Anglesey Mining plc
3 July 2017 LSE:AYM
Parys Mountain Scoping Study Progress Update
Increase in annual production rate expected
In May Anglesey Mining plc (“Anglesey” or the “Company”) reported that work on the Scoping Study on the Parys Mountain copper-lead-zinc project in North Wales was being modified to examine increased throughput alternatives at 700 and 1,000 tonnes per day compared to the 500 tonnes per day used initially. This stage of the study continues to be carried out by Micon International Limited and Fairport Engineering, in collaboration with company personnel and is based on the resource estimate made by Micon in 2012.
The Micon 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 Company previously indicated that it expected that the inputs from the new phase would be incorporated into updated financial models, with a view to having optimized development scenarios available for consideration before the end of June 2017. The Company is pleased to report that both consultants have made very significant progress and based on preliminary reviews improved inputs to the financial model, including reduced operating costs and increased annual production, are indicated.
It was previously expected that an increased annual production rate would usually result in a significant increase in capital costs. Whilst it is expected that there will be some increase in capital costs these are likely to be less than previously expected and together with the production and operating cost adjustments should justify the increased production approach.
Both consultants are now working to complete their respective exercises imminently and the Company expects to review the results and issue a detailed summary as soon thereafter as is practicable. The Company is firmly of the opinion that it is preferable to allow the consultants adequate time to properly complete their work to the highest standards than to insist on a hasty completion that may be subject to error. The Company’s current plan is that the results of the Scoping Study will be announced ahead of the publication of the Annual Report and Accounts during this month of July.
The Company has noted that there has been some significant trading volume and volatility in the price of the Companies shares during the last few weeks. The Company is unaware of any corporate related reason for these movements but notes the recent positive momentum in the prices of both zinc and copper, with zinc inventories on the LME declining to eight year lows and copper inventories also declining.
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 11.8% 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 +44 (0)7785 572517
Danesh Varma, Finance Director +44 (0)207 653 9881
Elliot Hance, Beaufort Securities +44 (0)207 382 8300