Runruno Resource Update
Metals Exploration PLC
04 March 2008
Metals Exploration PLC
Runruno Resource Update
4th March 2008
Metals Exploration PLC ('Metals Ex' or 'the Company'), the natural resources
exploration and development company with assets in the Pacific Rim region, is
pleased to report an updated JORC-compliant resource statement in respect of the
100% controlled Runruno gold-molybdenum deposit in the Philippines.
RESOURCE ESTIMATE HIGHLIGHTS:
• Indicated Resources increased by 90% to 775,000 ounces (oz) from 409,000oz.
• Gold grade of 2.41 g/t is reported up from 2.27 g/t.
• Contained gold estimate has increased to 2.095 million ounces (Moz) from
2.046 Moz.
• Total JORC-compliant Indicated & Inferred Mineral Resource is now estimated
at 27.0Mt at 2.41g/t Au and 0.062% Mo containing 2.095 Moz of gold and
36.690Mlb of molybdenum.
• Estimate includes all drilling to the end of December 2007.
The Company has completed a full technical review of the Runruno gold-molybdenum
deposit, including all drill-hole data to the end of 2007, and has estimated a
JORC-compliant Indicated & Inferred Mineral Resource of 27.061Mt @ 2.41 g/t Au &
0.062% Mo containing 2.095 Moz gold and 36.690 Mlb molybdenum. The full resource
estimate is reported in Table 1 below. For comparative purposes the previous
resource estimate dated November 2007 is shown in Table 2 below.
Increased drill density and more accurate geological control has resulted in an
increase in the number of ounces in the Indicated category by 90% to 775,000 oz
(from 409,000 oz). Consequently, 37% of the total resource (up from 20%) now
reports into the Indicated category.
Tighter definition of the orebody has resulted in a slight reduction in tonnage
(27.0 Mt vs 28.0 Mt), an increase in gold grade (2.41 g/t vs 2.27 g/t) and a
slight decrease in molybdenum grade (0.062% vs 0.064%). The combined effect of
these movements is to increase total contained gold by approximately 50,000 oz
and to decrease total contained molybdenum by approximately 3 Mlb.
Drilling has re-commenced to further define the resource and, significantly, the
most recent work continues to confirm the continuity of the mineralisation,
within broad flat dipping mineralised bodies. This has resulted in the margins
of the mineralisation being more accurately outlined and an improvement in
estimating certainty.
Jonathan Beardsworth, Chief Executive of Metals Ex, said:
'The near doubling of the ounces reporting to the Indicated category is
extremely good news. This, combined with the improved gold grade and the
increase in certainty of the resource estimation, underpins the Company's
recently announced commissioning of a detailed scoping study into the technical
and economic aspects of the Runruno gold-moly project.
Infill drilling has recently re-commenced as part of the Scoping Study and is
expected to further define the continuity, and enhance the estimating certainty,
of the Runruno resource. The Scoping Study is proceeding well, and we expect to
be able to communicate progress over the coming months'.
Table 1: Runruno Resource Estimate - February 2008
Resource Tonnes Gold (Au) Molybdenum (Mo) Net % Operator
Category Attributable
g/t Ounces (M) % Pounds (M)
Indicated 10.027 M 2.40 0.775 0.084 18.636 100% FCF Minerals
Corporation
Inferred 17.033 M 2.41 1.320 0.048 18.063 100% FCF Minerals
Corporation
Total 27.061 M 2.41 2.095 0.062 36.690 100% FCF Minerals
Corporation
Notes to accompany resource statement:
1. 'Net % Attributable' means the portion of the Mineral Resource
attributable to Metals Exploration PLC - in this case 100%.
2. Operator FCF a wholly-owned subsidiary of Metals Exploration PLC
3. Resource estimate based on all drill-holes completed by year end 2007
(153 holes for a total 22,000 metres)
4. All analyses undertaken by Intertek, an internationally accredited
independent laboratory.
5. Gold analysis by classical 1kg screen fire assay analysis
6. Molybdenum analysis by mixed acid digest and ICP-OES
7. Cut off grade of 0.7g/t gold applied to the resource model.
8. No top cut off applied to gold grades. Statistical analyses shows that
no nugget effect is observed in the data set due to high quality screen
fire assay technique use for gold determination. Statistical review
confirms normal distribution of gold assays.
9. No cut off grades have been applied to molybdenum grades.
10. Average bulk density of 2.5 applied to the model.
11. Grade interpolated into a geologically constrained block model using
inverse distance squared algorithm.
12. Qualified and competent persons. Gary Powell (a Director of the
Company) has been involved in the mining and exploration industry for
more than 23 years. He has a Bachelor of Applied Science degree in
geology and is a member of the Australasian Institute of Mining and
Metallurgy and the Australasian Institute of Geoscientists. He has
compiled, read and approved the technical disclosure in this regulatory
announcement. The information in the report to which this statement is
attached that relates to Exploration Results, Mineral Resources or
Ore Reserves is based on information compiled by Mr Brian Lueck, who is
a Member of the Association of Professional Engineers and Geoscientists
of British Columbia, Canada (Lic. No. 21298), and Mr Niel Silvio, who
has a Bachelor of Science degree in geology and is a member of the
Australasian Institute of Mining and Metallurgy. Mr. Brian Lueck and
Mr Niel Silvio were employed as technical consultants to the Company
and each have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activities which each undertook to qualify as a Competent Person as
defined in the 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr. Brian
Lueck and Mr Niel Silvio consent to this report in the form and context
in which it appears.
13. Resources have been classified in compliance with the JORC Code.
Table 2: Previous Runruno Resource Estimate - November 2007.
Resource Tonnes Gold (Au) Molybdenum (Mo) Net % Operator
Category Attributable
g/t Ounces (M) % Pounds (M)
Indicated 5.455 M 2.33 0.409 0.089 10.765 100% FCF Minerals
Corporation
Inferred 22.58 M 2.26 1.637 0.058 28.771 100% FCF Minerals
Corporation
Total 28.04 M 2.27 2.046 0.064 39.536 100% FCF Minerals
Corporation
Notes to accompany resource statement:
1. 'Net % Attributable' means the portion of the Mineral Resource
attributable to Metals Exploration PLC - in this case 100%.
2. Operator FCF a wholly-owned subsidiary of Metals Exploration PLC.
3. No high/top cut off applied to gold grades - preliminary statistical
analyses of gold assays indicate that there is negligible
'nugget effect'.
4. Cut off grade of 0.7g/t gold applied to the model.
5. No high/top cut or low cut off grades applied to molybdenum grades.
6. Average bulk density of 2.5
For more information:
Jonathan Beardsworth + 44 (0) 20 7927 6690
CEO + 44 (0) 7747 101 552
Adrian Hadden + 44 (0) 20 7523 8350
Collins Stewart Europe Limited
Charles Vivian + 44 (0) 20 7743 6672
Pelham PR
Klara Kaczmarek + 44 (0) 20 3159 4395
Pelham PR
Technical note
Drillhole Database
The drilling, surveying, geological and analyses database is produced by
qualified personnel and is compiled, validated and maintained in digital and
hardcopy formats.
Supervision of drilling operations and logging of all drill samples is carried
out by the Company's geologists.
Bulk density testwork is carried out on site and is relatively comprehensive,
although samples of the more friable and broken portions of the mineralised
zones are often unable to be measured with any degree of confidence, therefore
caution is used when using the data. Bulk density measurements are carried out
on selected representative samples of whole drill core wherever possible. The
samples are dried and bulk density measured using the classical wax-coating and
water immersion method, with systematic checks carried out using the direct
measurement method. The average bulk density for the mineralisation has been
estimated at 2.5 using more than 3,000 measurements on drill core
Drillhole deviation is measured down-hole by the drilling contractor using a
conventional single-shot camera and readings taken at regular depth intervals,
usually every 50 metres.
Comprehensive surveying of drillhole positions, topography, and other cadastral
features is carried out by the Company's surveyors using 'total station'
instruments.
Sampling & Analysis
Drill samples are despatched to 'certified' independent analytical laboratories
for analyses. Blanks, Duplicates and Certified Reference Material samples are
included with each batch of drill samples as part of the Company's QA/QC
programme.
Sample Preparation
Diamond drill core -The drill core is taken from the drill site to a secure
compound at the Company's field camp and is logged by the geologist. The drill
core is then split into two equal halves along its long axis, with one half
being sampled at predetermined intervals, collected in calico bags and sent for
analysis. The remaining half-core is retained in core boxes and stored on site
for future reference. Core sizes are PQ3 (o 83mm) from surface to approximately
50 metres depth, then HQ3 (o 61mm ) to the end of the hole.
RC drill samples - 1 metre samples are collected in a plastic bag from the
bottom discharge chute of a cyclone. Sub-sample splits are collected in calico
bags using a 'jones-type' riffle splitter to obtain a 3-4kg subsample for
submission to the laboratories for analyses. RC is carried out using a
face-sampling hammer with a bit diameter of 51/4 (o 135mm).
The calico bagged samples are being submitted to an independent 'ISO17025
accredited' laboratory for sample preparation and analyses for gold and
molybdenum. All samples are dried and crushed by the laboratory and a 900-1000
gram split is taken, pulverized and presented for gold and molybdenum analyses.
The remaining crushed sample is retained in bags and stored at the laboratory
for a period of three months before being returned to the Company for storage.
These remaining crushed samples will be used in the future for additional
analyses for gold, molybdenum, silver, sulphur and other elements as deemed
necessary, for example, for Resource Estimation work.
Analytical Techniques
Gold Gold analysis is by classical 'Screen Fire Assay' technique
that involves sieving a 900-1,000 gram sample to 200 mesh
(75microns). The entire oversize and duplicate undersize
fractions are fire assayed and the weighted average gold grade
calculated. This is one of the most appropriate methods for
determining gold content if there is a 'coarse gold' component to
the mineralisation.
Molybdenum The sample is dissolved in Aqua Regia (3:1 HCl:HNO3) and analysis
is carried out by Inductively Coupled Plasma - Optical Emission
Spectrometry (ICP-OES) method.
Glossary of Terms
JORC The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, 2004 (the 'JORC Code' or
'the Code'). The Code sets out minimum standards,
recommendations and guidelines for Public Reporting in
Australasia of Exploration Results, Mineral Resources and Ore
Reserves. The definitions in the JORC Code are either
identical to, or not materially different from, those similar
codes, guidelines and standards published and adopted by the
relevant professional bodies in Australia, Canada,
South Africa, USA, UK, Ireland and many countries in Europe.
Mineral Resource is a concentration or occurrence of material of intrinsic
economic interest in or on the Earth's crust in such form,
quality and quantity that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological confidence,
into Inferred, Indicated and Measured categories when
reporting under JORC.
Inferred Mineral Resource is that part of a Mineral Resource for which
tonnage, grade and mineral content can be estimated with a
low level of confidence. It is inferred from geological
evidence and assumed but not verified geological and/or grade
continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes which may be limited
or of uncertain quality and reliability.
Indicated Mineral Resource is that part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level
of confidence. It is based on exploration, sampling and
testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and
drill holes. The locations are too widely or inappropriately
spaced to confirm geological and/or grade continuity but are
spaced closely enough for continuity to be assumed.
Measured Mineral Resource is that part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are
spaced closely enough to confirm geological and grade
continuity.
Cut off Grade The lowest grade, or quality, of mineralised material that
qualifies as economically mineable and available in a given
deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an
acceptable product specification.
Top cut The value assigned to individual samples shown to have a
grade so high that they are not truly representative of the
overall grade in the deposit. In a resource estimate these
high values may also be referred to as being due to the
'Nugget Effect'. They are downgraded to prevent over
estimation of the total resource as they exert an undue
statistical weight.
Au chemical symbol for gold
Mo chemical symbol for molybdenum
HCl chemical symbol for Hydrochloric Acid
HNO3 chemical symbol for Nitric Acid
g gram
t tonne (= 1 million grams)
g/t grams per tonne, equivalent to parts per million (g/t Au
= grams of gold per tonne)
% percent (1% = 10,000 parts per million)
lb avoirdupois pound (= 453.59237 grams)
oz troy ounce (= 31.103477 grams)
micron A unit of length (= one thousandth of a millimetre or one
millionth of a metre).
200 mesh the number of openings (200) in one linear inch of screen
mesh (200 mesh approximately equals 75 microns)
QUALIFIED/COMPETENT PERSONS
Gary Powell (a Director of the Company) has been involved in the mining and
exploration industry for more than 23 years. He has a Bachelor of Applied
Science degree in geology and is a member of the Australasian Institute of
Mining and Metallurgy and the Australasian Institute of Geoscientists. He has
compiled, read and approved the technical disclosure in this regulatory
announcement.
The information in the report to which this statement is attached that relates
to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Brian Lueck, who is a Member of the Association of
Professional Engineers and Geoscientists of British Columbia, Canada (Lic. No.
21298), and Mr Niel Silvio, who has a Bachelor of Science degree in geology and
is a member of the Australasian Institute of Mining and Metallurgy. Mr. Brian
Lueck and Mr Niel Silvio were employed as technical consultants to the Company
and each have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activities
which each undertook to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr. Brian Lueck and Mr Niel Silvio consent to this
report in the form and context in which it appears.
This information is provided by RNS
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