Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

January 16, 2008 08:55 ET

Playfair Mining Ltd.: 167 Metre Molybdenum Discovery Hole at Granite Lake, NFLD

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Playfair Mining (TSX VENTURE:PLY) is pleased to announce that it has encountered very significant molybdenum mineralization during its first drill program at Granite Lake in Central Newfoundland.

The discovery hole, GL-07-23 was mineralized throughout and intersected 167.1 metres grading 0.033% Mo (0.054% MoS2) from 11.8 metres to 178.9 metres. Included within this intersection is 58.5 metres grading 0.050% Mo (0.083% MoS2). This molybdenum discovery has resulted from a drill program that was designed to test Granite Lake primarily for tungsten mineralization.

Don Moore, Chairman of Playfair, states, "Playfair owns four advanced stage, high grade tungsten deposits in Canada, two of which have NI 43-1-101 Compliant Resource Estimates. While advancing these deposits towards production and expanding these deposits through drilling is the focus of the company, we continue to look for exploration upside in early stage projects such as Granite Lake. Today's news of a molybdenum discovery at Granite Lake is indicative of these efforts and we will continue to drill at Granite Lake based on this discovery hole, now targeting both molybdenum and tungsten in the area."

A very large (about 80 square kilometre) multi-element geochemical anomaly was discovered at Granite Lake by a Federal/Provincial regional lake sediment survey carried out in 1978. Subsequent follow-up work by a number of exploration companies showed bedrock mineralization, glacial float mineralization and soil geochemical anomalies in an approximately 3 square kilometre area in the centre of the regional geochemical anomaly. Recent detailed work by Playfair, including trenching, outlined a number of high priority drill targets within this area.

The high priority area is bisected by the roughly North-South trending Meelpaeg Lake Fault Zone (MLFZ). Playfair's drilling suggests that the MLFZ is of considerable significance in controlling the location of the bedrock mineralization. To the East of the MLFZ Playfair has drilled a total of 15 holes, of which 14 show visual tungsten mineralization. Assays received to date show WO3 values are usually narrow and less than 0.5% WO3 although drill hole GL-07-17 intersected 85.6 metres grading 0.024% WO3. Assay results from several holes are pending and will be reported when complete.

The first hole drilled to the west of the MLFZ (GL-07-23) was mineralized for its entire length and intersected 167.1 metres grading 0.033% Mo (0.054% MoS2) from 11.8 to 178.9 metres. Included within this intersection is 58.5 metres from 56.0 to 114.5 metres grading 0.050% Mo (0.083% MoS2). A number of additional drillholes have been completed and assay results are pending. Drilling was halted over the holiday period and was restarted January 15th.

This is the first significant molybdenum discovery in this part of Newfoundland and Playfair has consequently acquired by staking an additional 1,036 claims totalling 265.75 km2 in the area. Playfair now controls five separate claim blocks in the Granite Lake area, which cover multi-element geochemical anomalies including both tungsten and molybdenum.

Details of the drillhole locations, Playfair's property and Playfair's new staking can be seen on Playfair's website at www.playfairmining.com.

Granite Lake has the advantage of excellent logistics. The area is accessible by an all weather road and partial logging has provided ready access through a network of logging roads. A newly completed 40 MW hydroelectric facility is located on the southeast corner of the property. There are no aboriginal claims in the area and no major environmental concerns.

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

Core samples were collected under the supervision of Mr. James Harris, P.Geo. NQ diameter core was descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. One-half of the core is preserved on site in core boxes for verification and future reference. The samples comprising the other half of the core 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 SGS Canada Inc of Toronto ON, an ISO 17025 accredited laboratory, where a 0.2 gm split was subjected to a four acid (near total digestion), then analyzed for 40-elements by ICP-AES & ICP-MS. All coarse rejects are currently stored at Eastern Analytical Ltd. facilities and sample pulps are currently stored at the SGS 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