Record Monthly Production and Trading Update (2723E)

TIDMANGM

RNS Number : 2723E

Angel Mining PLC

29 May 2012

ANGEL MINING PLC

("Angel Mining" or the "Company")

   AIM:   ANGM 

RECORD MONTHLY PRODUCTION AND TRADING UPDATE

The board of Angel Mining plc is pleased to announce a new monthly production record as the total amount of dore poured in May was 40.6kg (1,305oz). Due to our current gold price hedge of $1,650/oz this equates to $2.15 million of sale proceeds. The total comprised of gold dore pours of 19.3kg on 6(th) May, 13.135kg on 20(th) May and 8.112kg on 28(th) May. The new monthly record provides further confidence to the board's belief that the mine will soon attain it's intended commercial level of production, i.e. in excess of 1,500 ounces of saleable gold per month. Future gold pours are planned on a three weekly cycle, although this may vary, from time to time, to ensure the most efficient use of elution circuit and furnace.

Nalanuq

During May the Nalunaq mine has constructed a substantial new tailings disposal area, which should last for the remaining life of mine. A few days of production were adversely affected by the work to close off the old tailings disposal area and to switch the pipework and pumps to the new facility.

An application has been made to the Bureau of Minerals and Petroleum for a permit to mine parts of the high grade pillars, based upon a study undertaken by Golders Associates. Work has commenced in the Mountain Block, where exceptionally high grade ore samples have been found. The deposits in this area are found in relatively small pockets and some limited underground diamond core drilling is planned to determine the extent of these attractive deposits. The management team are confident that the grade of ore, that is now available to them, should enable them to consistently hit their commercial production target of in excess of 1,500 ounces each month, subject to reasonable plant availability.

A fault was discovered, running just above the gold bearing quartz, in the South Block development and as a result the grade of ore has deteriorated recently. The faulting appears to have narrowed the target area and development in this area has been suspended so that development efforts can be concentrated in the Mountain Block where drilling has shown there to be significantly higher grade ore available. Recent samples have indicated a gold content in excess of 2,000 gpt but the extent of this particular deposit is not yet known. Further consideration will be given to the South Block geology and the Company is considering whether to drill some exploration bore holes so as to learn more about the recently discovered fault, which may have only marginally displaced the targeted gold resource.

Black Angel

A full time project team has been formed to progress the Black Angel project comprising a project manager, data management and IT manager, a procurement manager and a part time technical consultant. The financial model and feasibility study are being thoroughly tested to optimise cash generation, while keeping the capital expenditure budget as low as possible.

Nicholas Hall, CEO, commented: "The team has done well to recover from the generator failure in March and plans are in hand to transfer another large generator from Black Angel to improve the standby facilities. The Board continues to explore financing options for the Black Angel project and hopes to be able to provide further updates later this summer."

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/Shabnam Bashir                  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 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 two to five 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 reserves 
                                   (kt)     (%)   (%)   (g/t)   (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 
====================  ==========  =======  ----  ----  ------  ----------------- 
 

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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