Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

November 08, 2007 04:00 ET

Playfair Extends Granite Lake Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - Playfair Mining (TSX VENTURE:PLY) is pleased to report, due to the promising visual appearance of core from more than one drill hole, that the Granite Lake, Newfoundland drill program will be extended into December. The decision to extend drilling was made by the Playfair geological team based on the visual examination of drill core that has been extracted to date, for which assays are currently pending.

Drilling will continue to test the property's tungsten, molybdenum and bismuth mineralization which is typically associated with east-west trending, near vertical dipping quartz veins and stockworks. This highly prospective area, which measures an estimated 3,000 metres long by 900 metres wide, includes numerous mineralized bedrock occurrences, identified by both historical and recent Playfair trenching efforts. To date, Playfair has drilled 10 diamond drill holes, totalling about 1,300 metres; a minimum of 15 additional holes are planned.

The property, located in south-central Newfoundland, is an under explored but highly prospective project because of the large size and scope of the tungsten, molybdenum, zinc, copper, lead and silver geochemical anomaly (5 km by 10 km) found on the property and numerous bedrock occurrences of tungsten. Past trench sampling of tungsten enriched quartz veins and quartz stockworks by the Newfoundland Department of Natural Resources reports highlight sampling results as follows: 4.40% WO3 over 5.0 metres, 1.90% WO3 over 5.0 metres, 2.75% WO3 over 1.5 metres and 3.06% WO3 over 2.0 metres.

This past summer's ground exploration program focused on overburden covered anomalies, historical showings and newly identified mineralization. The extensive mechanical trenching resulted in the creation of 26 trenches, totalling an inclusive length of about 1,330 metres, from which 175 channel/chip rock samples were collected. Additionally, a total of 111 surface rock samples were collected during prospecting. Many of the trenches failed to reach bed rock, where soil depths exceeded three metres. Analyses results of the rock samples have defined a priority mineralized target area, measuring about 3.0 by 0.8 kilometres, located within the centre of the property.

For both surface rocks and channel samples, the individual sample tungsten oxide values range from sub-anomalous to 5.49%. Many of the rock samples also contain elevated values of molybdenum, bismuth, silver and base metals; individual sample results range from sub-anomalous to 0.044% molybdenum, greater than 0.02% bismuth, 96.1 ppm silver. Outcrop observations by Playfair have identified two co-related styles of mineralization within the priority target area; high-grade tungsten mineralization associated with individual quartz veins, which can be up to a metre wide and lower-grade mineralization associated with sheeted and stockwork narrow quartz veins over widths exceeding ten metres. Select trench channel sample results which illustrate these two styles of mineralization are as follows: 1.0m of 2.32% WO3, 0.017% Mo (including 0.40m of 5.49% WO3, greater than 0.02% Bi, 94.4ppm Mo); 0.25m of 3.25% WO3, 0.012% Mo & 560 ppm Bi; 1.20m 0.276% WO3 & 95 ppm Bi; 15.65m of 0.049% WO3 (including 5.65m of 0.086% WO3); 3.70m of 0.119% WO3, 133 ppm Bi, 55.2 ppm Mo.

Neil Briggs, President of Playfair, states, "While we must be very cautious in terms of making any assumptions regarding grade from visual observations of drill core, the appearance of visible tungsten minerals in the core combined with previously reported geological data about this anomaly and the results of our own fieldwork has led us to extend this current drill program. We are waiting for assay results from core samples that have been shipped to the SGS Minerals Services laboratory in Toronto early this month and are simultaneously continuing to drill."

About Tungsten

Tungsten is an extremely hard, heavy, steel-grey to white metal that is remarkable for its robust physical properties and vast uses. Tungsten cannot be substituted in many industrial applications. Tungsten has the highest melting point of all metallic elements. Tungsten is a strategic metal and emerging economies such as India and China are consuming increasing amounts of tungsten. The current price of tungsten is approximately US $12 per pound.

Until 2005, China was the world's largest exporter of tungsten concentrate. Rapid industrialization and structural economic changes within China have resulted in the restriction of tungsten exports from China. China is now the world's largest consumer of tungsten. Escalating Chinese consumption, in conjunction with the ongoing demand in the world's principal economies has resulted in a dramatic increase in the price of tungsten. Tungsten prices are quoted per Metric Ton Unit of contained tungsten trioxide (WO3). One MTU contains 10 kilograms of WO3 and is the standard weight measure of the tungsten trade. Ammonium Paratungstate ("APT") is an intermediate product in the production of tungsten metal for which prices are available. A price of US $260 per MTU equates to US $26 per Kilogram or US $12 per pound.

Playfair is very well positioned to benefit from the expanding global demand for tungsten having four high-grade deposits, all located within Canada.

Mr. Michael Moore, P. Geo is the qualified person who has reviewed the technical information contained in this release on behalf of Playfair.

Rock samples were collected under the supervision of Mr. Michael Moore, P.Geo. The surface rock samples were collected both as random chips or rock-saw channels. The samples were bagged, sealed and delivered to Eastern Analytical Ltd. in Springdale Newfoundland where they were dried, crushed and pulped. Samples were crushed to approximately -10 mesh and split using a riffle splitter to approximately 300 grams. The sample split was pulverized using a ringmill to approximately 98% minus 150 mesh. The resulting pulp was then shipped to Acme Analytical Laboratories Ltd. of Vancouver BC, an ISO 9001:2000 accredited laboratory where a 0.5 gm split was subjected to a hot aqua regia leach followed by an analysis of the leachate by ICP-MS. Over limit tungsten and molybdenum values were re-analyzed by subjecting a 0.5 gram pulp to a phosphoric acid leach, followed by an analysis bi ICP-ES. All coarse rejects are currently stored at Eastern Analytical Ltd. facilities and sample pulps are currently stored at the Acme Analytical Laboratories Ltd. facilities.

ON BEHALF OF THE BOARD

D. Neil Briggs, President and Director

No Stock Exchange has Approved or Disapproved the Information Contained Herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Playfair Mining Ltd.
    D. Neil Briggs
    President and Director
    (604) 687-7178 or Toll Free: 1-888-244-6644
    (604) 687-7179 (FAX)
    Website: www.playfairmining.com