Playfair Mining Ltd.
TSX VENTURE : PLY

Playfair Mining Ltd.

November 08, 2006 09:26 ET

Playfair to Explore Granite Lake

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) - Playfair Mining (TSX VENTURE:PLY) is pleased to report that it is immediately commencing an aggressive exploration program on its Granite Lake property in south-central Newfoundland. The focus of this exploration program is a large (5 km by 10 km) lacustrine geochemical anomaly of tungsten, zinc, copper, molybdenum, lead and silver.

Between 1978 when the anomaly was discovered and 1983 five different mining companies explored this area and discovered numerous bedrock occurrences of both tungsten and molybdenum on the property. There are more than 20 bedrock showings of tungsten on this property and trench sampling conducted by the Newfoundland Department of Natural Resources showed up to 4.44 percent WO3 over 5.0 meters. In comparison with the company's four 100% owned advanced-stage tungsten properties where combined historical resources(i) total over 3.7 million of contained tungsten Metric Tonne Units, Granite Lake has been relatively under-explored but presents significant early-stage exploration potential because of the large size and scope of the tungsten, zinc, copper, molybdenum, lead and silver anomaly found on the property. As the first component of the exploration plans for Granite Lake, Playfair has awarded Aeroquest International Limited a contract to conduct a helicopter-borne combined Electromagnetic (Impulse), Magnetic Gradiometer & Radiometric survey of the entire Granite Lake property.

Playfair's exploration of this extensive multi-element geochemical anomaly is occurring at the same time as it continues to advance two of its four high grade tungsten deposits, also in Canada, with ongoing work programs. Work on Playfair's 100% owned Grey River, Newfoundland deposit is currently focused on the compilation of current and historic data in preparation for a 43-101 resource estimate, metallurgical testing on a bulk sample at SGS Laboratories in Cornwall, England and an analysis of costs and data collection in anticipation of launching a drill program to expand the deposit below the existing adit. In addition to advancing the Grey River deposit, the company has recently completed the first phase of its drill program on its wholly owned Risby, Yukon tungsten deposit with assays pending.

The exploration now starting on Playfair's highly prospective Granite Lake property is indicative of the company's strategy to continue aggressive exploration efforts on early-stage properties while it also works towards its separate goal of systematically moving its advanced stage tungsten properties towards production in a cost-effective and efficient manner.

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 important industrial applications. 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 policy towards industry have resulted in Chinese exports of tungsten shrinking dramatically. China is now the world's largest consumer of tungsten. Chinese consumption, in conjunction with 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 increased significantly in 2005 from a level of US$65-95/MTU in 2004 to US$290 in mid-2005 and are currently strong. 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). 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$250 per MTU equates to US$25 per kilogram or US$11.36 per pound.

About the Company

Playfair owns 4 tungsten deposits, Grey River (Newfoundland), Risby (Yukon), Lened (Yukon) and Clea, (Northwest Territories). Playfair's exploration has so far been mainly focused on the Grey River deposit where consistently favourable results have advanced the project towards underground exploration.

(i) Estimates of tungsten resources are historical in nature, predate and are noncompliant with N43-101. 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.

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