|June 28, 2007|
Scoping Study Underway at Playfair's Grey River Tungsten Deposit
|Playfair Mining is pleased to announce that the company has retained Golder Associates Ltd. to complete a Scoping Study to determine the economic potential of Playfair's 100% owned tungsten deposit located in Grey River, Newfoundland and to establish a program for further development of the deposit. This Scoping Study or Preliminary Economic Assessment (in accordance with Ni 43-101 terminology) is scheduled for completion within 90 business days.|
The Scoping Study will provide an overall preliminary economic assessment and also outline a plan by which the project will be advanced towards production. It will consider all development aspects, including geotechnical, mining methods, process engineering, infrastructure, environmental, capital costs, operating costs and economics. It will be based primarily on the block model, prepared as part of the resource estimate by Wardrop Engineering.
Neil Briggs, President of Playfair, states, "The retention of Golder Associates to complete a Scoping Study at Grey River is a very significant event for Playfair. Last week, Playfair announced extremely positive news regarding the completion of a NI 43-101 Compliant Mineral Resource Estimate at Grey River that detailed an increase of 59.3% in contained tungsten at Grey River versus the historical ASARCO estimate*. With these excellent results in hand, we are now further advancing the project through the commencement of this Scoping Study. The receipt of this NI 43-101 compliant report will be an extraordinarily important event for the company as we advance towards production. Our goal at Playfair is to become the next tungsten producer outside of China and we are aggressively pursuing this vision as evidenced by today's announcement."
Golder Associates is a global group specializing in ground engineering and environmental services. Golder employs over 5,500 people who operate from more than 130 offices across Africa, Asia, Australia, Europe, North America and South America and has experienced steady growth in the number of people employed and its technical capabilities. Golder's comprehensive range of geotechnical services is combined with expertise in resource modeling, mining engineering, waste management and environmental engineering to provide integrated mining solutions for open pit and underground mines. Employee-owned since their formation in 1960, Golder has created a unique culture with pride in ownership, resulting in long-term organizational stability.
Playfair's Canadian Tungsten Deposits
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 NI 43-101 but that have been delineated by well-established mining companies.
NI 43-101 Compliant Resource Estimate
Historic Resource Estimates*
*Estimates of historic tungsten resources 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. The current price of tungsten is approximately US $12 per pound.
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 forwhich prices are available. A price of US$260 per MTU equates to US $26 per Kilogram or US $12 per pound.
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.
Michael Moore P.Geo is the Qualified Person who has reviewed the technical information contained in this News 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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