TORONTO, Feb. 8, 2013 /CNW/ - Miocene Metals Limited (TSX-V: MII) (the "Company" or "Miocene Metals") today provided the following Shareholder Update and outlined its plans for 2013.

The downturn in the junior resource market that began in 2011 continued through 2012.  In spite of this, Miocene Metals, with the continued support of its major shareholder, Wallbridge Mining Company Limited ("Wallbridge"), was able to complete an active summer exploration program.  This work led to the discovery of widespread copper mineralization on the western part of the MacKenzie property.  Limited work was carried out on the Rogers Creek property, where the large alteration/mineralization system defined by work to date remains open to the north and south.

The Company's current properties and assets are 100% owned and sufficient assessment work has now been completed and filed to hold the key parts of the Rogers Creek, and MacKenzie properties until 2019 and 2021 respectively.

There are signs that global markets are starting to recover with signs of renewed growth in China, a stronger US economy and housing market, and some stability in the European Union. Throughout the current downturn in the mining markets, base and precious metal prices have remained strong, and with the downturn, input costs for exploration and mining projects are starting to decline; setting the stage for a recovery in the junior resource markets.

In January, the Company announced it had reached an agreement with its major shareholder, Wallbridge, on an extension of the terms of the line of credit ("LOC") facility with Wallbridge until September 30, 2014. In addition to the extension of the LOC, the Company also announced its intention to complete a non-brokered private placement to raise gross proceeds totalling up to $300,000 to finance general working capital. These two initiatives will allow the Company to meet corporate needs for the rest of the year and into 2014.

The Company continues in its efforts to secure major partner financing for its exploration efforts on its B.C. properties. Large mineralized porphyry copper-gold alteration systems have been identified on both the MacKenzie and Rogers Creek properties, and these properties will be the focus of future exploration programs, funded either by joint venture partners or further equity issuances.

The fact that:

  • after the current financing we will have the funds in place to meet corporate needs; and,
  • the large size of the mineralized systems on our properties; will, we believe, make us attractive to major partners, or flow-through investors should efforts to secure major partner funding prove unsuccessful.

Currently, subject to securing the necessary financing without unduly diluting our existing shareholders, we plan to conduct work programs on both our Rogers Creek and MacKenzie properties.  Work on Rogers Creek will focus on extending and testing the mineralized system to the north of the 2011 drilling which intersected wide zones of anomalous copper/gold values within what was interpreted as the pyritic shell of a porphyry system.

MRC-006 and MRC-007, the last holes drilled in 2011, both intersected elevated copper and gold values within sparsely disseminated pyrite-chalcopyrite mineralization and porphyry-style alteration (propylitic and chloritic/argillic) assemblages along substantial core lengths (up to 150 metres). (see Press Release dated January 12, 2012). As with holes WRC-001 and WRC-002, alteration assemblages and the intensity of Cu-Au mineralization are consistent with an intersection through the outer pyritic halo of a buried porphyry system. The most interesting mineralization to date was observed in hole MRC-007 (the last hole in the 2011 program), which intersected 380 ppm Cu over 150.9 metres from 345.60 to 496.50 metres, including:

  • 0.050% Cu over 14.7 metres from 365.0 to 379.7 metres
  • 0.172% Cu over 12.1 metres from 422.2 to 434.3 metres
  • 0.067% Cu over 6.0 metres from 447.0 to 453.0 metres

The proposed 2013 program will focus on the area northeast of hole MRC-007, and north of the post-mineral breccia pipe which contains clasts of potassic altered mineralized material, more indicative of the central part of a porphyry system.  Planned work consists of induced polarization geophysical surveying and geologic mapping and sampling, followed by diamond drilling.

On MacKenzie, work will focus on the copper-gold mineralization discovered on the western part of the property during the latter part of the 2012 exploration season. This mineralization, discovered late in the 2012 exploration season consists of scattered quartz-bornite-malachite ± chalcopyrite ± tetrahedrite veins and stringers up to 20 centimetres wide which occur over a strike length of 7.5 kilometres along the edge of the Miocene-age Bridge River pluton and within the host Coast Plutonic Complex. Fourteen of the 27 grab samples collected in this area during the initial reconnaissance of this area last summer have copper values in excess of 0.25% copper with values ranging up to a maximum of 4.34% Cu with gold and silver values ranging from 0.001 to 0.445 g/t Au, and from 3.34 to 4,170 g/t Ag, respectively. (see Press Release dated September 13, 2012).

Planned work in this area, which has never seen modern systematic exploration, includes an airborne magnetic/resistivity survey, mapping and sampling, IP surveys and follow-up drilling.

We look forward to an active and successful 2013.

Alar Soever
Chairman and CEO

The Qualified Person responsible for the technical content of this press release is Shannon Baird, P.Geo., Project Geologist for Miocene Metals.

About Miocene Metals Limited

Miocene Metals is focused on the exploration of six porphyry copper-gold-molybdenum properties in south-western British Columbia that occur within the Tertiary-aged Cascade Magmatic Arc. The Cascade Arc shares many geological characteristics with Tertiary-age porphyry belts that stretch the length of Chile and Peru in South America and hosts some of the world's largest porphyry copper-gold-molybdenum deposits. The Cascade Magmatic Arc hosts a number of significant porphyry Cu-Au and Mo deposits in Washington State, and Alaska (Glacier Peak and Margaret, and Quartz Hill respectively) but remains largely unexplored in British Columbia.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of the Company, including, without limitation, those listed under "Risk Factors" and " Forward-Looking Statements" in the Company's Final Prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, information concerning the Company's expectations and estimates regarding the Company's drilling program, working capital requirements and market outlook. The Company cautions investors about important factors that could cause actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in the Company's Final Prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.


SOURCE Miocene Metals Limited

Copyright 2013 Canada NewsWire

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