METALS EXPLORATION PLC
11 July 2007
POSITIVE METALLURGICAL AND INFILL DRILLING RESULTS
AT RUNRUNO PROJECT
The Board of Metals Exploration PLC ("the Company") (AIM: MTL), the
UK based precious and base metals exploration company focused in the
Pacific Rim Region is pleased to report that the Company continues to
receive encouraging results from the current infill drilling
programme and the metallurgical testwork being conducted on its
Runruno gold-molybdenum deposit.
KEY HIGHLIGHTS:
* Positive infill drilling results add to confidence of Runruno
resource model.
* Overall gold recovery of 94.7% from pressure oxidation (POX)
metallurgical tests.
* 48 drill-holes drilled since March for a total of 7,260 metres.
* Assay results from 33 drill-holes still due.
* Potential economic recovery of some molybdenum.
* On target for resource update in September 2007.
Commenting on the results, Jonathan Beardsworth, CEO of Metals
Exploration plc said:
"These results are extremely encouraging, and should provide
investors with evidence that considerable work has been completed at
Runruno in the last few months. The drilling is confirming the
potential of the resource, and the metallurgical test results
demonstrate that we have a viable process route to producing gold
with high recovery values, as well as, possibly, molybdenum credits.
"Scoping studies will now run in parallel with continuing testwork in
order to expand our understanding of likely economics.
"The programme is progressing on time and on budget, and the results
achieved to date reinforce our confidence of being able to meet our
target of a resource update by the end of the third quarter."
Jonathan Beardsworth
Chief Executive Officer
RUNRUNO PROJECT
Resource Definition - Drilling
Since the last announcement of drilling results in March, the Company
has been carrying out an intensive programme of combined Reverse
Circulation (RC) and diamond drilling with the intention of upgrading
the current inferred resource to inferred, indicated and possibly
measured status by the end of September this year.
Since March and up to the end of June, a total of 48 drill-holes
(MXD56-MXRC103) have been completed for a total of 7,260 metres.
Eleven (11) diamond drill-holes were completed during this period for
1,901 metres and 37 RC drill-holes completed for 5,359 metres.
The infill resource drilling is currently being conducted on 50 metre
spaced drill-hole centres. During July, each 50 metre gridline will
be infilled to 25 metre spaced drill-hole centres resulting in a
drill pattern of 25 metre x 50 metre drill-hole spacings. Statistical
analyses will then be carried out to determine the optimum drill-hole
spacing to enable the eventual upgrading of all of the resource to
indicated and measured status.
Resource Definition - Results
Assay results have so far been received for the 16 drill-holes up to
drill-hole MXRC71. There remain a number of results overdue for some
of these drill-holes, as well as outstanding results for the 33
drill-holes MXRC72-MXRC105 still in the pipeline. Laboratories
worldwide are experiencing significant sample submissions and as a
consequence sample analyses and receipt of results currently takes up
to 4-6 weeks.
The Company is highly encouraged as the results received so far
appear to be vindicating the Company's interpretation of geology and
mineralization at Runruno and its resource model. The infill
drilling assay results received to date are reasonably consistent in
grade and widths with the results already received from surrounding,
but wider spaced, diamond drill holes completed last year.
The key assay results from the samples submitted so far from current
drilling programme are summarised in the following table:
+-------------------------------------------------------------------+
| Hole ID | Intercept (metres) | Analyses [4] |
| [1,2] |---------------------------------+-------------------|
| | from | to | width | Au (g/t) | Mo (%) |
|-------------+------------+------------+-------+----------+--------|
| MXD57 | 0.00 | 7.00 | 7.00 | 1.95 | 0.01 |
|-------------+------------+------------+-------+----------+--------|
| MXD58 | 98.70 | 99.70 | 1.00 | 1.89 | 0.03 |
|-------------+------------+------------+-------+----------+--------|
| MXD60 | 12.85 | 15.90 | 3.05 | 2.84 | 0.25 |
| |------------+------------+-------+----------+--------|
| | 91.20 | 94.00 | 2.80 | 4.35 | 0.01 |
| |------------+------------+-------+----------+--------|
| | 133.00 | 135.85 | 2.85 | 1.56 | 0.02 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 16.70 | 2.44 | 0.06 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXD61 | 71.10 | 74.50 | 3.40 | 1.38 | 0.01 |
|-------------+------------+------------+-------+----------+--------|
| MXRC63 | 43.00 | 46.00 | 3.00 | 3.18 | 0.08 |
| |------------+------------+-------+----------+--------|
| | 49.00 | 53.00 | 4.00 | 1.48 | 0.03 |
| |------------+------------+-------+----------+--------|
| | 71.00 | 74.00 | 3.00 | 2.35 | 0.22 |
| |------------+------------+-------+----------+--------|
| | 100.00 | 104.00 | 4.00 | 0.93 | 0.11 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 14.00 | 1.87 | 0.10 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXRC64 | 75.00 | 84.00 | 9.00 | 1.66 | 0.16 |
|-------------+------------+------------+-------+----------+--------|
| MXRC66 | 72.00 | 75.00 | 3.00 | 2.13 | 0.19 |
| |------------+------------+-------+----------+--------|
| | 143.00 | 145.00 | 2.00 | 1.56 | 0.08 |
| |------------+------------+-------+----------+--------|
| | 166.00 | 170.00 | 4.00 | 1.60 | 0.09 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 9.00 | 1.77 | 0.12 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXRC67 | 24.00 | 27.00 | 3.00 | 1.65 | 0.57 |
| |------------+------------+-------+----------+--------|
| | 38.00 | 39.00 | 1.00 | 1.13 | 0.05 |
| |------------+------------+-------+----------+--------|
| | 42.00 | 43.00 | 1.00 | 2.02 | 0.05 |
| |------------+------------+-------+----------+--------|
| | 45.00 | 48.00 | 3.00 | 1.34 | 0.09 |
| |------------+------------+-------+----------+--------|
| | 51.00 | 53.00 | 2.00 | 1.42 | 0.03 |
| |------------+------------+-------+----------+--------|
| | 54.00 | 57.00 | 3.00 | 2.48 | 0.21 |
| |------------+------------+-------+----------+--------|
| | 112.00 | 113.00 | 1.00 | 1.05 | 0.02 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 14.00 | 1.67 | 0.20 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXRC68 | 40.00 | 41.00 | 1.00 | 1.67 | 0.01 |
| |------------+------------+-------+----------+--------|
| | 73.00 | 79.00 | 6.00 | 1.90 | 0.13 |
| |------------+------------+-------+----------+--------|
| | 130.00 | 140.00 | 10.00 | 1.29 | 0.05 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 17.00 | 1.53 | 0.08 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXRC69 | 69.00 | 75.00 | 6.00 | 2.98 | 0.09 |
| |------------+------------+-------+----------+--------|
| | 78.00 | 85.00 | 7.00 | 1.30 | 0.03 |
| |------------+------------+-------+----------+--------|
| | 90.00 | 92.00 | 2.00 | 3.53 | 0.08 |
| |------------+------------+-------+----------+--------|
| | 97.00 | 99.00 | 2.00 | 2.19 | 0.01 |
| |------------+------------+-------+----------+--------|
| | 104.00 | 105.00 | 1.00 | 1.32 | 0.01 |
| |------------+------------+-------+----------+--------|
| | 112.00 | 113.00 | 1.00 | 3.08 | 0.02 |
| |------------+------------+-------+----------+--------|
| | 117.00 | 119.00 | 2.00 | 2.13 | 0.00 |
| |------------+------------+-------+----------+--------|
| | 128.00 | 132.00 | 4.00 | 1.21 | 0.02 |
| |------------+------------+-------+----------+--------|
| | 163.00 | 167.00 | 4.00 | 1.67 | 0.03 |
| |-------------------------+-------+----------+--------|
| | composited intercept | 29.00 | 2.02 | 0.04 |
| | [3] | | | |
|-------------+-------------------------+-------+----------+--------|
| MXRC70 | 47.00 | 69.00 | 22.00 | 2.34 | 0.12 |
|-------------+------------+------------+-------+----------+--------|
| MXRC71 | 108.00 | 112.00 | 4.00 | 5.01 | 0.16 |
+-------------------------------------------------------------------+
Notes:
[1] Drill-holes prefixed with MXD were drilled by diamond coring
wireline methods and samples consist of diamond drill core with a
minimum core diameter size of HQ3 (61mm).
[2] Drill-holes prefixed with MXRC were drilled by Reverse
Circulation (RC) methods using a face-sampling hammer and samples
consist of 1-metre interval, bagged drill chips from a 5¿"
drill-hole.
[3] Reporting of the above composited intercepts was determined by
applying an upper and lower boundary defined by a low grade cut-off
of 0.7g/t Au. Some composited intercepts include single metre,
internal intercept grades of less than 0.7g/t Au. Isolated,
single-metre intercepts are not reported unless considered to be
significant. No high grade cut-off has been applied to the individual
gold assays.
[4] Gold is analysed by classical screen fire assay method, and
Molybdenum is analysed by standard ICP-OES method.
Resource Estimation
Consulting geological groups have been approached to conduct audits
on the Company's exploration protocols, including drilling and
sampling methodologies, and also to carry out an independent resource
estimation prior to the end of September.
Metallurgy Testwork
Results of pressure oxidation (POX) testwork have just been received
from the Company's consulting metallurgist.
POX testwork has been completed on a bulk flotation concentrate
produced from a composite sample of primary sulphide mineralisation.
At 99.4% oxidation the overall gold recovery by gravity concentration
+ flotation + pressure oxidation of sulphide mineralisation flotation
concentrate, followed by cyanidation of the oxidised concentrate was
94.7% from a calculated head grade of 2.07g/t Au.
Interestingly, the laboratory reported that some molybdenum was
solubilised during the pressure oxidation of the flotation
concentrate. The possibility of recovering the
solubilised molybdenum will be investigated further.
The Company is highly encouraged by these results.
Bacterial oxidation testwork on the same concentrate sample is
currently in progress.
QUALIFIED/COMPETENT PERSONS
Gary Powell (a Director of the Company) has been involved in the
mining and exploration industry for more than 24 years. He has a
Bachelor of Applied Science degree in geology and is a member of the
Australasian Institute of Mining and Metallurgy and the Australasian
Institute of Geoscientists. He has compiled, read and approved the
technical disclosure in this regulatory announcement.
For more information:
Jonathan CEO + 44 (0) 20 7927 6690
Beardsworth + 44 (0) 7747 101 552
Jonathan Anderson Investor Relations + 44 (0) 20 7927 6690
+ 44 (0)7950 410 680
Adrian Hadden Collins Stewart Europe + 44 (0) 20 7523 8350
Limited
Charles Vivian Pelham PR + 44 (0) 20 7743 6672
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