|May 13, 2008|
Grey River Drilling Resumes
|News Release 2008-06|
Playfair Mining is pleased to announce resumption of drilling of the Grey River # 10 Vein Tungsten deposit. The diamond drill program will include a minimum of 3,000 metres of core drilling, in at least eight holes.
Playfair's primary focus will be to drill the untested down dip extensions of the Tungsten deposit located below the two kilometre long adit. The program also includes some near surface, along strike drill testing. The drill campaign should take six to eight weeks to complete.
Results from the 2008 drill program will greatly enhance Playfair's understanding of the Tungsten deposit, with the ultimate goal of providing a significant increase in the deposit's overall Tungsten resource.
In February of this year, Playfair announced the results of the independent Preliminary Economic Assessment for the 100% owned Grey River Tungsten project. The report, completed by Golder Associates Ltd, was based on the July 2007 Inferred Mineral Resource calculation for the currently defined portion of the Grey River #10 Vein deposit. The Golder report stated that the Net Present Value (NPV) of the deposit is currently positive with a possible total pre-tax cash flow of $US11 Million and NPV of $US 314,000 (or "break-even"), using a 7% discount rate. The study also concluded that project profitability is sensitive to both metal prices and the size of the resource; increases in either have the potential to improve the project value substantially.
While Playfair is very bullish on the price of tungsten and recognizes that an upward move in the price of tungsten can have a dramatic positive impact on the project economics, this drill program to expand the deposit is being done to proactively improve the project dynamics, regardless of the future price of the metal.
To this end, Playfair has planned a drill program with the objective of increasing the size of the #10 Vein deposit, which is currently estimated at an inferred resource of 852,000 tonnes grading 0.86% WO3 (0.2% cut-off) or 16.15 million pounds (732,000 MTU's) of WO3 (Wardop Engineering 2007).
Donald Moore, Playfair's Chairman and CEO, states, "Today's announcement is indicative of our strategy to persistently increase the size of our already substantial high grade tungsten assets. To this end, Playfair will drill both the Grey River and Risby Tungsten deposits, over the next eight month period."
Playfair's Canadian Tungsten Deposits
Playfair owns four high-grade tungsten deposits, all in Canada. Two of the four high-grade deposits (Lened and Clea) have significant historical resource estimates that pre-date NI 43-101 but that have been delineated by well established mining companies. The Grey River and Risby deposits have NI 43-101 Compliant Resource Estimates.
In addition, to these four deposits, Playfair has the early stage but highly-prospective Granite Lake Mo-W exploration property. Playfair is very well positioned to benefit from the expanding global demand for tungsten having four high-grade deposits, all located within Canada.
NI 43-101 Compliant Resource Estimates
Historic Resource Estimates*
*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.
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
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