Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

January 08, 2007 16:43 ET

Playfair Completes Granite Lake Airborne Survey

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Playfair Mining (TSX VENTURE:PLY) is pleased to report that it has completed a helicopter-borne airborne survey of its entire Granite Lake property in south-central Newfoundland. Aeroquest International Limited conducted this combined Electromagnetic (Impulse), Magnetic Gradiometer & Radiometric survey of the property.

Playfair will use the results from this airborne survey along with previously compiled data from this highly-prospective property to implement a detailed exploration program. The focus of the aggressive exploration planned for Granite Lake is a large (5 km by 10 km) lacustrine geochemical anomaly of tungsten, fluorine, copper, molybdenum, zinc, lead and silver.

Previous work on this property includes trench sampling by the Newfoundland Department of Natural Resources that showed up to 4.44 percent WO3 over 5.0 meters. In addition to this high-grade sample of 4.44 percent WO3 over 5.0 meters work on the property between 1978 and 1983 resulted in the discovery of numerous bedrock occurrences of both tungsten and molybdenum. According to the NL Government report, Tungsten-Molybdenum Mineralization in the Granite Lake - Meelpaeg Lake Area (NTS 12A/2,7), Newfoundland, "The widespread distribution of mineral occurrences, boulders, lake-sediment, stream, and soil anomalies in the Granite Lake area clearly indicate a potential for significant granophile mineralization. This is corroborated by the geochemical signatures indicating the widespread metasomatism of the superficially unaltered granitoids throughout the area" (J. Tuach, 1996).

When compared to Playfair's four 100% owned advanced-stage tungsten properties in Canada where combined historical resources(i) total more than 3.7 million of contained Metric Tonne Units of tungsten, Granite Lake is an early-stage but very exciting project. Playfair's aggressive focus on this large multi-element geochemical anomaly in Granite Lake reflects the company's objective to provide shareholders with exposure to early-stage exploration and new potential discoveries concurrent with providing ownership of advanced stage tungsten deposits that are being moved towards production.

Current Tungsten Market

Playfair Mining's focus on advancing its Canadian tungsten projects towards production comes at a time of strong tungsten prices (relative to prices experienced prior to 2005). Tungsten is an extremely hard, heavy, steel-grey to white metal that is remarkable for its robust physical properties and vast uses and cannot be substituted in many industrial applications. Tungsten is a strategic metal and emerging economies such as India and China are consuming increasing amounts of tungsten. Until 2005, China was the world's largest exporter of tungsten concentrate but rapid industrialization within China, structural economic changes, and changes in economic policies towards industry 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 along with the supply issues noted above, has resulted in increases in the price of tungsten. Tungsten prices have increased significantly from a level of US$65-95/MTU in 2004 to an average price of approximately US$250 in 2006. Tungsten prices are generally quoted per Metric Ton Unit ("MTU" - one hundredth of a metric ton of 1,000 kilograms) of contained tungsten trioxide (WO3) in Ammonium Paratungstate. One MTU contains 10 kilograms of WO3 and is the standard weight measure of the tungsten trade. Ammonium Paratungstate is an intermediate product in the production of tungsten metal for which prices are available. A price of US$250 per MTU equates to US$25 per kilogram or US$11.26 per pound.

About the Company

Playfair owns 4 tungsten deposits(i), Grey River (Newfoundland), Risby (Yukon), Lened (Northwest Territories) and Clea (Yukon). Playfair's primary focus has been the Grey River deposit where consistently favourble results have advanced the project towards production.



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Property Tonnes % WO3 MTU's Company
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Grey River 473,000 0.97 458,500 ASARCO 1970
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Risby 2,700,000 0.81 2,187,000 HBED 1982
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Lened 737,000 1.14 840,200 Union Carbide 1986
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Clea 2257,00 0.93 239,000 Placer Dome 1980
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Total 4,167,000 0.89 3,724,700
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(i)Estimates of tungsten resources are historical in nature, predate and are noncompliant with NI 43-101. Playfair is not treating the historical estimates 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.

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

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.

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