Playfair Mining Ltd.

Playfair Mining Ltd.

July 12, 2007 07:55 ET

Playfair Mining Ltd.: Risby NI 43-101 Compliant Resource Estimate Within 30 Days

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - Playfair Mining (TSX VENTURE:PLY) is pleased to announce that it has contracted Wardrop Engineering to provide a NI 43-101 Compliant Resource Estimate for Playfair's wholly-owned Risby, Yukon tungsten deposit. Playfair expects to receive and announce the results of this NI 43-101 Compliant Resource Estimate within the next 30 business days.

A historical resource estimate completed on the Risby deposit indicates that the deposit contains 48.2 million pounds of contained tungsten resources (2,700,000 Tonnes grading 0.81% W03). This historical resource calculation, which pre-dates NI 43-101 standards, was completed by Hudson Bay Exploration and Development (HBED) in 1982. The mineral resource is believed relevant but should not be relied upon until verified. The historical estimate does not use mineral resource categories as stipulated in NI 43-101.

Neil Briggs, President of Playfair, states, "On Thursday, May 24th, Playfair announced that a NI 43-101 Resource Estimate for the company's wholly-owned Grey River, Newfoundland tungsten deposit would be completed within 30 business days. On June 19th, we announced the results of that independent estimate. Those Grey River results represented a milestone event for the company as Playfair advances Grey River towards our goal of becoming the world's next tungsten producer outside of China. Likewise, today's news that we are expecting a NI 43-101 Compliant Resource Estimate within 30 days for the Risby deposit is extremely important and we are eagerly awaiting the results of this report. The engineering firm that we have contracted to undertake this work at Risby is a world-renowned firm and we are pleased to be defining and advancing these projects with such high-quality engineering groups involved."

Wardrop Engineering is a multidisciplinary consulting engineering firm and has completed projects in more than 40 countries throughout North America, South America, Europe, Africa and Asia. Wardrop was founded in 1955 and is in the business of providing engineering, environmental, information technology and business solutions around the world. Some of the notable high-profile projects that the company has worked on include the Canadian Space Station Team in the development of the Canadian Mobile Base System (MBS), the partial decommissioning of the Chernobyl nuclear reactor in Ukraine, the rebuilding of New York's subway line under the former World Trade Centre and Winnipeg's Provencher Bridge. The company currently has projects underway in Canada, the United States, Chile, Nigeria, Uganda, Ghana, Russia and Uzbekistan. Wardrop has international offices in most of the locations where it has projects and is involved in infrastructure, manufacturing, supply chain, mining, mineral processing, nuclear, oil, gas, power and pulp and paper. The company's North American Operations have achieved ISO 9001:2000 Certification and the company's mining division has experience in all facets of the mining life cycle from exploration through to development, production, closure and reclamation.

In addition to awaiting the results of the NI 43-101 Compliant Resource Estimate for the Risby tungsten deposit, Playfair is also awaiting the results of a Preliminary Economic Assessment (PEA) for the Grey River tungsten deposit and is formulating an aggressive exploration program for the company's early stage but highly-prospective Granite Lake project.

Playfair's Canadian Tungsten Deposits

In addition to the Risby tungsten deposit, Playfair owns three additional high-grade tungsten deposits, all in Canada. Two of the three 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. One of the three additional deposits (Grey River) has a NI 43-101 Compliant Resource Estimate.

NI 43-101 Compliant Resource Estimate

Class- Grade Grade Pounds
Property ification %WO3 Tonnes WO3% WO3 MTU's Company
Grey River Inferred Wardrop
#10 Vein Resource 0.2 852,000 0.86 16,153,700 732,700 2007

Historic Resource Estimates(i)

Class- Grade Grade Pounds
Property ification %WO3 Tonnes WO3% WO3 MTU's Company
Risby Historic HBED
Resource(i) 0.4 2,700,000 0.81 48,214,600 2,187,000 1982
Lened Historic Union
Resource(i) 0.4 737,000 1.14 18,523,050 840,200 Carbide
Clea Historic Placer
Resource(i) 0.5 257,000 0.93 5,269,000 239,000 Dome

(i) Estimates of historic tungsten resources 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. The current price of tungsten is approximately US $12 per pound.

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 $12 per pound.

Due to these Chinese export restrictions and the strong global demand for tungsten, the management of Playfair feels that the company is very well positioned with four high-grade deposits, all located within Canada.

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)