|July 18, 2007|
Playfair Starts Exploration in Granite Lake
Playfair Mining is pleased to announce that exploration will commence on the company's Granite Lake, Newfoundland property on Tuesday, July 24th, 2007.
This work program in Granite Lake will involve property wide prospecting and follow up of historical showings with extensive mechanical trenching of showings, veins, and overburden covered anomalies.
The main focus of exploration during this program is a large (5km by 10km) geochemical anomaly of tungsten, copper, molybdenum, zinc, lead, silver and fluorine. 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. Between 1978 and 1983, numerous bedrock occurrences of both tungsten and molybdenum were found on the Granite Lake property.
Neil Briggs, President of Playfair Mining, explains, "Today's announcement that Playfair is starting exploration at Granite Lake is indicative of our goal to maintain an aggressive exploration component within the company while simultaneously advancing our known deposits. Right now, while waiting for completion of the NI 43-101 Compliant Resource Estimate for the Risby Deposit and while also waiting for the Preliminary Economic Assessment of the Grey River Deposit, we are starting exploration at Granite Lake. We consider Granite Lake to be an early stage but highly prospective exploration target that will be extremely exciting to explore. The multi-element geochemical anomaly at Granite Lake is large and past groundwork has turned up extremely high grade tungsten samples. Playfair's field crew will now systematically sample the surface showings and trenches with a goal of being able to report an established strike-length, width and grade of mineralized zones. The purpose of the initial work is to develop drill targets for a subsequent drill program."
Playfair is currently waiting for the results of a NI 43-101 Compliant Resource Estimate for the company's wholly-owned Risby, Yukon tungsten deposit. On July 12th, 2007, the company announced that these results are expected within 30 business days. Playfair is also waiting for the completion of a Scoping Study (Preliminary Economic Assessment) for the company's wholly-owed Grey River, Newfoundland tungsten deposit. On June 18th, 2007, the company announced that the Scoping Study is expected within 90 business days. While waiting for these results, the company will now aggressively work on the highly prospective Granite Lake property to further enhance potential upside for shareholders.
Playfair's Canadian Tungsten Deposits
Playfair owns four high-grade tungsten deposits, all in Canada. Three of the four high-grade deposits (Risby, Lened and Clea) have significant historical resource estimates that pre-date NI 43-101 but that have been delineated by well established mining companies. One of the four deposits (Grey River) has a NI 43-101 Compliant Resource Estimate. In addition the these four deposits, Playfair has an early stage but highly-prospective exploration property (Granite Lake).
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 for which 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