Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

February 02, 2006 09:28 ET

Playfair Acquires Two High-Grade Tungsten Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) - Playfair Mining Ltd. (TSX VENTURE:PLY) has advanced significantly in its goal to becoming one of the world's principal developers of new high-grade tungsten resources, through signing an agreement to acquire a suite of tungsten properties from Yukon prospector Ron Berdahl. Berdahl's commitment to tungsten property acquisition dates back more than a decade and it's Playfair's acknowledged good fortune to enter into an agreement to acquire these carefully accumulated properties with historic tungsten resources(a). Playfair has entered into an agreement to purchase a 100% interest in the Risby, Lened and Clea tungsten properties. With the completion of this purchase Playfair will increase the historic resources(a) of tungsten under its control seven times from 0.5 to 3.5 million MTU'S.

Historic resources(a) at Grey River are 473,000 tonnes of 0.97% WO3 (458,500 MTUs), at Risby the historic resources(a) are 2,700,000 tonnes at a grade of 0.81% WO3 (2,187,000 MTUs) and at Lened historic resources(a) are reported at 737,000 tonnes at a grade of 1.14% WO3 (840,200 MTUs).

The properties are to be purchased from Whitehorse-based prospector Ron Berdahl who retains a 3% NSR, one sixth of which may be purchased by Playfair for $500,000. The purchase is subject to completion of satisfactory due diligence by Playfair and to TSX approval. A finders fee is payable in connection with the transaction.

A Metric Tonne Unit ("MTU") is equal to ten kilograms per metric tonne and is the standard weight measure of the tungsten trade. Tungsten prices are generally quoted as US dollars per MTU of Ammonium Paratungstate ("APT") an intermediate product in the production of tungsten metal for which price quotes are generally available. Tungsten prices have surged in the past two years from US$60 to the current level of US$260 per MTU of APT.

The Risby tungsten deposit is scheelite-bearing skarn occurrence in the Ross River area, Yukon accessible by a 25 km tractor road from an all-weather highway. In 1982 Hudson Bay Exploration and Development Company Limited (HBED), based on 40 diamond drillholes, calculated an "ore reserve"(a) of 2.7 million tonnes (2.98 million tons) of 0.81% WO3 using a 0.4% WO3 cutoff grade and a minimum 3 metre thickness. HBED note that: "The drilled intersections have been critically reviewed in terms of geologic continuity, realistic cutoffs and practical mining" and "The ore reserves(a) were calculated using polygonal ore blocks for each intersection".

The Lened deposits are scheelite-bearing skarn occurrences located between the world-class Cantung and Mactung tungsten deposits along the Yukon-Northwest Territories border. A winter road from the town of Tungsten to the Howard's Pass lead-zinc deposit passes within 13 km of the Lened property which is some 40 km north-northwest of Cantung. Extensive work by Union Carbide Corporation included 168 drillholes totaling 23,019 metres (75,522 feet). In 1982 Union Carbide calculated "total mining reserves"(a) of 737,000 tonnes (812,400 tons) having an average grade of 1.14% WO3. These "reserves"(a) occur in three separate but closely related bodies called Western, Stephens and Emma and were calculated by five separate methods. There are a total of 18 known tungsten showings on the property and two of these appear to have significant potential, for example an intersection of 1.75% WO3 over 5.4 metres is reported in one of these locations.

Both HBED and Placer Dome have drilled a siliceous skarn containing tungsten on the Clea property in the Selwyn Tungsten Belt, one of the world's largest tungsten districts. No historical resource calculations are presently available to Playfair for the Clea property.

Playfair President Neil Briggs commented, "Yukon and the adjacent Northwest Territories have an extraordinary tungsten endowment. According to the Yukon Geological Survey the region contains an estimated 20% of known global tungsten. Playfair is delighted to have obtained such significant properties in a world-class tungsten area."

Playfair now controls three advanced stage tungsten projects, Risby, Lened and Grey River with historical resources(a) totaling close to 3.5 million of contained tungsten MTUs and considerable potential to add more with further exploration. In addition Playfair now controls two early stage projects, Granite Lake and Clea, with excellent targets already identified.

Playfair is advancing rapidly towards its goal of becoming become one of the world's principal developers of new high grade tungsten resources.

(a) Mr. Michael Moore, P.Geo is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company. Estimates of tungsten resources are historical in nature, predate and are noncompliant with NI 43-101. Playfair is not treating the historical estimate as current mineral resources or reserves. Playfair has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. However, Playfair believes that these historical estimates provide a conceptual indication of the potential of the occurrences and are relevant to ongoing exploration.

Visit our website at www.playfairmining.com for more information.

ON BEHALF OF THE BOARD

D. Neil Briggs, President and Director

No Stock Exchange Has Approved or Disapproved The Information Contained Herein

Contact Information

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