|May 18, 2007|
Airborne Survey Results Received from Granite Lake, Newfoundland
|News Release 2007-7|
Playfair Mining is pleased to report that the company has received results from the recent airborne geophysical survey of its Granite Lake, Newfoundland project.
Unlike Playfair's four high-grade and advanced stage Canadian tungsten deposits (Grey River, Risby, Lened and Clea), the Granite Lake project is an early-stage but highly prospective exploration project.
The Helicopter-borne Impulse EM, Magnetics and Radiometrics survey was carried out for Playfair by Aeroquest Limited of Milton, Ontario. The focus of the survey was a large (5km by 10km) lacustrine geochemical anomaly of tungsten, fluorine, copper, molybdenum, zinc, lead and silver. Playfair received five final maps as the result of this survey (Total Magnetic Intensity, Apparent Resistivity, Impulse High Frequency EM, Radiometrics-Natural Air Absorbtion Dose Rate and Radiometrics - Equivalent Uranium) and will utilize data from these maps within a 2007 program that is currently being planned.
Work on the Granite Lake property in the past includes trench sampling by the Newfoundland Department of Natural Resources that showed up to 4.44% W03 over 5.0 metres. Work on the property between 1978 and 1983 resulted in the discovery of numerous bedrock occurrences of both tungsten and molybdenum.
In addition to developing the above drill program, Playfair is also advancing its Grey River, Newfoundland deposit towards production and is planning an exploration program for its Risby, Yukon property. These two high-grade Canadian tungsten deposits have significant historic resources that pre-date NI 43-101and are therefore not compliant. The Risby which has a total of 48.2 million historical pounds of contained tungsten (2,700,000 tonnes grading 0.81% W03; calculated by HBED in 1982), Grey River which has a total of 10.1 million historical pounds of contained tungsten (473,000 tonnes grading 0.97% W03; calculated by ASARCO in 1970).* The current price of tungsten is approximately US $12 per pound (US $260 per MTU).
About the Company
Playfair owns 4 tungsten deposits*, Grey River (Newfoundland), Risby (Yukon), Lened (Northwest Territories) and Clea (Yukon). In addition, Playfair controls an early stage tungsten project at Granite Lake (Newfoundland) with excellent exploration targets already being identified. Playfair's primary focus has been the Grey River deposit where consistently favourable results have advanced the project towards production.
*Estimates of tungsten resources are historical in nature, 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.
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. 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.
Mr. Michael Moore, P. Geo is the qualified person who has reviewed the technical information contained in this release on behalf of Playfair.
Visit our website at www.playfairmining.com for more information.
ON BEHALF OF THE BOARD
"D. Neil Briggs"
D. Neil Briggs
President and Director
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