Three mineralized zones have been identified in the Stonepark area.

Recently completed drilling at Stonepark West has identified two lenses of Zn-Pb mineralization.

Hole 91 intersected 2.4m at 4.47% Zinc and 0.21% Lead from 381.2m and is located 100m west of hole 086, the Stonepark West discovery hole announced in September 2011.

Hole 95 intersected 2m at 11.62% Zinc and 0.49% Lead from 248.8m and is located 100m east of hole 86.

Hole 99 intersected 7.2m at 6.37% Zinc and 2.17% Lead from 244.8m including a higher grade zone of 2.67m at 10.88% Zinc and 4.03% Lead from 244.8m and is located 100m south of hole 95.  Table 1 gives highlights of these recent drill hole results.

The zinc-lead mineralization intersected in holes 95 and 99 is at a different depth than that intersected in holes 86 and 91 (this alludes to the possibility of a stacked lens morphology that could result in a greater concentration of mineralization within a smaller area). The upper lens of massive sulphide mineralization (holes 95 and 99) is at the same depth as the zinc discovery at Stonepark North, located 1.7km to the northeast.  The lower massive sulphide mineralization (holes 86 and 91) is at the same depth as the mineralization at Stonepark, located 2km to the east.  The mineralization is open in all directions with hydrothermal breccias (a critical component of this style of deposit) intersected 1km to the north, 500m to the south and over 1.5km to the west of Stonepark West.

Table 1: Stonepark West Drilling Highlights

Hole ID	From (m)	To (m)	Thickness1 (m)	zinc (%)	lead (%)
TC-2638-099	244.8	252	7.2	6.37	2.17
	Including:
TC-2638-099	244.8	247.47	2.67	10.88	4.03
TC-2638-095	248.8	250.8	2	11.62	0.49
TC-2638-091	381.2	383.6	2.4	4.47	0.21
TC-2638-0863	382.5	385	2.5	4.16	4.37
TC-2638-0642	273.00	276.10	3.10	1.92	0.56
TC-2638-0642	290.00	288.00	2.00	1.09	0.01
TC-2638-0712	260.30	262.00	1.70	3.01	0.09

¹All drill holes are vertical (-90 degrees). ²Reported 25^th May 2011. ³Reported 8^th September 2011.

Technical Analysis

The Stonepark mineralizing system is developing a footprint comparable to that seen in other economically significant regions in the Irish Midlands Orefield, such as Lisheen, Silvermines or Tynagh.  All of these deposits are hosted by the same geological formation and display many similarities to the Stonepark system. To date at Stonepark, a series of high grade mineralized lenses have been discovered within a 2km long / 1.5km wide corridor between Stonepark North, Stonepark West and the original Stonepark discovery.  There is a strong probability that the mineralizing system extends well beyond these currently defined limits as evidenced by the extensive brecciation and low grade mineralization that has been discovered by very widely spaced reconnaissance drilling.  This is clearly a very large system with potential for economic discoveries.

The thickness and grades of the massive sulphide lenses in the various zones are analogous to some of the best seen in the Irish Midlands Orefield, for example the 7.5 metre thick intersection grading 19.2% Zinc/8.5% Lead in Hole 45 at Stonepark North, at the relatively shallow depth of 220metres.  This shallow depth is encouraging as it will have major implications for reducing any future mining and development costs.  The drilling density between the currently defined zones remains relatively sparse leaving scope for the zones to be connected or new zones to be discovered.  There is also a possibility that the Stonepark mineralization may connect with the neighbouring Xstrata Pallas Green zones.

The Stonepark West Zone is undoubtedly exciting from a number of perspectives; in particular the fact that the mineralized body remains open, and that the geological / structural setting and the style, thickness and grade of the mineralization is directly comparable to other significant Irish Type deposits.

This announcement has been reviewed and approved by the Company's technical director Graham Reid (P.Geo) in his capacity as the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.  Mr Reid is a Professional Member of The Institute of Geologists of Ireland (IGI) and The Society of Exploration Geophysicists (SEG) and has over 30 years' experience in mineral exploration and site investigation fields.

Enquiries:

Connemara Mining Company Plc

John Teeling, Chairman                                                                                [phone]

Jim Finn, Financial Director

Westhouse Securities Limited

Tim Feather                                                                                                       [phone]

Richard Baty

College Hill

Nick Elwes                                                                                                          [phone]

Optiva Securities Ltd

Jason Robertson                                                                                              [phone]   

www.connemaramining.com

 

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