TIDMMIO
RNS Number : 6704Y
Minco PLC
07 March 2017
Minco Plc
POSITIVE RESULTS FROM METALLURGICAL RESEARCH PROGRAM
ON CENTRAL MILLING FACILITY IN NEWFOUNDLAND
-- Minco's Lundberg deposit key feed contributor to Central Mill
-- Positive Metallurgical Results for all Deposits using Common Flotation Flowsheet
--------------------------------------------------------------------------------------
TORONTO, 7 MARCH 2017 - Minco Plc (AIM - "MIO") is pleased to
provide a summary of the results from its recent successfully
completed research program investigating the viability of a central
milling facility to develop its volcanogenic massive sulphide
("VMS") Zn-Pb-Cu-Ag-Au base metal deposits in central
Newfoundland.
Objectives of the Research Program
Minco, through its 100% owned subsidiary Buchans Minerals
Corporation, and Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF)
undertook the collaborative study to explore the concept of a
centralized milling facility to process multiple base metal
deposits in Newfoundland.
The metallurgical research program was funded in part by the
Research & Development Corporation of Newfoundland and Labrador
(RDC) through the GeoEXPLORE Industry-led program.
Both companies hold base metal exploration projects with several
polymetallic deposits under advanced exploration and early
development within the vicinity of the past producing Buchans and
Duck Pond mines in central Newfoundland. The main copper, lead,
zinc silver and gold deposits that were included in this study were
the Bobbys Pond, Daniels Pond and Lundberg deposits, 100% owned by
Buchans Minerals and the Lemarchant and Boomerang-Domino deposits,
100% owned by Canadian Zinc.
The Lundberg deposit is the largest, most advanced property in
terms of resource definition, mine planning (with the potential to
have an open pit mine), metallurgical testing and economic studies
completed to date. All the other mineral deposits are smaller,
higher grade deposits that may not individually support a mine and
processing operation and therefore the principal goal of the
research program was to assess the technical and economic viability
of developing a number of these mineral deposits utilizing a common
central processing facility.
Research Study Methodology
To evaluate the potential for centralized milling of some or all
of these deposits, the study included bench scale testing for
process development, preliminary mine plan development and using a
conceptual economic model to assess the economics of various
processing scenarios.
The bench scale test work was undertaken by Thibault &
Associates Inc. of Fredericton, New Brunswick, to characterize each
deposit with respect to dense media separation ("DMS") and
flotation for production of copper, lead and zinc concentrates.
The use of DMS was considered as an opportunity to reduce
transportation costs by rejecting waste at the mine site before
trucking to the central milling facility. The bench scale flotation
testing was completed in order to develop a common flotation
flowsheet with flexibility for processing of the five different
deposits involved, and improve grades, recoveries and operating
costs defined by previous test programs.
Buchans Minerals and Canadian Zinc provided preliminary mine
plans, mining costs and operating costs for each of their
respective deposits. Thibault & Associates Inc. combined the
mining inputs with a process simulation and costing model to
develop a conceptual economic model for the project, which was used
to evaluate various process options. The variables assessed
included several potential mill sites, with or without DMS, new or
used process equipment, mining rate, and processing feedstock
composition for each deposit.
Highlights of Results of Research Program:
-- Pre-concentration of the samples by bench scale DMS testing
(prior to flotation) was determined to be technically viable for
the Lundberg deposit, Bobbys Pond samples and the semi-massive and
stringer sulphide sample from the Lemarchant Footwall.
-- Metallurgical test results strongly support the development
of a sequential flotation flowsheet for the processing of all five
deposits using a centralized processing facility.
-- Bench scale flotation test programs indicated improved grade
and recovery relationship for the production of copper, lead and
zinc concentrates using a common sequential flotation flowsheet
rather than a bulk flotation flowsheet.
-- Test results and METSIM(TM) metallurgical simulations confirm
that selective zinc, lead and copper concentrates at marketable
grades can be produced using a sequential flotation flowsheet.
-- The process simulation and cost assessment results
(conceptual economic modeling) provided key information on which to
base future studies and development plans, including the ongoing
exploration programs that are critical to expanding the deposits
and advancing the viability of developing the central Newfoundland
deposits through a centralized milling facility.
"We are very satisfied and encouraged with the results of the
research program", stated John Kearney, Chairman and Chief
Executive of Minco. "From the important metallurgical standpoint,
demonstrating that these five different deposits can be processed
on a common flotation flowsheet is a key step forward in evaluating
the viability of centralized milling as a development opportunity
for these projects. The initial economic simulations utilizing this
new metallurgical data provides valuable information and direction
on which to guide our future exploration and development plans for
our Newfoundland deposits".
Summary Findings of Research Program
The DMS and metallurgical test results for all five deposits
were reported in November 2016 (see news release November 3,
2016).
The DMS and metallurgical test programs were followed-up by
Thibault & Associates with a Process Simulation and Cost
Assessment model (AACE Class V - order of magnitude conceptual
assessment) to evaluate and identify the key factors impacting the
operating
economics of a centralized processing concept for the production
of the base metal concentrates from the five base metal
deposits.
Multiple conceptual economic scenarios at three potential sites
were developed to simulate the proposed centralized milling
concept. The variables assessed included the different potential
mill sites, with or without DMS, new or used process equipment,
mining rate, and processing feedstock composition for each deposit.
Lundberg, being the largest but lowest grade deposit, was
considered the main plant feed and Lemarchant, Boomerang, Daniels
Pond and Bobbys Pond were treated as satellite deposits.
The results indicated that Minco's Lundberg deposit would
enhance the viability of a central milling facility and the future
development of this region's mineral resources. The potential
benefits include:
-- Increase Project Life - The additional tonnage contribution
from the Lundberg deposit to a central milling facility would add
considerably to the life of the project.
-- Reliable Mill Feed - Open pit production from the Lundberg
deposit would provide a very predictable and reliable source of
mill feed that will limit potential issues related to maintaining
underground mining rate from the other satellite deposits.
The proximity of the Lundberg deposit to the town of Buchans
provides for ready access to existing infrastructure (i.e. roads,
electricity, labour), as well as existing tailings facilities that
could potentially be expanded, but would result in longer haulage
distances from most of the satellite deposits.
Minco's Lundberg deposit is a large, near-surface open-pitable
resource located on the north side of Red Indian Lake near the town
of Buchans in central Newfoundland, which because of its large size
holds more contained zinc, copper and lead metal than the other
four smaller satellite deposits combined.
The Lundberg deposit is comprised of base metal sulphide
enriched stockwork mineralization located in the footwall to the
previously mined, high-grade, Lucky Strike massive sulphide ore
body, which was mined by ASARCO between 1926 and 1984.
Table 1: Lundberg Deposit NI 43-101 Indicated & Inferred
Resource Estimate (2013).
NSR ($US) Category Rounded Zinc Lead Copper Silver Gold
Cut-off Tonnes (Zn) (Pb) (Cu) (Ag) (Au)
% % % g/t g/t
---------- ---------- ----------- ------- --------- ------- ------- ------
15 Indicated 23,440,000 1.41 0.60 0.35 5.31 0.07
---------- ---------- ----------- ------- --------- ------- ------- ------
Inferred 4,310,000 1.29 0.54 0.27 4.47 0.08
---------- ---------- ----------- ------- --------- ------- ------- ------
*Source: - Mineral Resource Estimate Technical Report on the
Lundberg Deposit, Buchans Area, Newfoundland, Canada, April 26,
2013; filed on SEDAR
The metallurgical research study demonstrated that the ore from
Minco's Lundberg, Daniels Pond and Bobby's Pond deposits can be
successfully processed in a central mill using a sequential
flotation flowsheet, and that selective zinc, lead and copper
concentrates at marketable grades can be produced from these
deposits.
Recommendations and Future Programs
The positive results of the research project provide valuable
direction to guide future exploration on Minco's central
Newfoundland volcanogenic massive sulphide ("VMS") Zn-Pb-Cu-Ag-Au
base metal deposits and the conceptual economic modelling provided
key information on which to focus future economic studies and
development plans for advancing the development of the Lundberg and
satellite deposits using a central milling facility.
It is recommended that further review of the satellite deposits
should be undertaken to examine the potential to increase minable
resource size, run of mine ore grades and mine production rates,
and to evaluate cost-effective alternative mining methods, so that
the satellite deposits could generate sufficient revenue to support
the costs in developing and producing from these smaller, higher
grade deposits.
ABOUT MINCO PLC
Minco Plc, incorporated in the Republic of Ireland and listed on
the AIM Market of the London Stock Exchange ("MIO"), is an
exploration and development company currently engaged in zinc-lead
exploration in Canada, the United Kingdom and Ireland, and is also
evaluating its Woodstock manganese project in New Brunswick,
Canada.
Minco also holds an approximate 26% shareholding in Xtierra Inc,
(TSXV- "XAG"), which holds mineral properties in Mexico, and a 2%
NSR royalty on the Curraghinalt gold property in Northern Ireland,
currently being explored by Dalradian Resources Inc.
(TSX-"DNA").
For further information contact:
Warren MacLeod: Director, President +1 709 725
Buchans Minerals 0555
+1 416 362
John F. Kearney: Chairman 6686
+44 (0) 8452
Danesh Varma: CFO & Company Secretary 606 034
+353 (0) 46
Peter McParland: Director - Ireland 907 3709
John Frain: Davy (NOMAD) +353 (0)1 6796363
Saif Janjua: (Corporate Advisor) +44 (0) 20
(Broker, Beaufort Securities) 7382 8415
Website: www.mincoplc.com
Qualified Person
J. Dean Thibault, P.Eng., Senior Process Chemical Engineer of
Thibault & Associates Inc. is the qualified person for this
release and has reviewed the contents for accuracy and approved
this release. Thibault & Associates Inc. is a process chemical
engineering firm specializing in process flowsheet development,
plant design and process intensification assessment.
Cautionary Statement - Forward-Looking Information
This news release contains certain forward-looking information,
including, among other things, the expected exploration of mineral
properties. This forward looking information includes, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the timing of
exploration, development and mining activities, the size and
quality of mineral resources, progress in development of mineral
properties, demand and market outlook for metals, future metal
prices and treatment and refining charges, future trends for the
company, and the financial results of the company. Mineral
exploration and development is a speculative business including,
among other risks, the failure to discover mineral deposits but
also from finding mineral deposits that, though present, are
insufficient in quantity and quality to return a profit from
development and production. There can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. Inferred mineral resources
are considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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