Playfair Mining drills 2.4 m of 1.1% WO3 at Grey River

2008-10-23 11:49 ET - News Release

Mr. Donald Moore reports

PLAYFAIR MINING LTD.: GREY RIVER TUNGSTEN DEPOSIT EXPANDED

Playfair Mining Ltd. is providing drilling results for the 2008 Grey River Tungsten deposit. Drilling has successfully defined a significant downplunge zone of tungsten mineralization extending the No. 10 vein deposit at depth and to the north. Drill hole 122 yields a highlight intercept of 1.13 per cent WO3 over 2.4 metres.

As reported in a previous news release, the main objective of the 2008 drill program was to test the downdip and northern strike extensions of the No. 10 vein tungsten deposit, particularly below the adit level. Analytical results from drill core samples show that No. 10 vein tungsten mineralization extends an estimated 250 metres downdip below the previously defined deposit (or about 160 metres vertically below the adit level). This newly identified deposit extension zone appears to have a 45-degree plunge (or rake) and is open to the north and at depth. The table details select results from the 10-hole drill program.

  SELECT 2008 DDH GREY RIVER RESULT HIGHLIGHTS

                From       To    Metres      WO3%

GR08-115       297.0    299.0       2.0      0.16
GR08-116       397.9    399.0       1.1      0.30
GR08-117       302.8    303.8       1.0      0.77
GR08-118       353.9    355.2       1.3      0.26
GR08-119       350.1    353.8       3.7        (i)
GR08-120           -        -         -       (ii)
GR08-121       395.8    398.4       2.6        (i)
GR08-122       294.7    297.1       2.4      1.13
               319.8    325.1       5.3      0.36
including      319.8    320.4       0.6      1.04
and            323.6    325.1       1.5      0.69
GR08-123       280.8    281.9       1.1      0.02
               312.4    312.8       0.4      0.11
               319.7    320.3       0.6      0.04
GR08-124       250.5    253.0       2.5      0.48

(i) Vein 10 with high-sulphide content, no 
wolframite.
(ii) Vein 10 was not encountered.
Intercept lengths are core lengths and not true 
widths.

Results from the 2008 drill program have greatly enhanced Playfair's understanding of the Grey River tungsten deposit. The company has moved forward significantly in its goal to increase the deposit's overall tungsten resource. The 2008 drill data will be added to the existing drill data set and be used to update the 2007 Wardrop Engineering inferred resource calculation (see resource estimate table).

     GREY RIVER NO. 10 VEIN 2007 NI 43-101-COMPLIANT RESOURCE ESTIMATE

                          Cut-off
                            grade          Grade     Pounds
Property Classification      %WO3  Tonnes   WO3%        WO3     MTU Company

Grey     Inferred resource    0.2 852,000   0.86 16,153,700 732,700 Wardrop
River                                                               2007

Donald Moore, Playfair's chairman and chief executive officer, states: "The 2008 drill campaign confirms the potential for additional tungsten resources below the adit and also to the north. Vein-type environments are often conducive to further resource expansion through development and underground drilling. Combined with the prospect of finalizing the metallurgical test work and milling circuit design, the Grey River deposit is another significant step closer to a production decision. Our view on tungsten remains bullish, with the metal's price remaining steady in the midst of current world economic turmoil, indicating that tungsten supply outside of China remains tight."

The 2008 drill program totals about 3,955 metres of NQ-diameter core drilling, with holes having been completed from three separate drill pads. The Playfair website has an illustration showing the locations of new drill hole pierce points on a deposit long-section map.

The collection of an estimated 5.6-tonne underground bulk metallurgical sample from the underground adit was recently completed. The bulk sample has been transported to the SGS Laboratory in Lakefield, Ont., for preprocessing, after which the blended ore material will be forwarded to Cornwall, England, for metallurgical testing.

Michael Moore, PGeo, is the qualified person who has reviewed the technical information contained in this news release, on behalf of Playfair.

Core samples were collected under the supervision of James Harris, PGeo. NQ-diameter core was descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. One-half of the core is preserved on site, in core boxes, for verification and future reference. The samples comprising the other half of the core were bagged, sealed and delivered to Eastern Analytical Ltd. in Springdale, Nfld., where they were dried, crushed and pulped. Samples were crushed to approximately minus-10 mesh and split using a riffle splitter to approximately 300 grams. The sample split was pulverized using a ring mill to approximately 98 per cent minus 150 mesh. The resulting pulp was then shipped to Eco Tech (Alex Stewart Geochemical) of Kamloops, B.C., an ISO 9001:2000-accredited laboratory, where a 0.2-gram split was subjected to a fusion digestion, then analyzed for tungsten by ICP-MS. All coarse rejects are currently stored at Eastern Analytical Ltd. facilities, and sample pulps are currently stored at the Eco Tech facilities. In addition to the normal quality controls/assurance controls of laboratory sample standards and blanks, Playfair employs the use of additional sample tungsten standards to ensure analytical integrity.