Minco Reports Interim Financial Results for the Three Months Ended 31 March 2015
Dublin, 29 May 2015 – Minco Plc (AIM-“MIO”) (the Company), reports that it has filed its unaudited interim condensed financial statements for the three month period ended 31 March 2015.
Copies of the Accounts and related Management’s Discussion and Analysis are available on the Company’s website www.mincoplc.com
All dollar amounts are stated in US dollars, unless otherwise noted.
For the three month period ended March 31, 2015, Minco recorded a profit of US$482,000 compared to a loss of US$271,000 for the same period ended March 31, 2014.
A foreign exchange gain of US$665,000 was recorded during the period compared to a foreign exchange gain of US$17,000 during the same period in 2014. Administrative expenses (excluding foreign exchange) for the three month period ended March 31, 2015 amounted t o US$203,000, compared to US$292,000 in the same period in 2014.
During the quarter Minco invested US$254,000 on mineral exploration, mostly on drilling on the Buchans and Pennines zinc/lead exploration projects.
At March 31, 2015, Minco held US$5,431,000 in cash and cash equivalents. At March 31, 2015, the Company had a working capital surplus of US$5,013,000, compared to a working capital surplus of US$5,497,000 at December 31, 2014.
At March 31, 2015, Minco held mineral properties with a book value of US$13,389,000.
BUCHANS BASE METAL PROJECTS
Minco resumed drilling south of former Lucky Strike mine in the Buchans area of Central Newfoundland in April of 2015, following up on favourable results from drilling in 2014.
The 2015 programme totals approximately 2,100 metres of drilling in seven new holes, as well as extensions to four holes previously drilled by Minco between 2008 and 2014, and is testing several mineralized horizons to depths of less than 250 metres. All holes are located within 250 metres of the former Lucky Strike mine.
The initial three holes were drilled 125 to 200 metres to the west and southwest of drilling completed in 2014, beyond the interpreted limits of the Engine House mineralized zone and the Lucky Strike massive sulphide zone, and returned anomalous base metal values at the Lucky Strike horizon, as well as highly anomalous base metal values from the deeper ‘Ore Clast’ horizon. Full details and assays will be released upon receipt and assessment of all assay results.
Following completion of the spring drilling programme, Minco will continue its re-logging of historical drill core to assist in the geological interpretation and help define additional priority targets at the Company’s other undeveloped base metal prospects in the Buchans area in preparation for a second 2015 drilling program to be undertaken later in the year.
Minco has applied for grant funding from the Government of Newfoundland and Labrador’s 2015 Junior Company Exploration Assistance (“JEA”) programme, from which the Company may receive grants of up to $100,000 to support the 2015 Buchans drilling programme.
In May 2015, Minco received a grant of CDN$45,000 from the Government of Newfoundland and Labrador relating to the 2014 exploration program.
WOODSTOCK MANGANESE PROJECT
In July 2014 Minco completed a Preliminary Economic Assessment (“PEA”) of its wh olly owned Woodstock electrolytic manganese metal (“EMM”) project, located 5 km west of the town of Woodstock and the junction of the Trans Canada and I -95 Highways in west-central New Brunswick, Canada.
Given the large scale of the Woodstock project, Minco is currently seeking a qualified partner to continue the development of the project. With the assistance of the Canadian Trade Commission in China, Minco has approached major EMM companies with a view to seeking a partner in China.
The electrolytic manganese metal market has been dominated by Chinese producers since 2000, and China has consistently supplied almost all of global demand. By 2011, when EMM demand reached its peak of 1.8 million tonnes of EMM, Chinese plant capacity was approximately 2.4 million tonnes.
Although most of the Chinese EMM producers are currently focused on achieving internal efficiencies, one of the largest Chinese EMM producers has recognized the advantages of the Woodstock project and has initiated a technical due diligence of the project.
It is Minco’s goal to seek a development partner to advance the Woodstock project through to the pre-feasibility and final feasibility development stages during this period of transformation within the Chinese and global EMM industry.
MINERAL EXPLORATION AT NORTHERN PENNINES, ENGLAND
Minco’s exploration drilling in the northern Pennines continued until January 2015.
Hole NW001, which was drilled in late 2014 in difficult winter weather conditions to explore the Whitewood-Barneycraig-Williams fault/vein structure in Northumberland, intersected three separate mineral sections at relatively shallow depths within and above the Great Limestone horizon, including a narrow intersection of 0.3 metres averaging 20.9 % zinc at a depth of 187 metres.
Hole NW002, drilled in early 2015, intersected 8.95 metres of zinc lead mineralisation averaging 3.82% zinc and 1.57% lead, including 5.6m averaging 5.80% zinc plus 2.13% lead, within the Great Limestone. The Barneycraig Fault was intersected at a depth of 230 metres within shales which were mineralised over 1.90 metres with a grade of 8.22% zinc, including 1.65 metres with a grade of 9.43% zinc. Above the Great Limestone, the Firestone Sill, a massive sandstone unit, was mineralised over 8.05 metres with a combined zinc/lead grade of 3.41%.
The intersection of reasonable widths of lead and zinc mineralization at three different levels in both of Holes NW001 and NW002 is considered a very positive result and indicates the mineral potential of this large Whitewood-Barneycraig-Williams fault/vein structure which was previously demonstrated by historic mining to be mineralized over a strike length of 3.5 kilometres.
Minco holds 30 million shares (26%) in Xtierra Inc., a company listed on the TSX Venture Exchange. Xtierra holds mineral properties located in the State of Zacatecas in the Central Mineral Belt of Mexico that has generated the bulk of Mexico’s silver production and hosts many world class precious and base metal deposits.
In April, 2015, Minco and Pacific Road Group of Funds, Xtierra’s major shareholders, agreed to extend the due dates of the secured notes of US$965,000 from April 30, 2015 to August 31, 2015, and to provide further advances up to US$15,000 each to fund Xtierra’s property maintenance costs and working capital, to give Xtierra additional time to assess its strategic alternatives.
For further information on Minco, refer to Minco’s website at www.mincoplc.com or contact:
|John Kearney: Chairman and Chief Executive
Danesh Varma: CFO & Company Secretary
Peter McParland: Director – Ireland
Warren MacLeod: Director – President Buchans
John Frain/Alan Connolly: (NOMAD) Davy
Sanif Janjua (Broker) Beaufort Securities
|+1 416 362 6686
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+1 902 472 3520
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+44 (0)20 7382 8387
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