Anglesey Mining plc
29 September 2014 LSE:AYM
Grangesberg NI 43-101 Resource Estimate
Anglesey Mining plc (“Anglesey”) is pleased to report that Grangesberg Iron AB (“GIAB”) has received an NI 43-101 Technical Report from Roscoe Postle Associates Inc (“RPA”) showing a compliant resource estimate for the Grangesberg Mine.
In May 2014 Anglesey announced that it had entered into agreements giving it the right to acquire a controlling interest in the Grangesberg Iron project in central Sweden including a direct 6% interest in GIAB and an option exercisable until 30th June 2015 to acquire an additional 51% in GIAB. Anglesey also entered into shareholder and cooperation agreements such that during the term of the option Anglesey holds management control and operatorship of GIAB and has appointed three out of five directors to the board of GIAB including the Chairman.
The Technical Report which was prepared by RPA and was dated 26th September contains the following summary table:
Mineral Resource Estimate Summary – August 22, 2014
Grängesberg Iron AB – Grängesberg Iron Mine
CIM definitions were followed for Mineral Resources.
The values for tonnages, grades and contained iron have been rounded.
Mineral Resources are estimated at a cut-off grade of approximately 20% Fe.
A minimum mining width of approximately 10 m was used.
RPA concluded that the Grängesberg iron ore deposit hosts a significant iron resource that has excellent potential for expansion at depth. Geophysical interpretations from the 1960s suggest that the ore body continues to at least 1,700 m below surface. Diamond drill holes confirm the mineralization continues to at least 1,100 m to 1,200 m below surface. In RPA’s opinion, more geotechnical, metallurgical, and other engineering studies are warranted to advance this Project.
“We are very pleased with the compliant resource estimate contained within the RPA report”, said Bill Hooley, Chief Executive of Anglesey, “This confirms our belief in the inherent fundamentals of Grangesberg and we look forward to moving the project through the next development stages with a target of restarting production around 2018 when we believe that the global iron ore supply-demand will be in a more balanced position than currently. We remain encouraged by the support being shown for the project at all levels in Sweden.”
A programme is currently being developed to 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 has commenced activities; drilling quotations have been obtained; and permit applications for the necessary work have been submitted to the relevant authorities. These activities 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. It is expected that all the drilling and analysis will be completed during the autumn and will allow the first stage of permit applications for mine development to be prepared and submitted.
The Annual General Meeting of Anglesey will be held at 11am on Tuesday 30th September at the offices of DLA Piper, 1 London Wall EC2Y 5EA, London. Shareholders are invited to attend.
About Anglesey Mining plc
Anglesey is also 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. The Company has received a detailed review of the resource base for the entire site which has recently been completed by Micon International and is evaluating these results. The company continues to review the future demand predictions for base metal concentrates particularly zinc ahead of any decision to move to development and production.
In May 2014 Anglesey acquired the rights to earn a 57% interest in the Grangesberg iron ore mine. The Grangesberg iron ore mine is situated in the mineral-rich Bergslagen district of central Sweden about 200 kilometres north-west of Stockholm. Until its closure in 1989 due to prevailing market conditions, the Grangesberg mine was the third largest iron ore mine in Sweden, with in excess of 150 million tonnes of iron ore having been mined down to around 500 metres deep.
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 6539881;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800;