Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

August 10, 2005 12:16 ET

Playfair Begins Work on High Grade Tungsten Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Playfair Mining Ltd. (TSX VENTURE:PLY) owns 100% of what the Geological Survey of Canada, in 1984, described as "one of the largest typical wolframite deposits in Canada". Wolframite is a principle ore of tungsten and given the recent increases in the price of tungsten and the excellent forecast supply and demand fundamentals Playfair is making the advancement of their important and significant tungsten property a key Company priority.

The deposit is located on ice-free tidewater adjacent to the fishing village of Grey River (population of about 350 people) on the south coast of Newfoundland. Grey River is serviced daily by coastal boat from Burgeo, a coastal port about 40 km to the west. A highway links Burgeo to the airport town of Stephenville and the Trans Canada Highway approximately 125 km to the north.

Playfair's Plans

Playfair's initial phase of tungsten field exploration will start during the week of August 15, 2005 under the supervision of Consulting Geologist James Harris P.Geo, a Qualified Person under National Instrument 43-101 guidelines. Mr. Harris will supervise the cleaning and re-sampling of Asarco trenches in order to verify Asarco's reported results. In addition a bulk sample will be taken for metallurgical testing. Asarco reported over 300 veins and veinlets in the immediate area; Mr. Harris will relocate and examine the more prominent of these occurrences.

Playfair has engaged Roscoe Postle Associates, an independent firm of Geological and Mining Consultants, to review the Asarco data and recommend a work program to produce data of sufficient quality and quantity to allow the calculation of a NI 43-101 compliant resource.

Preliminary mining and milling plans are being developed by Playfair's consultants to maximize the value of Playfair's 100% owned Grey River Tungsten deposit.

Property History

The Grey River property has been sporadically explored since the discovery of tungsten on the property in 1954. American Smelting and Refining Company (Asarco) explored the tungsten potential of the property from 1957 to 1970. Initial work discovered over 300 tungsten showings with five veins being considered significant. Trenching and drilling was followed by underground exploration on one vein. From 1967 to 1969 Asarco drove a 1,920 metre long adit into and along the "Main Vein" and completed extensive underground drifting, raising, channel and bulk sampling.

Asarco calculated a "mineable (diluted and recoverable) reserve" in the "Main Vein", above adit level only, of 520,000 tons grading 0.97% WO3. As the foregoing estimate was completed prior to the implementation of NI 43-101 it should not be relied upon. This historic reserve estimate is considered to be relevant, and is presumed reliable based on the volumes of work completed. Playfair has not done sufficient work to verify the resource estimate.

Escalating Tungsten Prices

The price of tungsten concentrate has significantly increased over the past several months to a reported current spot price in excess of US$ 10 per lb of WO3 or US$220 per mtu of WO3. A metric ton unit (mtu) of tungsten trioxide (WO3) is defined as containing 10 kg or 22 lbs of WO3 thus being equivalent to a grade of 1.0% WO3. An mtu of WO3 contains 7.93 kilograms of tungsten metal.

Although tungsten is currently in a rising price trend, (see www.metalprices.com), there cannot be any assurance that the price of tungsten will continue to increase or even maintain current levels and price volatility could occur. Professional metal companies such as Roskill (www.roskill.co.uk) maintain websites that generally provide a balanced view of historical and predicted metal price trends.

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

Playfair is aggressively advancing its 100% owned Canadian tungsten deposit towards production.

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.
    Wayne Meredith
    (604) 687-7178 or Toll Free: 1-888-244-6644
    (604) 687-7179 (FAX)