Anglesey Mining PLC Parys Mountain Scoping Study Update

 
TIDMAYM 
 
12 May 2017        LSE:AYM 
 
Parys Mountain Scoping Study Update 
 
Anglesey Mining plc ("Anglesey" or the "Company") reports that work on Scoping 
Study on the Parys Mountain copper-lead-zinc project in North Wales is 
continuing.  The study is being undertaken by Micon International Limited and 
Fairport Engineering, in collaboration with company personnel, based on the 
resource estimate calculated by Micon in 2012. 
 
The 2012 JORC Code compliant resource estimate reported a resource of 2.1 
million tonnes at 6.9% combined base metals in the indicated category and 4.1 
million tonnes at 5.0% combined base metals in the inferred category. 
 
The initial approach adopted for the Scoping Study was a plan to mine these 
resources at 500 tonnes per day, or 165,000 tonnes per annum, commencing with 
development of the mineral deposits closest to surface.  The Company had chosen 
this throughput rate as it was believed that the low capital cost associated 
with this approach would provide the most beneficial outcome.  Given the level 
of indicated resources defined by Micon in 2012, this would result in a mine 
life of around 16 years, with mining of the indicated resources only and none 
of the inferred resources. 
 
The Company has reviewed the initial outcome of the study, based on a daily 
processing plant input of 500 tonnes per day of ore, and concluded that an 
accelerated development of the indicated resources over a shorter initial mine 
life should be economically more attractive. 
 
Fairport has considered some processing alternatives, specifically the 
introduction of dense media separation, that would increase the effective daily 
production rate by about 40% with only a limited increase in capital.  This 
would result in a shortened mine life based on the existing indicated resources 
and should generate an enhanced financial outcome. 
 
In addition, on reviewing the current indicative levels of the capital cost of 
mill equipment, including readily available used processing plant, it was felt 
that construction of a larger processing plant with a higher throughput rate 
could be justified. The feasibility study completed in 1991 was based on a 
throughput rate of 1,000 tonnes per day, or 350,000 tonnes per year. 
 
Obviously, a higher initial daily throughput rate would require additional mine 
development, a higher capital cost and result in a shortened mine life based 
only on the existing 2.1 million tonnes of indicated resources, but it should 
generate an enhanced financial outcome. 
 
However, recognising the significant inferred resources of 4.1 million tonnes, 
being almost twice the current indicated resources, it would be expected that 
during the operation of the mine definition and exploration drilling would be 
carried out from underground locations that should be expected to bring much of 
the current inferred resources into the indicated category, and that would then 
extend the mine life significantly. 
 
Based on an initial review of the preliminary results of the draft Scoping 
Study, Anglesey has asked both Micon and Fairport to consider alternative 
production and throughput scenarios, at various levels between 500 and 1,000 
tonnes per day, and expects to receive modified mine production schedules and 
alternative capital cost estimates in the near future.  The inputs will then be 
incorporated into updated financial models, with a view to having optimized 
development scenarios available for consideration before the end of June 2017. 
 
About Anglesey Mining plc 
 
Anglesey is carrying out development and exploration work at its 100% owned 
Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported 
resource of 2.1 million tonnes at 6.9% combined base metals in the indicated 
category and 4.1 million tonnes at 5.0% combined base metals in the inferred 
category. 
 
Anglesey holds a 6% interest and management rights to the Grangesberg Iron 
project in Sweden, together with a right of first refusal to increase its 
interest by a further 51%. Anglesey also holds 11.2% of Labrador Iron Mines 
Holdings Limited which has direct shipping iron ore deposits in Labrador and 
Quebec 
 
For further information, please contact: 
 
Bill Hooley, Chief Executive [phone] 
 
Danesh Varma, Finance Director [phone] 
 
Elliot Hance, Beaufort Securities [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

May 12, 2017 02:00 ET (06:00 GMT)