Information  X 
Enter a valid email address

Arcon Int.Resources (AIN)

  Print      Mail a friend

Thursday 06 March, 2003

Arcon Int.Resources

ARCON's Exploration Success

Arcon International Resources PLC
06 March 2003


EMBARGO for release - 0700, 6th March 2003

                    ARCON increases resource at Galmoy Mine

 New Zone contains 400,000 tonnes of zinc, 160,000 tonnes of lead & 4.7 million
                                ounces of silver


DUBLIN & LONDON: 6th March 2003 - ARCON International Resources Plc is pleased
to announce the first resource estimate and fourth set of results from the
continuing exploration drilling programme at its Galmoy zinc mine in Ireland.
The company has been evaluating a high grade zone (the R Zone) which lies
approximately 125 metres to the southeast of the CW South orebody. The latest
set of holes has been drilled to the north of the deposit, which is still open
to the north-west.

The Indicated Resource has been estimated (holes up to and including hole #138),
at a 4.5% Zn cut off, to be:

     2.0 million tonnes @ 20.6% zinc (Zn), 8.1% lead (Pb) & 75g/t silver (Ag)

        * The average resource thickness of 9.0 metres compares with the average
        width of 5.6 metres of the adjacent CW orebody.

        * The average resource zinc grade of 20.6% is approximately double the
        average grade on the CW ore body of 12.8% Zn.

        * The average resource grades of 8.1% Pb and 75g/t Ag are significantly
        higher than has previously been identified on the Galmoy mine site.

ARCON's Chief Executive, Kevin Ross, said: 'This resource doubles the mine's
contained metal content and will extend the mine's life into the next decade. In
order to maximise shareholder value and generate positive cash flow in a low
zinc price environment, these, these resources will be accessed as soon as
possible.'

'The mining of a 550m drive from the existing CW infrastructure will commence
immediately and is scheduled to reach the R Zone by the third fourth quarter
2003. The mill head grade will then be maximised by blending a small portion of
ore from the R Zone with that from the remaining reserves.'

'The early access to the R Zone will reduce our cash production costs and put us
in a very strong position with the next expected upturn in the zinc price cycle'
he said. 'Further work will be carried out during the coming months to establish
the optimum life of mine plan.'

'The R Zone remains open to the north-west and drilling will continue in this
area, followed by infill drilling within the R Zone. Drilling of other anomalies
identified to the east of this area will commence during the second quarter
2003,' Kevin Ross added.

The gross value of the contained metal in the R Zone resource at current prices
is in the order of $400 million. The set of drill intersections and assays used
in the resource estimation is shown on the following page.


For further information
Pauline McAlester           Keith Irons                  Kevin Ross
Murray Consultants          Bankside Consultants Ltd     ARCON
+353 (1) 498 0300           +44 (207) 444 4155           +353 (56) 37100


Editors note

Andy Bowden P.Geo., B.Sc., M.Sc., Chief Exploration Geologist for ARCON
Exploration Plc and with 30 years experience is the 'Competent Person' managing
this project. Assays have been carried out in the company's laboratory with a
proportion of samples being sent for check assay at the independent OMAC
laboratory, Loughrea, Co Galway.

The drill intersections and assays used in the February 2003 resource estimation
are tabulated below:

   Hole No        From      To          Mineral    Zn       Pb      Ag     Density      Comment
                  (m)      (m)      Intercept (m)   %        %      g/t      t/m3
     99          126.1    136.8          10.7     19.5      3.7      28       3.55   Discovery Hole
    100          129.2    133.2           4.0      3.9      0.2       1       2.72   50m N of #99
    101          122.2    143.0          20.8     23.4      7.5      72       4.01   50m S of #99
    102          131.6    143.6          12.0     25.1      5.3      11       3.88   25m W of #99
    103          132.4    142.8          10.4     27.4      7.9      79       4.15   25m S of #101
    104          136.6    151.0          14.4     32.3     12.8     161       4.34   25m W of #103
    105          135.3    149.7          14.5     19.2      3.0      17       3.58   25m W of #102
    106      Faulted                                                                 25m S of #104
    107          139.6    148.7           9.1     34.3     12.9     115       4.08   25m W of #105
    108          140.2    147.7           7.5     24.0     26.8     414       4.61   25m W of #104
    109          134.7    145.1          10.4     22.1      5.5      30       3.55   25m W 0f #108
    110          140.1    152.1          12.0     24.0     17.5     202       4.14   25m W of #107
    111      Faulted                                                                 25m W of #109
    112          147.3    159.4          12.1     18.9     17.5     309       3.77   25m W of #110
    113      Faulted                                                                 25m S of #109
    114          129.3    147.2          17.9     33.9      4.0      10       4.23   25mN of #109
    115          151.2    158.1           6.9     13.8     10.9     229       3.48   25mW of #112
    116          130.0    161.3          31.3     31.8      9.4      73       4.27   25mN of #111
    117          139.4    143.0           3.6      7.2      4.4      45       3.34   50mW of #116
    118          141.8    156.4          14.6     28.8     22.6     152       4.24   50mN of #110
    119          118.7    125.6           6.9     30.2     10.6      16       4.13   50mEof #99
    120          137.4    154.5          17.1     25.3      3.7      12       3.59   50mEof #118
    121          107.9    113.1           5.2     11.9      6.2      44       3.28   50mE of #119
    122      Faulted                                                                 50mS of #121
    123          142.6    153.4          10.8      8.6      2.4      11       2.98   50mN of #120
    124          111.4    132.1          20.7     19.2     10.7     129       3.97   50mW of #122
    125      Faulted                                                                 50mSof #124
    126          142.3    150.4           8.0     15.3      8.2      67       3.40   50mW of #123
    127      Faulted                                                                 50mW of #1125
    128          139.0    145.0           6.0      6.0      0.5       4       2.84   50mN of #123
    129      Faulted                                                                 50mS of #127
    130          149.0    150.9           1.9      4.3      0.3       3       2.87   50mW of #115
    131          115.4    118.6           3.2      5.1      0.5       5       2.89   50mWof #100
    132          110.9    114.8           3.9      7.9      0.5       4       3.14   50m W of#131
    133          149.2    153.1           3.8      8.1      6.2      48       3.25   50mN of #115
    134          134.8    138.8           4.0     10.7      1.0       3       3.01   50mN of #100
    135          138.8    142.9           4.1      6.5      3.0      20              50mN of #133
    136         Barren                                                               50m N of # 134
    137           66.3     67.3           1.0      7.3      0.5       1              50mE of #121
    138          141.8    146.0           4.2      6.9      6.7      56              50mW of #133

NB Following a review of the check assays carried out by OMAC it has been
established that earlier silver assays for holes #101 to #121 were under
reported. The revised silver grades, as reported above, have been used in the
resource estimation.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                                                     

a d v e r t i s e m e n t