Minco explains exploration difficulties

Minco, the Irish-focused zinc and gold explorer, have commented on the difficulties facing exploration companies.

Zinc prices are at historic lows while the gold price in euro has not recovered.

Despite having some of the most prospective ground for zinc anywhere, Minco said it's found it increasingly difficult to attract and to hold joint venture partners.

Recently, companies who joint-ventured with them (such as Rio Algom, Anglo American, BHP- Billiton and Noranda) have withdrawn as prices have declined.

During 2002 Noranda, their final active partner, ceased all their exploration operations in Ireland primarily for budgetary reasons.

The company has said that although the Government assisted the industry by agreeing to a moratorium on committed expenditure requirements for a limited period, hard decisions will have to be taken on their holdings in the coming months as they come up for renewal.

A limited prospecting programme is to be carried out in Avoca and Kildare in the coming months on the new gold licences and a number of projects have been evaluated all of which will take the company into new countries.

Minco have said a high potential precious metal venture is at an advanced stage of negotiation.