Released 27 September 2005
Chairman's statement at 2005 AGM
I would like to bring you up-to-date with the company's activities over the past few months and with our plans for the future. Since raising £464,000 in April we have completed the first hole of a planned three to four hole programme and we are more than half way down the second hole.
Successful first hole
We are extremely encouraged by the results from that first hole for two reasons. Firstly, AMC 15 intersected exceptionally high grade, polymetallic massive sulphides, at two separate stratigraphic horizons. In the Central horizon there was a 20cm intersection and in the Engine zone horizon 2.5 metres at a grade of 40 per cent combined metals.
Secondly, AMC 15 intersected an intensely altered volcanic succession, containing the three projected, mineralized stratigraphic horizons. These results confirm our geological model, providing considerable encouragement that our identified target, the northern margin of the volcanic complex, has considerable potential at three stratigraphic horizons: the Carreg Y Doll (above the Northern Copper Zone), the Central zone and the Engine zone.
AMC16 - second hole encouraging
Our second hole, AMC 16, 180 metres to the west of AMC 15, is currently at a depth of 480 metres. To date it has passed through the same, intensely altered volcanic succession, intersecting mineralization at the Carreg Y Doll (Northern Copper) and Central zone horizons as predicted. Core is just now being sent for assay. The hole has not yet reached the depth where the Engine zone is expected. Drilling in AMC16 began well but difficulties with broken ground have slowed the rate of progress over the past fortnight. We believe we are now past this difficult area.
Northern Copper zone
Both AMC15 and AMC16 have passed through the upper part of the siliceous structure referred to by the old miners as the Carreg Y Doll which, at greater depths, hosts the Northern Copper zone. Both holes have provided new information on the distribution of mineralization within this horizon, suggesting potential for a relatively narrow band of mineralization lying above the Northern Copper zone extending east-west following the northern margin of the volcanic complex. Old hole H30 returned 3.48% copper, 0.22% lead, 0.55% zinc, 8 g/t silver and 1.48 g/t gold from within this zone. We are using the information gained from these holes to increase our understanding of the Carreg Y Doll/Northern Copper Zone, but have not decided whether to drill this zone as a specific target this year.
We have carried out work on a number of specific areas on the project plan and financial evaluation of Parys Mountain but still have some way to go towards updated estimates for the project. Nor have we pursued actively the possibility of mining a small sample of gold at Parys Mountain, preferring to concentrate on the drilling.
As noted in the Annual Report, metal prices remain high, with copper in particular posting significant gains this year in sterling terms. Although zinc has not risen as much, the outlook for zinc demand and prices over the next few years is extremely robust and positive for the company. Zinc and copper would provide three-quarters of the company's revenues, with the balance coming from lead, silver and gold.
Contacts J F Kearney + (1) 416 362 6686
Ian Cuthbertson + (44) 1248 361333
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333