Playfair Mining Ltd.

Playfair Mining Ltd.

May 13, 2008 12:02 ET

Playfair Mining Ltd.: Grey River Drilling Resumes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 13, 2008) - Playfair Mining (TSX VENTURE:PLY) is pleased to announce resumption of drilling of the Grey River # 10 Vein Tungsten deposit. The diamond drill program will include a minimum of 3,000 metres of core drilling, in at least eight holes.

Playfair's primary focus will be to drill the untested down dip extensions of the Tungsten deposit located below the two kilometre long adit. The program also includes some near surface, along strike drill testing. The drill campaign should take six to eight weeks to complete.

Results from the 2008 drill program will greatly enhance Playfair's understanding of the Tungsten deposit, with the ultimate goal of providing a significant increase in the deposit's overall Tungsten resource.

In February of this year, Playfair announced the results of the independent Preliminary Economic Assessment for the 100% owned Grey River Tungsten project. The report, completed by Golder Associates Ltd., was based on the July 2007 Inferred Mineral Resource calculation for the currently defined portion of the Grey River #10 Vein deposit. The Golder report stated that the Net Present Value (NPV) of the deposit is currently positive with a possible total pre-tax cash flow of $US11 Million and NPV of $US 314,000 (or "break-even"), using a 7% discount rate. The study also concluded that project profitability is sensitive to both metal prices and the size of the resource; increases in either have the potential to improve the project value substantially.

While Playfair is very bullish on the price of tungsten and recognizes that an upward move in the price of tungsten can have a dramatic positive impact on the project economics, this drill program to expand the deposit is being done to proactively improve the project dynamics, regardless of the future price of the metal.

To this end, Playfair has planned a drill program with the objective of increasing the size of the #10 Vein deposit, which is currently estimated at an inferred resource of 852,000 tonnes grading 0.86% WO3 (0.2% cut-off) or 16.15 million pounds (732,000 MTU's) of WO3 (Wardop Engineering 2007).

Donald Moore, Playfair's Chairman and CEO, states, "Today's announcement is indicative of our strategy to persistently increase the size of our already substantial high grade tungsten assets. To this end, Playfair will drill both the Grey River and Risby Tungsten deposits, over the next eight month period."

Playfair's Canadian Tungsten Deposits

Playfair owns four high-grade tungsten deposits, all in Canada. Two of the four high-grade deposits (Lened and Clea) have significant historical resource estimates that pre-date NI 43-101 but that have been delineated by well established mining companies. The Grey River and Risby deposits have NI 43-101 Compliant Resource Estimates. In addition, to these four deposits, Playfair has the early stage but highly-prospective Granite Lake Mo-W exploration property. Playfair is very well positioned to benefit from the expanding global demand for tungsten having four high-grade deposits, all located within Canada.

NI 43-101 Compliant Resource Estimates
Classif- Grade Grade Pounds
Property ication %WO3 Tonnes WO3% WO3 MTU's Company
Risby Inferred 0.2 6,385,000 0.46 65,043,600 2,950,200 Wardrop
Resource 2007
Grey Inferred 0.2 852,000 0.86 16,153,700 732,700 Wardrop
River Resource 2007

Historic Resource Estimates(i)
Classif- Grade Grade Pounds
Property ication %WO3 Tonnes WO3% WO3 MTU's Company
Lened Historic 0.4 737,000 1.14 18,523,050 840,200 Union
Resource(i) Carbide
Clea Historic 0.5 257,000 0.93 5,269,000 239,000 Placer
Resource(i) Dome

(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.

Michael Moore P.Geo is the Qualified Person who has reviewed the technical information contained in this News Release on behalf of Playfair.

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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)