2 July 2014 LSE:AYM
Anglesey Mining plc (“Anglesey”) which is concentrating its activities in the base and bulk minerals sectors is pleased to provide the following updates on its major areas of minerals interest in three different countries.
Micon International Limited is now close to completing a detailed review of the mineral potential of the entire Parys Mountain property in North Wales. This review will cover both those resources on which Micon has previously provided JORC compliant indicated and inferred resource estimates as well as studying a number of other deposits and locations within the property that were not included in those estimates.
The report, which is due within a month, will enable Anglesey to better plan its development strategy for Parys Mountain to ensure that the sizing of future operations is commensurate with the entire mineral potential and will not require expensive additions and compromises once operations begin.
The board continues to review the status of base metals markets and in importantly the zinc market to ensure that the commencement of production at Parys Mountain coincides as closely as possible with the expected resurgence in demand for base metals concentrates particularly in the European environment. There are now positive signs that the long expected future shortfall in zinc concentrate supply related to major mine planned closures is coming closer to fruition.
Anglesey completed its contractual arrangements over the Grangesberg iron ore mine in Sweden in late May and since then the board of Grangesberg Iron AB (“GIAB”) on which Anglesey holds three out of five board seats has been actively pursuing the restart of development activities at Grangesberg. These activities had been largely suspended for a number of months during the period in which GIAB was undergoing corporate reconstruction and refinancing.
Two major activities are now being progressed that together will enable GIAB and Anglesey to progress the development plan for the reopening of the Grangesberg mine. The first is a review of the resources at the property and it is expected that this will enable a resource estimate to be able to be made under the NI 43-101 standard. Such a compliant resource will ensure that future financing of project can proceed smoothly. The consultant to carry out this work has been selected and it is expected that a report on this estimate will be delivered to GIAB in August.
The second activity will look closely at geo-mechanical and hydro-geological aspects of the site which will be critical components of the permitting regime required for the dewatering and reopening of the mine. The principal consultant who will oversee this work, which will include drilling boreholes into the general mine area and the capture and interpretation of key data on the physical aspects of the ground and hydrological conditions, has been nominated and is preparing specifications for the selection of contractors. It is expected that all the drilling and analysis will be completed during the autumn and will allow the first stage of permit applications to be prepared and submitted.
A number of other commercial and marketing studies will commence as soon as the Swedish summer holiday season is over.
On June 12th the Swedish government rejected an appeal against the grant of the mining concession to GIAB. As a result this 25 year mining concession is now in full force and effect.
Labrador Iron Mines Holdings Ltd (“LIM”) in which Anglesey holds a 15% interest today released its Financial Statements and Management Discussion and Analysis. Key points are:
LIM completed its third operating season in December 2013 and achieved sales of approximately 1.7 million wet tonnes of iron ore and recognized net revenue of $85.9 million for fiscal 2014.
LIM’s sales were achieved at the expense of product quality, which impacted revenues and resulted in a net loss reported for of $C105.2 million including a depletion and depreciation charge of $C33.6 million.
LIM entered into a joint venture with Tata Steel Minerals Canada for the exploration and development of LIM’s Howse deposit by selling a 51% interest in Howse for $C30 million.
LIM completed its 2013 exploration programme of over 12,000 m of diamond and reverse circulation drilling.
The focus of LIM’s 2014 activities will be the development of the Houston Mine and, subject to completion of financing, plans to be in a position to begin production from Houston in 2015.
The full Financial Statements and MD&A can be found on Sedar.
About Anglesey Mining plc
Anglesey is carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.
In May 2014 Anglesey acquired the rights to earn a 57% interest in the Grangesberg iron ore mine in central Sweden which had prior indications that at least 115 million tonnes or iron ore at 40% Fe remain for exploitation in the underground workings.
Anglesey holds 15.3% of the shares of Labrador Iron Mines Holdings Limited which over the three years 2011 to 2013 produced about 3.5 million tonnes of iron ore from its operations in Canada, all of which was sold in the China spot market.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 653 9881;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800