Metals Exploration PLC
27 May 2005
FOR IMMEDIATE RELEASE 27 MAY 2005
METALS EXPLORATION PLC
RUNRUNO PROJECT - RESULTS OF CHANNEL SAMPLING OF TUNNELS
Summary
Results of the majority of samples obtained from extensive channel sampling of
the tunnelling created by local minersat Runruno have been received and
compiled.
Results received so far have returned gold grades which average greater than the
reported average grade of the 1980-calculated Runruno resource (1.4 g/t Au).
250 channel samples were collected from underground within 30 different tunnel
locations averaging 4.7g/t Au. Seven rock-chip and channel samples were
collected at surface from the northern extension of the mineralised zone which
averaged 2.6g/t Au.
The Company anticipates the first diamond drill rig willarrive at the project
within the next two weeks. The drilling will target the same area as the
previous 1970s resource drilling of Fil-Am Resources Inc. ('Fil-Am'). The
intention is to upgrade the average grade of the resource by achieving good
drill core recoveries, in contrast to the poor recoveries achieved by Fil-Am in
the higher-grade zones during the 1970s.
Table 1. Runruno Project - partial results of analyses of channel and rock-chip
samples.
Sample Number of Representative Tunnel Length Gold Molybdenum
Location Samples (metres) average average
g/t Au ppm Mo
Balcony 1a 6 30 2.99 134
Bit-Ang 1 3 15 1.88 114
Bit-Ang 2 12 60 4.10 708
Bit-Ang 3 12 60 2.37 553
Bit-Ang 4 10 50 1.25 227
Bit-Ang 5 9 45 5.33 316
Bit-Ang 6 9 45 3.36 619
Balcony 1b 4 20 3.30 414
Balcony 1c 9 45 11.30 447
Balcony 1d 19 95 10.10 1058
Balcony 1e 21 105 5.00 na
Balcony 1f 9 45 2.58 na
Balcony 2 12 60 5.51 na
Malilibeg 4 20 5.78 na
A
Malilibeg 4 20 3.31 na
B
Malilibeg 19 95 5.70 na
C
Malilibeg 5 25 2.74 na
D
Malilibeg 3 15 3.56 na
E
Malilibeg 4 20 1.87 na
F
Malilibeg 1 5 5.87 na
G
Malilibeg 3 15 3.56 na
H
Malilibeg 4 20 1.87 na
I
Malilibeg 2 10 6.07 na
J
Malilibeg 23 115 4.84 na
K
Tayab A 8 40 3.78 na
Tayab B 13 65 1.28 na
Tayab C 5 25 5.14 na
Tayab D 12 60 5.65 na
Tayab E 5 25 3.36 na
Kinalabasa 7 surface sampling 2.60 na
na = not yet available
Channel Sampling Method - high-grade miners' tunnels
The side-walls of the local miners' tunnels are channel sampled over 5 metre
interval lengths. Collection of each sample is obtained by chiseling a
continuous channel, approximately 50mm deep, into the side-walls at waist height
over a total length of 5 metres. The sample material is collected and separately
bagged, which is tagged and marked with its own respective sample number.
The consecutive channel samples from each tunnel location could be thought of as
being similar to samples obtained from horizontal drilling, although not
necessarily as representative. The 30 tunnels that have been sampled occur over
a 1 kilometre distance within the 2.5 kilometres of the strike length of the
surface mineralization defined so far.
Surface Sampling Methods
The 7 samples collected from the Kinalabasa area were taken from two separate
areas of outcrop, approximately 200 metres apart. They comprise random rock-chip
and channel samples of the surface outcrops of the exposed part of the main
Runruno mineralised zone.
Results - Gold
Analysis of samples for gold content is by conventional fire assay technique on
a 50 gram catchweight and AAS finish.
The results are encouraging, given that the average grade is greater than the
1980 resource grade of 1.4g/t Au.
Although the samples were collected in the higher grade parts of the mineralised
zone, that is, near to the hangingwall or footwall contact zones, the grades are
greater than those obtained from the 1970s diamond core drilling of the same
zones in the same areas.
Local minersare currently working some of these zones and are recovering coarse
gold using small rod-mills and sluices. This is also considered to be
encouraging as these miners, who are focussed on high-grade recovery,are not
necessarily recovering the fine gold particles and recovered grades of greater
than 5g/t Au are usually required by them to make a profit.
Results - Molybdenum
To date only 93 of the 257 samples submitted for molybdenum analysis have been
received. The results received so far average 567ppm Mo. The molybdenum to gold
ratio so far averages 106 to 1.
The molybdenum content has the potential to add value to the Runruno deposit.
Recent prices have been published at approximately US$35 per pound of
molybdenum. At the current price of gold (US$420 per ounce), 106ppm Mo equates
to the same value as 0.6g/t Au.
Geological Mapping
Metals Exploration has previously announced the surface delineation of a 100
metre wide, continuous zone of gold+molybdenum+copper+silver mineralisation over
a strike length of at least 2,200 metres and down-dip depth of up to 400 metres
at Runruno. Recent mapping and sampling has extended the strike length to 2,500
metres. This is also encouraging as it increases the potential resource size.
The Runruno Deposit - Exploration History
Gold was first discovered at Runruno during the early 1960s and itinerant
'high-grade' miners have since been selectively mining the higher gold grade
mineralization within the main mineralised zone.
From 1969 to 1974, Fil-Am Resources Inc. completed a total of approximately
8,670 metres of diamond drilling in the central part of the mineralised zone,
over a strike length of approximately 600 metres, opened 3 adits and developed
800 metres of exploratory drives. Results of Fil-Am's channel sampling of the
exploratory drives returned significant results ranging up to 11.82 oz/t gold
(367 g/t Au) with the main area averaging 2.8 oz/t gold (87 g/t Au) over 40
metres by 20 metres.
In 1978 and 1979 a feasibility study was completed by two Japanese companies,
and a 1980 feasibility report gave an estimated resource, at 0.8 g/t Au cutoff,
of 13.4 million tonnes grading 1.4 g/t Au and 3.29 g/t Ag for contained 600,000
ounces of gold to a depth of approximately 200 metres below the highest part of
the deposit.
Towards the end of 2000 and early 2001, a subsidiary company of Placer Dome
Exploration of Canada ('Placer') completed 11 diamond drill holes for a total of
2,020 metres. Only two holes were drilled through the mineralised zone with
another two abandoned at the upper contact of the zone. The remaining holes
targeted geophysical anomalies elsewhere within the tenement. Best results from
the two holes which intersected the mineralised zone are 24m @ 1.74 g/t Au from
42 metres and 12m @ 2.06 g/t Au from 140 metres in hole RUD-0001, and 10m @ 3.91
g/t Au & 246ppm Mo from 4 metres; 8m @ 4.45 g/t Au & 404ppm Mo from 28 metres
and 30m @ 2.07 g/t Au & 749ppm Mo from 72 metres.
Proposed Exploration
The Company is anticipating the first diamond drill rig will arrive at the
project within the next two weeks. The resource area outlined by Fil-Am during
the 1970s will be re-drilled with the primary objective to achieve better core
recoveries and consequently the Company expects an increase in the average gold
grade.
In addition the molybdenum content will be determined as this metal has the
potential to add value to the total value of any future resource estimations.
Forward Looking Statement
The Company's objectiveis to determine a gold (+molybdenum) resource over a 600
metre strike, 100 metres width to a down-dip depth of 400 metres. Given these
parameters, the Directors are setting a resource target for this part of the ore
body of 45 to 55 million tonnes. This is a forward looking statementand should
not be regarded as anything else and should notbe regarded as a true indication
of the resource until it has been properly explored.
Qualified Person
Gary Powell has been involved in the mining and exploration industry for more
than 20 years. He has a Bachelor of Applied Science degree in geology, and is a
member of the Australasian Institute of Mining and Metallurgy ('AusIMM') and the
Australasian Institute of Geoscientists ('AIG'). He has compiled, read and
approved the technical disclosure in this regulatory announcement.
Note: 1ppm of Mo equates to 1g/t Mo
For further information please contact:
Steven Smith, Chairman: 0044(0)7797721858
Jonathan Anderson, Investor Relations: 0044(0)7950410680
www.metalsexploration.com
This information is provided by RNS
The company news service from the London Stock Exchange
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