Minco Exploration PLC Publishes Annual Report and Accounts 2023

01 July 2024 | Minco Exploration PLC (“Minco Exploration”, “Minco” or the “Company”) announces the publication of its Annual Report and Accounts for the year ended 31 December 2023.

Click here to download Minco’s Annual Report and Accounts 2023. (PDF)

 

Chairman John F. Kearney, Letter to Shareholders

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The year 2023 saw many challenges, including continued volatility within the global commodity industry. Renewed conflict in Israel and the Middle East, together with the ongoing war in Ukraine, has continued to divide the people of the world at a time when we should be coming together to overcome one of our greatest challenges – the energy transition and climate change. It is hoped that these humanitarian tragedies will soon end, and geopolitical stability will return.

The economies in most regions of the world have been consumed with monetary policy. The European Central Bank (ECB) raised its benchmark interest rates by 4.00 percentage points between July 2022 and December 2023, in an effort to combat high inflation. Higher interest rates dampened demand for metals. The price of zinc continued its downtrend that began in 2022 and continued throughout 2023 and into 2024, resulting from a slower than expected post-COVID rebound of China’s economy and lower than forecasted mineral demand from the rest of the world.

Nonetheless, the worst may be over. There are signs of renewed economic growth in many parts of the world. It is encouraging to see that the downtrend in zinc prices reversed course in Q2 2024, mainly due to increased stimulus from China, and carbon reduction initiatives around the globe, leading to renewed demand for metals and minerals, including zinc. On 6 June 2024, the ECB cut interest rates for the first time in almost five years, to 3.75%.

Minco’s purpose is to discover and develop a world-class mineral deposit and its corporate strategy is focused on exploring for zinc in Ireland, both on its own behalf and in joint venture with Boliden Tara Mines. The licences held by Minco are considered prospective exploration areas for “Irish Type” carbonate-hosted zinc-lead mineralization and quality target areas have been identified through fieldwork, reinterpretation of historical exploration data and application of advanced geological concepts.

In 2023 we completed a strategic review of our properties that resulted in focusing our efforts differently than envisioned in the previous years, culminating in the successful application for three prospecting licences in the Lisheen/Rathdowney trend covering the Rapla project and the difficult decision to drop the Moate property. Minco believes the Rapla project, located 6km and 15km to the northeast of the Galmoy and Lisheen ore deposits, respectively, is a strategically located, advanced exploration project with excellent exploration potential.  For details of all exploration activities, please refer to the Review of Operations section of this Annual Report.

The major event in the Irish minerals industry was the suspension of production activity at the Tara Mine in mid-2023. The reasons given by Boliden for the decision to suspend operations were the decline in the price of zinc earlier in 2023, the high cost of energy in Ireland, inflation and operational factors. The cessation of operations at the Tara Mine had the knock-on impact of curtailing exploration activity on Minco’s joint venture licences where Boliden is the operator. Happily, we can report that the Tara Mine is preparing to reopen under proposed “new ways of working” that Boliden hopes will deliver a new production target of 1.8 million tonnes per year.

 

European Union’s Critical Raw Materials Act

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The EU’s Critical Raw Materials Act (CRMA) received final approval on the 18th of March 2024, was formally signed by the co-legislators on the 11th of April 2024, and has immediate application in all Member States.

The Institute of Geologists of Ireland (IGI), the chartering body for geoscientists in Ireland, has outlined how Ireland can play its part in mining the metals required to secure decarbonization and deal with the global climate crisis under the new legislation to secure a more diverse and sustainable supply of critical raw materials in a new Mining & Minerals Factsheet – MORE DIVERSE, SUSTAINABLE SUPPLY OF CRITICAL RAW MATERIALS IN EUROPE, published  23 May 2024, extracts from which are included below, with acknowledgement and thanks to IGI.

“The EU aims to be the world’s first climate neutral continent by 2050. Achieving the EU’s Green-Deal vision depends on securing a reliable and increasing supply of raw materials crucial to building technologies for the world’s green energy and digital transitions.

The EU Commission has identified 34 Critical Raw Materials (CRM), including 17 Strategic Raw Materials (SRM) of high economic importance for the EU – but at a high risk of supply disruption and crucial to the development of technologies powering the world’s green energy and digital transitions. Critical because clean and renewable energy and digital technology will not happen without an ample and reliable supply of these metals for items such as smart phones, LED lighting, solar panels, and EV batteries.

Some are strategic because of Europe’s over dependency on just a handful of nation states in a world where geopolitical risk is increasing. Zinc has not been classed as a Critical Raw Material by the EU Commission. However, it is still an important element that has been mined in Ireland since the 1960s. Several other Critical Raw Materials, such as germanium and gallium, are primarily produced from zinc ores. Potentially economic quantities of germanium have been identified in Irish ores and both may also be in existing and closed mines, as well as legacy mine waste facilities. [Minco notes that zinc has been classed as a critical mineral by both Canada and United States.]

Insufficient amounts of these Critical and Strategic Raw Materials are available from recycling. Presently the EU relies on imports which have been mined and processed elsewhere. For instance, China provides 100% of the EU’s Heavy Rare Earth Elements (HREE) requirements, which are essential components for wind turbines. Other important suppliers include Türkiye (99% of the EU’s supply of boron, used in fertilisers), Chile (79% of lithium, a key component in batteries), and Brazil (92% of niobium, used in high strength steel and alloys).

Demand for CRMs and SRMs will grow significantly to build the technologies required for climate action and the EU’s digital transformation goals, for example lithium demand is projected to increase twelve-fold by 2030 due to the adoption of electric vehicles. As the world transitions towards clean energy, everyone understands the changes required at a personal level to bring about this shift. What has been less apparent, is the essential role of mineral exploration, mining, and the work of geoscientists in securing the critical elements needed to power the technologies in this new reality.

The CRMA establishes various targets, including that not more than 40% of the EU’s annual consumption of each strategic raw material at any relevant stage of processing comes from a single third country.

Ireland’s role & opportunity

To achieve these targets Members States are required to identify strategic projects within the EU, and other countries, for streamlined permitting, with defined timeframes for decisions and established mechanisms to improve access to finance. Member States are also required to implement national exploration programmes to increase knowledge of European mineral resources, including those present in extractive waste, such as lead/zinc mine tailings.

Creating both obligations and opportunities for Ireland, the CRMA will require that Ireland plays its part in mining the metals required to secure decarbonisation and deal with the global climate crisis. This includes:

Opening new mines

To achieve the extraction goals of the CRMA more mines will need to open within the EU. This could see 10 to 15 new mines opened across the Union (depending on size).

New deposits exploration 

Ireland had a mining “boom” when three zinc-lead mines were in production (Lisheen, Galmoy, and Tara Mines). During its peak, Ireland supplied almost 40% of Europe’s zinc requirements. Tara Mines is a world class deposit, the largest mine in Europe and has been a significant supplier of zinc globally for over 40 years. Ireland continues to have huge potential for zinc deposits (used in utility scale zinc-air batteries and especially critical for offshore wind turbines) which may contain CRM.

Historically, Ireland has been a producer of copper from several mines. There is also exploration potential for new lithium, baryte, antimony and arsenic deposits. Without exploration, the true extent of Ireland’s CRM will not be known.

To achieve the CRMA targets, EU Member States will need to do more and quicker.

Not many new mines are required to meet the targets, but mine permitting is a process that takes years. This is after a decade spent identifying a mineable deposit. If the targets are to be reached by 2030, current projects across the EU need to be accelerated.

The CRMA calls for streamlined permitting but this will be challenging as, on the company side the technical and environmental studies for a successful project cannot be rushed, and on the regulator side the sheer volume of assessments slows the process. Both operators and regulators need the support and resources to manage responsible mining.

However, these initiatives are all aimed at the mining stage when a deposit is already known and has had extensive investigation.

While there are some CRM projects at or close to this stage in the EU, it is unlikely that all of them will come into production and more discoveries will need to be made. That stage is exploration (or prospecting). This is the highest risk step within the mining timeline and the one currently facing the most challenges worldwide; financing and budgets have collapsed, permits are being delayed, while the administrative burden has risen sharply, all during a time of increasing costs and inflation.

Further collaboration & communication with stakeholders

One of the major stumbling blocks for all stages of exploration, extraction, and processing, are objections and appeals of permits. These can add years to a project, if not complete cancellation. While due process is essential, opposition still arises from incomplete understanding of the environmental standards applicable to modern mining practices or an unwillingness to locate mines in certain localities or communities. Further collaboration and communication with all stakeholders, including local authorities, will be essential for understanding and acceptance of modern mining.”

 

Outlook and Thanks

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2024 will be a busy year for Minco as we look to fast-track exploration at Rapla, while continuing blue-sky potential exploration initiatives at our other projects.  Minco has prospective properties that include exciting geological targets and the knowledge and expertise to advance them to the next stage. We remain optimistic about the long-term fundamentals for zinc and other “critical” minerals which are essential to the technologies needed to accomplish a net-zero future.

Minco remains focused on operating ethically in an environmentally responsible manner and creating sustainable long-term value for all our stakeholders consistent with the Government’s Policy Statement on Mineral Exploration and Mining. Minco’s sustainability strategy is supported by its environmental, social and governance (ESG) commitments which seek to enhance responsible exploration and development practices at all its projects.

In closing, I express my gratitude to all of our stakeholders for their ongoing support. This support is fundamental to our future success. Minco will remain focused on continuing to explore for minerals in Ireland and generating long-term value for shareholders.

 

 

John F.  Kearney

Chairman of the Board

27 June 2024

 

 

Review of Operations

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Minco Exploration PLC (“Minco Exploration”, “Minco”, or the “Company”) continues to focus its exploration efforts on its Prospecting Licences (“PLs”) in Ireland. These are held either directly or in joint venture with Boliden Tara Mines DAC (“Boliden”).

The licences held by Minco are considered prospective exploration areas for “Irish Type” carbonate hosted zinc-lead mineralization and quality target areas have been identified through field work, reinterpretation of historical exploration data and application of advanced geological concepts.

 

Rapla Project, County Laois

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As flagged in our Interim Report dated 23 September 2023, Minco adopted a dual focussed business model that envisages maintaining an interest in the blue-sky potential of our exploration portfolio and also identifying more advanced project opportunities which could be fast-tracked through to preliminary economic assessment. We believe that our new Rapla Project, along strike from Lisheen and Galmoy, offers such an opportunity.

Minco applied for Prospecting Licences covering the Rapla mineral prospect and adjacent ground in County Laois in mid-2023. The application was successful and three licences (75.3km²) were issued to Minco Ireland Limited on 29 April 2024. They remain valid for a 6-year term, subject to the expenditure of €200,000 during the first 2 years of the term, with a minimum of €10,000 in each of the PL’s. Title can be maintained through the subsequent 4-year period by the expenditure of a further €500,000 to fund a Preliminary Economic Assessment of the Project.

The Rapla Prospect is located 6km and 15km to the north-east of the Galmoy and Lisheen ore deposits, respectively.

The Prospect was discovered by Arcon Exploration Plc in the early 1990’s. The Property was explored by a series of operators, including Conroy Petroleum and Natural Resources (1987 – 1993); Arcon Exploration Plc (1994 – 2005), Lundin Mining Exploration Ltd (2005 – 2013), Vedanta Exploration Ireland Ltd (2014 – 2020) and, most recently, by Zinc Mines of Ireland (“ZMI”) (2020 – 2023).

The objective of the historic exploration was to discover a Lisheen look-alike. As a result, the historic drilling is widely spaced with a nominal grid of 400 by 400m, in a range of 170 to 700m, which is very wide for this style of mineralization.

The Rapla mineralization is developed within an ENE-trending zone over 3,600m of strike at / near the contact between the Waulsortian and the underlying Argillaceous Bioclastic Limestone (ABL) at a depth of 550 – 650m. The mineralization is controlled by the Rapla Fault – an en echelon / relay style extensional fault analogous to the ore controlling structures at Lisheen and Galmoy.

 

Two styles of mineralization are present. One is massive sulphides which commonly occur proximal to the base of the Reef and is dominated by pyrite with sub-ordinate sphalerite and galena. The second is disseminated and stringer style, which tends to be more sphalerite / galena rich and pyrite poor.

Following a review of the historic drilling results we established that the best intercept – DDH 3312-71: 7.4m @ 14.59% Zn+Pb – is open along strike for approximately 600m to the south-west and to the east. It is also open towards the controlling Rapla Fault. Follow-up of this intercept will be a priority.

This Project will be a major focus of our exploration programmes in the coming year.

 

Exploration at Milltown Project (PL 3788), County Clare

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Mining of calcite was conducted at the Milltown site in the 19^th century, via an open-pit reputed to be in the order of 35m (120 ft) deep.  Base-metal mineralization was discovered in mid-1990’s at a depth of about 70m beneath the coarsely crystalline calcite.  It varies in thickness from 1 to 23m and is approximately 150m by 150m in horizontal extent and is both stratabound and stratiform with a best intercept of 20.4 m @ 12.03% Zn + Pb at a depth of 38.3 m in drill hole 3788/19.

Minco has compiled all of the historic exploration data. The legacy airborne geophysical data has been reprocessed and reinterpreted. This has identified an untested anomaly immediately to the east of Milltown.

It is planned to follow-up on this by completing a ground geophysical survey to validate the anomaly in preparation of a drill test.

 

Joint Venture with Boliden on Slieve Dart Licences, County Galway

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Minco, through its wholly-owned subsidiary Minco Ireland Limited, is participating in a joint venture agreement with Boliden on eight prospecting licences in the Slieve Dart area of County Galway.

During 2023, Minco incurred expenditures of €21,637 with respect to these licences (cumulative expenditure to December 2023 – €456,656). Boliden elected not to contribute to the programme expenditures, opting to take dilution.  As result, once accounts are finalized it is anticipated that Minco’s interest will have increased to approximately 55%, with Boliden retaining the right to purchase or toll process all ore that may be produced from the licence areas.

Boliden holds title to a further five licences contiguous to the above.  Minco has contributed 50% of the exploration costs on these licences with the intention to apply for Ministerial approval to incorporate them into the joint venture.

Several local pods of mineralization, hosted in Waulsortian Reef limestones, discovered in the 1980’s, are spatially associated with the Slieve Dart Fault along the north-western border of the licence Block. The successes at Lisheen and Galmoy then diverted attention away from this area and it was not until the early 2000’s that interest was renewed.

The concept driving the current phase of exploration is based on our interpretation that a regionally extensive, and basement penetrative, fault system extends through the area between Slieve Dart and Mount Mary but is concealed beneath a veneer of young cover rocks.  The Slieve Dart Fault is an exposed part of that system. It is considered possible that the hidden fault system could provide a pathway for the flow of mineralizing fluids resulting in larger, and higher grade, concentrations of mineralization compared to that known along the Slieve Dart Fault.

A seismic traverse across the prospective zone was completed in 2019. This confirmed the presence of the hypothesized structural system and identified six structural-stratigraphic targets warranting drill test.

The first of those targets, along the strike projection of the Mount Mary Fault, was drill tested by 2885-22-01, in 2022. The drill test confirmed the interpretation and established the presence of Waulsortian Reef limestone at a depth of 293.7 – 385 m and a significant fault zone at 115 – 150 m. No mineralization or alteration was intersected.

A second drill test, 1362-01, was completed this year to the north of Clonbern. Early interpretation of the drill cores suggest the presence of a large structural system but without significant development of the prospective host reef limestones. We are awaiting results to determine if a lithogeochemical halo, indicative of a proximal mineralized system, might be present.

It is now planned to incorporate these data into refining our geological model of the area to help define centres, and the limit, of reef limestone development and their interaction with the interpreted structural trends.

As noted earlier, six prospective drill targets are identified by the seismic traverse. These are representative for circa 90 km of combined along strike potential. It would be highly serendipitous if the seismic traverse had been completed over a hidden orebody, or even a mineralized footprint. Therefore, in addition to direct drilling validation of the seismic interpretation, effort is being directed to developing a low-cost approach to prioritizing sections along the structural trends for more detailed investigation.

During 2023, a detailed, multi-element soil geochemical survey was completed along strike from the 2022 drilling towards the Mount Mary Inlier. This was designed to validate a geochemical trend identified by a Boliden review of historic data. Early interpretation of our sampling has not replicated the Boliden result. However, given the importance of the objective, further processing of the data is planned in the coming months.

 

Joint Venture with Boliden on PL 1440R (Tatestown), County Meath

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Minco, through its wholly-owned subsidiary Westland Exploration Limited, continues to maintain a 20% interest in PL 1440R (Tatestown). This licence is being explored under a joint venture with Boliden (80%). PL 1440R is located within the mineralized envelope that surrounds Boliden’s immediately adjacent Tara Mine orebody and hosts part of the Tatestown–Scallanstown zinc-lead deposit. A historical resource of 2.4 million tonnes averaging 7.31% zinc plus lead has been estimated for the Tatestown–Scallanstown deposit.

The temporary cessation of production activity at the Tara Mine curtailed exploration efforts during 2023. However, this has provided an opportunity to re-assess the exploration targeting opportunities within the Licence reaffirming the prospectivity of the northern portion of the licences where four, widely spaced, intercepts of pervasive low-grade zinc–lead mineralization were intersected in historic drilling.

It is anticipated that with the restart of production there will be a renewed focus on continuing exploration of these targets during the coming year.

 

Joint Venture with Boliden on PL 3373 (Kells), County Meath

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Minco, through its wholly-owned subsidiary Minco Ireland Limited, has now earned a 50% interest in PL 3373 which is held in a joint venture with Boliden, who act as Operator. The licence, contiguous to the west of PL 1440R, is located approximately 10 km northwest of the Tara Mine and is bounded to the south by ground currently being explored by Boliden.

Under terms of this agreement, Minco can earn a 75% interest through expenditure of €250,000 in staged programmes. At 31 December 2023 Minco had incurred cumulative expenditure of €189,538. Boliden has the right of off-take to purchase or toll process all ore that may be produced from the licence area.

As at Tatestown, exploration was curtailed during 2023. It is anticipated however that exploration will resume during the coming year and will include drill testing of targets in the western part of the Licence.

 

Moate

Minco previously held two Prospecting Licences, Licence 1228 and Licence 1229, at Moate in County Westmeath. Following completion of the strategic review of properties that resulted in focusing our efforts differently, these licences were surrendered in 2023.

 

 

 

ABOUT MINCO EXPLORATION PLC

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Minco Exploration PLC is focused on mineral exploration in Ireland, internationally renowned as a major zinc-lead mining country. Minco has interests in Prospecting Licences (PLs) strategically located in the foremost geologically prospective areas of Ireland. Minco Exploration has a uniquely experienced leadership team, which has extensive knowledge of the Irish mineral landscape.

Minco’s licences are held in areas considered prospective exploration areas for “Irish Type” carbonate hosted zinc-lead mineralization. These licences are operated by Minco or in joint venture with Boliden Tara Mines. Minco is participating (20%) in a joint venture with Boliden (80%) on Licence 1440R (Tatestown), which lies immediately adjacent to Boliden’s large 130 million tonnes Tara zinc-lead mine at Navan. Minco is also participating in a joint venture with Boliden on PL 3373 (Kells), contiguous to the west of PL 1440R, where Minco can earn up to a 75% interest; and in a joint venture with Boliden on ten PLs in County Galway (Slieve Dart) where Minco can earn up to a 50% interest. Minco also holds a 100% interest in two Licences at Moate, County Westmeath and another Licence covering the Milltown mineral prospect in County Clare.

Additional information about the Company is available at www.MincoExploration.com.

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Enquiries:

Minco Exploration PLC

John Kearney, Chairman +1 (416) 362 6686

Peter McParland, Chief Executive +353 (0) 4690 73709

 www.MincoExploration.com

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Click here to download Minco’s Annual Report and Accounts 2023. (PDF)