|January 27, 2010|
Seal Lake Copper Silver Acquisition
|Playfair Mining Ltd. is pleased to announce that it has acquired, by staking, a 100% interest in 673 claims covering 16,825 hectares in the Seal Lake area of Central Labrador. The property covers some 136 copper and copper-silver occurrences including 16 copper-silver showings and 9 copper silver prospects, all discovered mainly via prospecting in the 1950's. Almost all the showings and prospects occur within a consistent and laterally extensive stratigraphic interval -- the basal gray shale of the Upper Adeline Island Formation. The copper-silver enriched Adeline Island Formation is believed to form a canoe shape, with the rock unit outcropping over an estimated area measuring about 33km long by 4.4km wide. Playfair's Seal Lake Copper Silver Project covers the entire mapped extent of the favourable sedimentary unit and its probable subsurface continuation.|
The Seal Lake Basin has been explored intermittently for copper since 1950 by a number of senior companies, including Frobisher, Kenneco (a Kennecott subsidiary), Brinex, Beth-Canada (a subsidiary of Bethlehem Steel) and Noranda Exploration. Historical work was conducted at a time when copper prices were low and infrastructure was not as advanced as it is today. Now, with copper trading at much higher prices, the Trans-Labrador Highway 110 km to the south and the Churchill Falls Hydro dam 180 km to the southwest, the preliminary results obtained by this group of companies suggest that Seal Lake is a large, target-rich area with potentially economically significant mineralization. The project area is located 140km northwest of Goose Bay and importantly a hydro project access road is only 50km west of the western limit of the property.
Mineralization at Seal Lake has been recognized since the 1970's as a reduced facies sediment-hosted copper-silver mineralization of Kuperschiefer-type. It is most closely analogous to the White Pine deposit in Michigan, USA that is reported by the USGS to contain 688 million tonnes grading 1.2% copper and 40 gpt silver.
Europe's Kupferschiefer (medieval miners term for "copper shale") Basin is host to one of the biggest sediment-hosted copper districts of the world, second only to the Central African Copperbelt. The earliest traces of mining in the Kupferschiefer date back to prehistoric times with the main mineralized regions in Germany and Poland being mined systematically since medieval times. Several major mines are currently operating in Poland where the deposit at Lubin is reported by the USGS to contain 2,600 million tonnes containing 2% copper and 30 gpt silver. Table 2 below illustrates the impressive size and grade of such sedimentary deposits found around the world.
Don Moore, Playfair's Chairman stated, "Playfair is changing focus to concentrate in the near term on the new copper silver opportunity in the Seal Lake basin with its attention grabbing district scale. Kupferschiefer type mineralization often stretches over great distances --- in Europe, they run from southern Germany through Poland; which is currently Europe's largest copper and silver producer. Seal Lake is a major opportunity for Playfair. The mineralization and geology of this new project is similar to the Kupferschiefer type copper-silver deposits that are the focus of ongoing work at Hana Mining's Ghanzi property."
"Playfair continues to believe that there is a strong case for an upcoming global Tungsten shortage. With four high-grade Tungsten deposits Playfair remains well positioned to take advantage of the expected upcoming global Tungsten shortage and associated Tungsten price increase."
Previous work at Seal Lake has seen some very interesting results reported by major mining companies. Playfair believes this data is relevant and reliable, but notes that these historic data have not been verified. Chip sample results reported by Noranda in 1991 show that "Mineralization in the area of interest consists of disseminated chalcocite with lesser bornite and chalcopyrite in grey-green reduced shales. The Whiskey Lake No. 150 showing had the best results. This was 2.94% Cu and 45.85 g/t Ag over 11.0 m which includes 5.1% Cu and 72.67g/t Ag over 4.0m". Table 1 below shows select highlight copper-silver mineralization of the Seal Lake Copper-Silver Camp.
Table 1 Seal Lake Historical Channel or DDH Highlights
* true widths unknown
Table 2 Select Global Copper-Silver Sedimentary Deposits
(Kupferschiefer type or reduced environment) (After USGS Open File Report 03-107)
Playfair is currently completing a digital compilation of historical exploration and government geoscientific data for the region. On completion of this data compilation, Playfair will detail work for the
2010 season, which may include more detailed lake sediment-till sampling, prospecting, geological mapping, an airborne radiometric-magnetic geophysical survey and possibly diamond drill testing.
Michael Moore, PGeo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the company
Visit our website at www.playfairmining.com for more information
ON BEHALF OF THE BOARD
"D. Neil Briggs"
D. Neil Briggs
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Forward-Looking Statements: This Playfair Mining Ltd News Release may contain certain "forward-looking" statements and information relating to Playfair which are based on the beliefs of Playfair management, as well as assumptions made by and information currently available to Playfair management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.