|April 19, 2004|
WHITE SILVER MOUNTAIN PROJECT UPDATE
|Minco Mining & Metals Corporation (TSX: MMM) is pleased to announce an update on its White Silver Mountain ("WSM") project. The WSM is a VMS style massive sulphide mineral deposit located in the Baiyin District of Gansu Province, China. Mineralization consists of copper, lead and zinc with high precious metal credits. The upper developed portion (in which Minco does not have an interest) is in production at the rate of 1,200 tons per day and operated by Baiyin Non-Ferrous Metals Corporation ("BNMC"). The resource in the upper developed portion is estimated by the BNMC to be 10 mil tonnes grading 1.1% copper, 3.3% lead, 5.1% zinc, 2.1 grams per tonne gold and 100 grams per tonne silver. These resource estimates are made in accordance with Chinese geological guidelines and do not necessarily comply with National Instrument 43-101 and CIM mineral resources categories. Mineralization continues down dip and along strike below the lowest mine level with grades increasing with depth. In 1996, Minco entered into an agreement with BNMC wherein the Company had the right to earn an 80% interest in any new mineralization developed below the existing mine workings (1400 meter level) by spending US$4.8 mil. over six years. Pursuant to a joint venture agreement with Teck Cominco dated February 20, 1996, the Company and/or Teck Cominco spent Cdn$3.7 million primarily on district wide exploration and detailed underground drilling of the down dip extensions of the massive sulphide lenses in the White Silver Mountain mine. Underground drilling was successful in expanding the mineralized zones down dip where they remain open (see news releases dating from February 8, 1999 to May 9, 2001). In early 2001, Teck Cominco withdrew from the project due to both depressed base metal and precious metal prices and poor market conditions and leaving Minco with a 61% project interest. |
The WSM project is the subject matter of a Technical Report dated December 1, 2003 prepared by Kenneth R. Thorsen, P. Eng., in accordance with National Instrument 43-101 and is in the process of being filed by Minco on SEDAR.
Minco is presently reviewing the White Silver Mountain Project in the light of strong demand and high prices for all metals including copper, zinc, lead, gold and silver. There is a particularly high level of interest in the domestic production of these metals in the Baiyin District where BNMC's copper/zinc/lead smelters are located.
The interest in base metals is high and Minco is presently considering various options which include proceeding on its own, proceeding with a joint venture partner, funding the project separately, etc. The results of an internal review and recommendations will be made to the Minco Board of Directors in the coming days.
This news release has been reviewed and approved for release by William Meyer, P.Eng. Chairman of the Board, and designated Qualified Person.