|June 22, 2004|
MINCO PLANS TO ESTABLISH SEPARATE SILVER AND BASE METALS SUBSIDIARIES
|Minco Mining & Metals Corporation ("MINCO") (TSX: "MMM") is pleased to announce that it is planning to establish two wholly-owned subsidiaries, Minco Silver Ltd. and Minco Base Metals Ltd., in order to segregate its high quality silver and base metals' assets from its core gold assets. |
The initiative builds upon MINCO's 10 years' experience in China to progressively increase its core gold, silver and base metals' assets as part of a long term minerals diversification strategy. This positions MINCO to become the leading foreign mining company in China.
The recently announced 136-164 million oz in situ silver resource in Fuwan Silver joint venture (May 26, 2004 news release), as estimated by the Chinese government and confirmed by Mr. Lyle Morgenthaler, P.Eng, a Qualified Person, to represent Inferred Resources as per CIM guidelines, is a world class silver deposit in terms of both tonnage and grade. Inferred resource estimates are 17-19 million tonnes at an estimated 200250 grams per tonne silver. MINCO will be testing the limits of this high grade deposit, which is open to the south east, south and south west, and which will form the prime asset of Minco Silver Ltd. As part of its long term strategy, MINCO plans to become a major Chinese silver producer and will be seeking further silver property joint ventures.
Similarly, MINCO has earned 61% interest in a joint venture with a Chinese mining producer for the lower undeveloped portion of the currently operating White Silver Mountain VMS (massive sulphide) mine in Gansu Province (see April 19, 2004 News Release for details). Drilling from underground by Teck Cominco between 1999 and 2001 expanded high grade zinc, lead, copper, silver, gold massive sulphides below the existing mine, which still remains open at depth. MINCO has a right to increase its ownership to 80% with further expenditures. This, with other MINCO base metals' assets, will form the asset base of Minco Base Metals Ltd., both for progressing White Silver Mountain to the development stage and to be the platform for other MINCO base metals' acquisitions.
Dr. Ken Cai, President and CEO, comments: "By setting up the two subsidiaries we will provide shareholders and investors a clear understanding of our long term strategy for gold, silver and base metals' mineral asset diversification in China. Acquisition of the Fuwan Silver joint venture now places MINCO firmly in the world league of potential silver producers."
This news release has been reviewed and approved for release by William Meyer, P.Eng. Chairman of the Board, and designated Qualified Person.