STEP OUT DRILLING AND REGIONAL EXPLORATION UPDATE

RNS Number : 8150G

Metals Exploration PLC

18 May 2011

 



METALS EXPLORATION PLC

RUNRUNO STEP OUT DRILLING AND REGIONAL EXPLORATION UPDATE

Metals Exploration plc (AIM: MTL) ("Metals Exploration" or "the Company"), the natural resources exploration and development company with assets in the Pacific Rim region, is pleased to provide an update relating to step out drilling and regional exploration activities in the Financial or Technical Assistance Agreement ("FTAA") area surrounding its Runruno gold-molybdenum project in the Philippines. 

Highlights

§ Early success from the systematic assessment of the potential of the Runruno FTAA away from the main mineralisation.

§ Three diamond drill holes confirm the extension of the Runruno mineralisation 150m south of the southern pit boundary.

§ Diamond drilling in the Tulingan area 750m south-east of the Runruno mineralisation intersects 6.9m grading 2.81 g/t Au and 383 ppm Mo.

§ The Tulingan intersection is interpreted to be a new zone and style of gold mineralisation.

§ Drill targets defined at Bocboc and Magnetite Creek within the Runruno FTAA.

§ Bocboc has potential for Runruno styled gold and molybdenum mineralisation.

§ Magnetite Creek area is prospective for copper and gold mineralisation.

§ Regional exploration work is to continue.

Regional Exploration

Runruno Mineral Resource Extension:

An initial programme of five diamond drill holes to test for extensions to the main Runruno mineralisation south of the proposed pit is now complete, with assay results for three of the holes to hand.  In each of these holes significant intercepts of gold and molybdenum have been identified, extending the Runruno mineralised zone 150m south of the previously interpreted southern extent. 

Once the outstanding results for the remaining two holes are received and the geological interpretation of all of the results compiled, the projected near surface position of this new zone of mineralisation will be tested by diamond drilling.

The assay results are presented in the table below:

Hole No	Northing m Local Grid	Easting m Local Grid	From (m)	Width (m)	Au  g/t	Mo ppm
MXD831	100	567	114	17.0	1.59	1,319
MXD832	50	580	123	2.1	0.26	1,493
			130	1.0	0.88	707
			132	2.0	1.07	867
			142	6.0	0.73	420
			153	4.3	1.18	837
MXD 833	00	564	183	3.9	3.48	NA

Tulingan Area:

Two diamond drill holes have been completed in the Tulingan area approximately 750m south-east of the planned Runruno pit to test a gold soil geochemical anomaly in an area of structural complexity.  Previous drilling to the east, reported in December 2009, returned promising intersections of gold-molybdenum mineralisation with similarities to the Runruno mineralisation.

Assay results are available for the initial hole.  Two intersections of significant mineralisation were made, with the wider and higher grade intersection occurring within a volcanic breccia at a depth of 180m below surface.  This mineralisation cannot be correlated with the earlier reported December 2009 intersections 150m to the east and is interpreted to be a new zone and style gold mineralisation hosted by a steeply dipping shear or breccia zone.  The significance of this mineralisation will be assessed by drill testing the projected near surface position of the zone.

The assay results are presented in the table below:

Hole No	Northing UTM	Easting UTM	From (m)	Width (m)	Au  g/t	Mo ppm
TUD012	1813975	321265	184	1.4	0.92	860
			241	6.9	2.81	383

Magnetite Creek Area:

In the Magnetite Creek area, south-east of Runruno, rock chip sampling has returned values of up to 2.04g/t Au and 0.72% Cu in potassic-altered monzonite rocks.  The anomalous area is near the centre of a strong positive aeromagnetic anomaly and is believed to be highly prospective for porphyry Cu-Au style mineralization.  Geological mapping and check sampling has been carried out and two diamond drill holes have been sighted to test for copper-gold mineralization beneath biotite-magnetite rich outcrops which contain visible copper mineralisation.

Bocboc Area:

The Bocboc prospect area, 1,500m east of the Runruno mineral resource area, has been identified from recent geological mapping, soil geochemistry and rock chip sampling.  In Safir Creek outcropping argillically-altered volcaniclastic breccias close to the contact with intrusive monzonites have been recorded.  This rock assemblage supported by anomalous geochemistry is identified as a potential target area for gold and molybdenum mineralisation, in a setting directly analogous to the mineralisation at the Runruno.  Two drillholes are planned to test beneath a gold-molybdenum soil geochemical anomaly in this locality.

General:

Elsewhere in the Runruno FTAA area geological mapping and soil and rock chip geochemistry are being undertaken to develop a more complete understanding of the mineral potential in this permit area.

Other Mineral Tenements

Applications for Exploration Permits ("EPs") that the Company had made over the Capaz and Puray areas were refused by the Mines and Geosciences Bureau ("MGB") under its current programme to "cleanse" its register of 2,000 dormant applications out of a current 2,700 applications.  The MGB has also placed a 12 month moratorium on the application for new EPs.

Ian Holzberger, Executive Chairman, commented:

"It is pleasing to see early positive results being returned from our recently initiated systematic review and assessment of the potential of the Runruno FTAA area.  The extension of the main Runruno mineralisation south from the proposed pit area is particularly encouraging as previously it was thought that the mineralisation was closed off in that direction.

"The identification of the Bocboc target area demonstrates the potential of the Runruno FTAA for additional mineral deposits outside the main Runruno mineralisation, whilst the intersection of a new style of gold and molybdenum mineralisation at Tulingan and the copper and gold anomalies outlined on the surface in the Magnetite Creek area clearly demonstrates the potential for yet further mineral discoveries of differing styles and orientations.

"We remain confident in the short and long term potential of this well mineralised system."

Approval

Mr Ian Holzberger, a director of the Company, who has been involved in the mining industry for more than 37 years, is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists, has compiled, read and approved the technical disclosure in this regulatory announcement.

Enquiries:

Metals Exploration PLC
Ian Holzberger	[phone]
[phone]	[phone]
Nominated Adviser
Westhouse Securities Limited
Tim Feather / Matthew Johnson	[phone]
Public Relations
Tavistock Communications	[phone]
Edward Portman / Jos Simson	+44  (0)7733 363 501

 

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