Primary Metals Announces NI 43-101 Resource Estimates for Panasqueira Tungsten Mine
Friday June 23, 9:30 am ET
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VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 23, 2006) - Primary Metals Inc. (TSX VENTURE:PMI - News; "Primary" or the "Company") is pleased to announce the completion of a resource estimate for its operating Panasqueira tungsten mine in Portugal. The estimate includes only material that has been calculated in accordance with guidelines under National Instrument 43-101. Development work continues and additional known mineralization identified from recent exploration and drilling has not been included.
The estimate resulted in total mineral resources of 4,649,000 tonnes containing 1,180,408 MTU's of tungsten trioxide. (One MTU equals 1 metric tonne unit or 10 kilograms of WO3 - tungsten trioxide. The mean quoted European price for tungsten is currently US$255 per MTU of WO3) The total included Proven and Probable Reserves of 1,391,000 tonnes at a grade of 0.233% WO3 (containing 324,408 MTU's of tungsten trioxide) and additional Indicated Resources of 3,258,000 tonnes at a grade of 0.263% WO3 (containing a further 856,000 MTU's of tungsten trioxide). In addition, there were a further 1,610,000 tonnes at a grade of 0.224% WO3 (containing 360,000 MTU's of tungsten trioxide) in the Inferred Resource category.
"At current mining rates, these reserves and indicated resources will be sufficient for the next eight years. We are particularly encouraged that these reserves and indicated resources are located above our existing Levels 2 and 3 and may be readily accessed by lateral mine development. There appears to be no immediate need for early development of the new Level 4 in the mine in order to access inferred resources. Recent exploration and development work has also been very encouraging and indicates the continuation of further mineralization in our mine Level 4, and also in the Panasqueira Deep area, accessible from Level 2, which should add to future resource estimates," commented Lewis Black, Chairman of the Company. "Tests are also underway to examine the possibility of re-treatment of some of our historic tailings material which, if successful, would further add to the long term potential of our operations."
The estimates are based on data available on February 1, 2006 and are considered compliant with National Instrument 43-101. They were prepared by David Gunning, P. Eng. and George Cavey, P. Geo., of OreQuest Consultants Ltd. in Vancouver, British Columbia. OreQuest is an independent consulting firm with over 20 years of experience specializing in minerals exploration, production and evaluation and with extensive experience in all aspects of National Instrument 43-101.
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RESERVE AND RESOURCE Contained
CLASSIFICATION Mine Level Tonnes % WO3 WO3 (MTU)
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RESERVES
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Proven Reserves L2 80,659 0.239 19,248
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L3 458,279 0.239 109,522
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TOTAL PROVEN RESERVES 538,938 0.239 128,770
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Probable Reserves L3 852,581 0.229 195,241
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TOTAL PROVEN AND
PROBABLE RESERVES 1,391,519 0.233 324,011
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RESOURCES
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Indicated Resources L2 D15-D1 1,217,615 0.241 293,710
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L3 D15-D1 1,155,554 0.283 327,256
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Pan Deep 874,624 0.267 233,260
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L4 10,478 0.191 2,003
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TOTAL
INDICATED RESOURCES 3,258,000 0.263 856,000
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Inferred Resources L2 D15-D1 275,578 0.307 84,504
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Pan Deep 159,728 0.181 28,918
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L4 1,173,186 0.210 246,262
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TOTAL
INFERRED RESOURCES 1,610,000 0.224 360,000
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Full details of the resource calculations and other aspects of the Panasqueira Tungsten Mine will be presented in a technical report compliant with National Instrument 43-101 to be filed and posted on SEDAR within 45 days. The parameters and methods used for the estimates are as outlined in a previous technical report by OreQuest Consultants Ltd. on the Panasqueira mine filed on www.sedar.com on February 26, 2003 and compliant with National Instrument 43-101.
About Primary Metals
Primary Metals Inc. is a TSX Venture listed company, which owns 100% interest in the Panasqueira tungsten mine in Portugal, currently producing wolframite concentrates containing some 120,000 MTU's of tungsten trioxide per annum. Mining has been carried out at Panasqueira for over 100 years. Significant increases in tungsten prices from US$85 to as high as US$290 per MTU in the past year, along with current improved mining activities, have recently yielded profitable results and the Company has reported earnings of $0.56 per share for the first nine months of fiscal 2006. The Company's March 31 year-end results will be reported before the end of July 2006.
On Behalf of the Board of Directors,
James Robertson, P. Eng., Director
David Gunning, P. Eng. and George Cavey, P. Geo. are Independent Qualified Persons for Primary Metals Inc. and have prepared the estimates contained in this news release. James Robertson, P. Eng. is a Qualified Person for Primary Metals Inc. and has reviewed and approved the content of this news release.
The Panasqueira mine is in full production constantly shipping concentrates of tungsten trioxide to its customers. Specific Quality Control/Quality Assurance ("QC/QA") procedures such as those utilized in base or precious metal mines are not in place at the mine. Instead Panasqueira assesses the performance of the assaying facility and the scales used to measure weights by comparing the mine assays with the check assays completed by their customers. To date the customer assays and company assays have been similar which forms a reliable test of the production procedures related to QC/QA that are in place at the mine.
Mineral resources that are not mineral reserves do not have demonstrated economic viability based on available information.
This News Release contains forward-looking statements respecting the company's expectations as to the results of planned work programs, potential mineralization, resources, reserves and mine production levels. Such statements are based on certain assumptions, including continued demand for tungsten, availability of capital, equipment and personnel to carry out and complete the planned work programs and accuracy within a reasonable range of reported exploration and development results, and involve various risks and uncertainties, including global economic factors, future commodity prices, lack of availability of equipment or personnel, and results of exploration and development. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Other important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time-to-time with regulatory authorities and on www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Contact:
James Robertson, P. Eng.
Primary Metals Inc.
Director
(604) 669-8988
(604) 669-2744 (FAX)
info@primarymetals.ca
www.primarymetals.ca
Jamie Mathers
Ascenta Capital Partners Inc.
Investor Relations
(604) 628-5800 extension 36 or Toll Free: 1-866-684-4209
info@ascentacapital.com
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Source: Primary Metals Inc. |
