Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

April 10, 2007 17:06 ET

Playfair Mining Ltd.: Environmental Baseline Study in Grey River, Newfoundland

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2007) - Playfair Mining (TSX VENTURE:PLY) is pleased to announce the expansion of responsibilities of Jacques Whitford Ltd., environmental consultants, to design and carry out a baseline environmental study for the company's Grey River tungsten project.

The commencement of this baseline environmental study will be the first step towards the completion of an Environmental Assessment for the project. The company has consulted with Jacques Whitford Ltd. (www.jacqueswhitford.com), who has been contracted by the company to begin the permitting process necessary for the company's planned underground drill program. The retention of Jacques Whitford Ltd. to undertake the baseline study is an important step in achieving the company's goal to advance Grey River through environmental assessment and into production.

Playfair's Grey River property is a high-grade tungsten deposit with historical resources(i) (calculated by ASARCO in 1970) totaling more than 10 million pounds (458,000 Metric Ton Units) of tungsten. In addition to commencing the baseline study on the property, Playfair has recently worked onsite to rehabilitate road and underground portal access, which will allow the company to take a 5 tonne representative sample above the current adit for metallurgical testing. With planned activity in Grey River increasing as the project advances towards production, Playfair has started to search for a Project Manager whose duties will include drafting a detailed mining plan for this deposit.

In addition to Grey River, Playfair owns three other high-grade tungsten deposits in Canada. The Risby, Yukon deposit is the largest of these high-grade deposits with more than 48 million pounds or 2,187,000 MTUs (2.7 million tonnes at 0.81% WO3) of historical high grade tungsten resources(i) (calculated by HBED in 1982).

Playfair's rapid advancement of Grey River comes at a time of very strong tungsten market, with current tungsten prices at approximately US $11.79 per pound (US $260 per MTU).

About the Company

Playfair owns 4 tungsten deposits(i), Grey River (Newfoundland), Risby (Yukon), Lened (Northwest Territories) and Clea (Yukon). In addition, Playfair controls an early stage tungsten project at Granite Lake (Newfoundland) with excellent exploration targets already being identified. Playfair's primary focus has been the Grey River deposit where consistently favourable results have advanced the project towards production.



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Property Tonnes % WO3 Pounds MTU's Company
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Grey River 473,000 0.97 10,108,091 458,500 ASARCO 1970
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Risby 2,700,000 0.81 48,214,602 2,187,000 HBED 1982
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Lened 737,000 1.14 18,523,049 840,200 Union Carbide 1986
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Clea 257,000 0.93 5,268,994 239,000 Placer Dome 1980
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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.

About Tungsten

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 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. 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 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$11.79 per pound.

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