Angel Mining PLC Production Update (2418T)

TIDMANGM

RNS Number : 2418T

Angel Mining PLC

11 December 2012

11 December 2012

ANGEL MINING PLC

("Angel Mining" or the "Company")

   AIM:   ANGM 

PRODUCTION UPDATE

The Board of Angel Mining plc, the Greenland-focused mining and exploration company, is pleased to announce that, its Nalunaq gold mine completed a gold doré pour of 19.254 kg (c.557oz gold) on 30 November 2012 and a further 20.77 kg (c.601oz gold) on 05 December 2012.

The gold pour on 30 November was less than anticipated at the time and it was discovered that gold was plating on the cathodes of the electrolysis unit. On site treatment released a further 20.77 kg and it is still estimated that there is approximately 1 kg of gold on each of the six cathodes. These are now being sent to the Company's refiner in Switzerland to recover this remaining gold. The cathodes have been replaced with new ones.

Nicholas Hall, CEO, commented: "This boost to our production is very encouraging. We continue to focus on generating consistent output at Nalunaq, which will generate increased cashflow - underpinning the Company's growth potential."

Enquiries:

 
 Angel Mining plc 
  Nicholas Hall, Chief Executive Officer          07931 709 053 
  Kevin McNair, Chief Financial Officer           07900 690 908 
 Fox-Davies Capital (Nominated Adviser 
  & Broker) 
  Daniel Fox-Davies 
  Simon Leathers                                       0203 463 5010 
 Bishopsgate Communications Limited 
  Nick Rome                                       0207 562 3350 
 

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27 May 2011 following final completion of the processing plant and is targeting optimal production by Q1 2013 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt. The current mining plan anticipates a mine life of one to two years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining currently operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region in the future.

Black Angel

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland. The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

 
        Summary of Black Angel Mineral Resources (JORC) as of 31 December 
                                       2007 
================================================================================ 
                     Category      Tonnage    Zinc    Lead   Silver    Mineable 
                                     (kt)      (%)     (%)    (g/t)    reserves 
                                                                         (kt) 
================  =============  ==========  ======  =====  =======  =========== 
 Angel Zone        Indicated            791    13.0    4.5     25.0          218 
================  =============  ==========  ======  =====  =======  =========== 
 Cover Zone        Indicated            522     8.3    2.4     18.0          231 
================  =============  ==========  ======  =====  =======  =========== 
 Other zones 
  within the 
  Black Angel 
  mine             Indicated            697    10.4    3.3     13.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 South Lakes 
  Glacier          Indicated          1,726     6.9    2.5     14.5            - 
================  =============  ==========  ======  =====  =======  =========== 
 Ark               Inferred             492     4.7    2.2     20.4            - 
================  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Indicated            196     9.0    3.4     31.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Inferred               1     4.5    1.9      9.0            - 
================  =============  ==========  ======  =====  =======  =========== 
 Total                                4,425                                  449 
===============================  ==========  ======  =====  =======  =========== 
 Source: Wardell Armstrong International Ltd. 
================================================================================ 
 

The project consists of three phases:

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralization at Deep Ice, Nunngarut and a number of other exploration targets within the license area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement. Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy.

More information on the Company is available on the website, please click here: http://www.angelmining.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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