|May 24, 2007|
Grey River NI 43-101 Compliant Resource Estimation Within 30 Days
|News Release 2007-10|
Playfair Mining is pleased to announce it has contracted Wardrop Engineering to provide a NI 43-101 Compliant Resource Estimation for Playfair's wholly-owned Grey River, Newfoundland tungsten deposit. Playfair expects to receive and announce the results of this NI 43-101 Compliant Resource Estimation within the next 30 business days.
A historical resource estimation completed on the Grey River deposit indicates that the deposit contains 10.1 million pounds of contained tungsten resources (473,000 Tonnes grading 0.97% WO3). This historical resource calculation, which pre-dates NI 43-101 standards, was completed by ASARCO (American Smelting and Refining Company) based on work that ASARCO did between 1957 and 1970. ASARCO has been a producer of metals for more than 100 years and at the time of developing the Grey River resource calculation was a major producer in the Newfoundland mining industry. The mineral resource is believed relevant but should not be relied upon until verified. The historical estimate does not use mineral resource categories as stipulated in NI 43-101.
Playfair is currently advancing the Grey River project towards production and intends to use the NI 43-101 Compliant Resource Estimation along with historical data and input from metallurgical, mining, engineering and construction consultants to formulate a plan to turn the high-grade Grey River tungsten deposit into the world's next tungsten producer.
Wardrop Engineering is a multidisciplinary consulting engineering firm and has completed projects in more than 40 countries throughout North America, South America, Europe, Africa and Asia. Wardrop was founded in 1955 and is in the business of providing engineering, environmental, information technology and business solutions around the world. Some of the notable high-profile projects that the company has worked on include the Canadian Space Station Team in the development of the Canadian Mobile Base System (MBS), the partial decommissioning of the Chernobyl nuclear reactor in Ukraine, the rebuilding of New York's subway line under the former World Trade Centre and Winnipeg's Provencher Bridge. The company currently has projects underway in Canada, the United States, Chile, Nigeria, Uganda, Ghana, Russia and Uzbekistan. Wardrop has international offices in most of the locations where it has projects and is involved in infrastructure, manufacturing, supply chain, mining, mineral processing, nuclear, oil, gas, power and pulp and paper. The company's North American Operations have achieved ISO 9001:2000 Certification and the company's mining division has experience in all facets of the mining life cycle from exploration through to development, production, closure and reclamation.
In addition to the Grey River tungsten deposit, Playfair owns three additional high-grade tungsten deposits, all in Canada and all with significant historical resource estimates that pre-date 43-101 but that have been delineated by well-established mining companies. These include Risby (Yukon) which has a total of 48.2 million pounds of contained tungsten (2,700,000 tonnes of 0.81% W03), Lened (NWT) which has 18.5 million pounds of contained tungsten (737,000 tonnes of 1.14% W03), and Clea (NWT) which has 5.3 million pounds of contained tungsten (257,000 tonnes of 0.93% W03)*. The current price of tungsten is approximately US $12 per pound. China supplies the world with approximately 85% of the world tungsten demand but the government of China has dramatically restricted the issuance of tungsten export permits due to rapidly rising internal demand for the metal within China. Due to these Chinese export restrictions and the strong global demand for tungsten, the management of Playfair feels that the company is very well positioned with four high-grade deposits, all located within Canada.
Playfair's Canadian Tungsten Deposits
*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
No Stock Exchange has Approved or Disapproved the Information Contained Herein.
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