Anglesey Mining plc              

 

22 March 2006                 LSE: AYM

2005 Drilling Programme - Assessment of Results

New “Garth Daniel” Resource Area Identified

Anglesey Mining plc is pleased to report the assessment of previously announced results of its drilling programme carried out throughout the second half of 2005. A total of 1875 metres were drilled in three deep holes in an area of the Parys Mountain property about 700 metres north-east of the existing Morris Shaft and along the northern margin of the Parys Mountain volcanic complex. This area has been named “Garth Daniel” after an old nearby shallow shaft to distinguish it from the bulk of the company’s resources in the Morris Shaft area.

Highlights

Further drilling planned in this new area to expand the resource base.

The 2005 Drill Programme

Three drill holes, AMC15, AMC16 and AMC17, were drilled in this area which was targeted based on interpretation of geological and lithogeochemical work since 1996, including reinterpretation of two earlier holes, H30 and A15, drilled in 1968 and 1975 respectively, that revealed the area’s prospective nature. The relative location of all these holes is shown in the accompanying plan.

The five holes are located along strike and at the western end of the northern margin of the Parys Mountain volcanic complex. Hole AMC15 is located about 400 metres to the east of Hole AMC17 and together these five holes demonstrate that this mineralized area is at least 400 metres long west to east, with the other dimensions yet to be determined. Geologically the northern margin of the volcanic complex is known to continue over a length of 1.5 km, all of which the company believes has significant exploration potential.

All three holes intersected mineralisation , in each of three separate stratigraphic horizons, two of which encountered particularly high grades of mineralisation at the deepest horizon – the Engine Zone. In particular, drill holes AMC15 and AMC17 intersected significant zones of high grade massive sulphide mineralisation (5.5 metres of 22% metals in AMC 17 and 2.5 metres of 40% metals in AMC 15) at the Engine Zone horizon, the deepest of the three mineralized zones, lying at an average depth of 500 metres below surface. Both intersections also contain notable silver and gold values.

With three holes drilled in 2005 intersecting mineralisation in the three separate horizons this demonstrates the considerable mineral potential that exists in this Garth Daniel area.

It should be noted that the mineralisation in this Garth Daniel area represents a new extension of the Engine Zone and that this mineralisation lies outside the 6.5 million tonnes of existing resource at Parys Mountain. Any new tonnage delineated in the Engine Zone in the Garth Daniel area would therefore be in addition to this existing resource.

In addition, all three holes drilled in 2005 intersected two other mineralized horizons, the North Central Zone, which lies on average about 175 metres above the Engine Zone, and the Carreg y Doll horizon, which lies an average of 255 metres above the Engine Zone. Significant intersections at both horizons demonstrate the mineral potential of the area.

Exploration of this newly identified Garth Daniel area is at an early stage and the results demonstrate that there is potential for expansion of the resource base on the Parys Mountain property. The new area has been only partially tested by the five drill holes over an apparent strike length of 400 metres. There is significant potential to expand this area for approximately 1.5 kilometres to the east of AMC15, along the northern margins of the volcanic complex. Both the Engine Zone and North Central Zone remain unexplored east of AMC15. There is only a single old hole about 600 meters east of AMC15 which intersected the Carreg y Doll horizon returning 2.44 metres of 9% base metals but which was stopped before reaching the deeper North Central or Engine Zone horizons. This area to the east of AMC15 will be the target of further ongoing exploration drilling.

The main (previously reported) assay results of the 2005 drilling programme and the results from the two earlier holes are presented below.

 

2005 Main assay results
 

AMC-15

Width
Cu %

Pb %

Zn %

Ag ppm

Au ppm

Carreg y Doll Zone

9.70 m

0.48

<0.01

<0.01

<5

0.04

254.5 - 264.2 m

 

 

 

 

 

 

 

 

 

 

 

 

 

North-Central Zone

0.20 m

8.39

8.51

15.23

<5

0.06

366.35 - 366.45 m

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Zone

2.50 m

6.34

11.94

22.26

887

0.46

562.70 - 565.20 m

 

 

 

 

 

 

 

 
 

 

 

 

 

AMC-16

Width
Cu %

Pb %

Zn %

Ag ppm

Au ppm

Carreg y Doll Zone

24.0 m

0.65

0.21

0.40

7

0.26

298.5 – 322.5 m

 

 

 

 

 

 

 

 

 

 

 

 

 

North-Central Zone

1.50 m

0.81

0.23

0.60

8

<.01

352.2 – 353.7 m

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Zone

0.35 m

2.19

4.18

7.81

20

0.08

529.00 – 529.35 m

 

 

 

 

 

 

 

 
 

 

 

 

 

AMC-17

Width
Cu %

Pb %

Zn %

Ag ppm

Au ppm

Carreg y Doll Zone

4.20 m

1.05

0.02

0.04

<5

0.10

257.7 – 261.9 m

 

 

 

 

 

 

 

 

 

 

 

 

 

North-Central Zone

0.40 m

5.43

5.35

12.21

33

0.06

342.70 – 343.10 m

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Zone (main)

5.50 m

3.73

6.06

12.51

78

0.37

496.60 – 502.10 m

 

 

 

 

 

 

 

 

Earlier Holes

H30

Width
Cu %

Pb %

Zn %

Ag ppm

Au ppm

Carreg y Doll Zone

297.6 – 303.7 m

6.10

3.48

0.22

0.55

8

1.48

 

 

 

 

 

 

 

North-Central Zone

364.8 – 377.0 m

12.20

1.15

5.08

7.81

320

Not Assayed

 

 

 

 

 

 

 

Engine Zone

569.0 – 573.9 m

4.90

1.32

1.53

3.92

8

Not Assayed

 

 

 

 

 

 

 

 

 
 

 

 

 

 

A15

Width
Cu %

Pb %

Zn %

Ag ppm

Au ppm

Carreg y Doll Zone

277.4 – 295.4 m

18.00

1.33

0.03

0.07

Not Assayed

Not Assayed

 

 

 

 

 

 

 

North-Central Zone

363.4 – 364.9 m

1.46

1.75

7.50

14.80

25

Not Assayed

 

 

 

 

 

 

 

Vein Sulphides in

Engine Zone horizon

 

 

 

 

 

 

496.7 – 498.3 m

 540.6 – 542.6 m

 

1.60

 

2.00

3.60

 

0.68

0.07

 

0.08

0.12

 

0.11

 

Not Assayed

 

Not Assayed



Discussion

Engine Zone

The Engine Zone in this new Garth Daniel area is intimately associated with a relatively thin layer of highly altered rhyolite, identified using lithogeochemical techniques as being identical to rhyolites underlying Engine Zone massive sulphides around the Morris Shaft, located about 700 meters west of AMC 17 along the western margin of the volcanic complex. This rhyolite is so strongly altered that no primary volcanic textures are visible, and the extent and strength of alteration across all the five drill holes indicate that a major and persistent hydrothermal system (within which the massive sulphides formed) existed in both the Morris Shaft and the Garth Daniel areas.

The Engine Zone mineralisation in holes AMC17, AMC16, H30 and AMC15 is spatially associated with the east west striking northern margin of the Parys Mountain volcanic complex, which has been mapped over a strike length of approximately 1.5km. The high grade mineralisation intersected in holes AMC15 (2.5m at over 40% Zn + Cu + Pb) and AMC17 (5.5m at over 22% Zn + Cu + Pb) confirms the northern margin of the volcanic complex as a geological target with significant exploration potential for high grade massive sulphide mineralisation and expansion of the existing resource base.

North Central Zone

The North Central Zone is centred on bedded, massive to semi-massive sulphide mineralisation identical to that within the Engine Zone.

Hole AMC17 intersected 0.40m of semi-massive sulphides averaging 23% base metals. Holes AMC15 and AMC16 intersected similar narrow zones of mineralisation . In hole AMC15, a 0.20m bed of massive sulphide averaged 32% base metals. In hole AMC16 massive sulphide mineralisation over 1.5m averaged 1.6% base metals.

Hole H30 intersected mineralisation over 12.1m at this horizon, averaging 14% base metals. This interval contained at least three beds of massive sulphide. Hole A15 intersected mineralisation at the North Central horizon over 6.60m, averaging 7% base metal. This interval included at least two beds of massive sulphide.

The intersections in H30 and A15 demonstrate that the North Central Zone is capable of providing zones of economically mineable width and grade. The weaker mineralisation in AMC15, 16 and 17 demonstrate that this horizon is present, and consistently mineralised, throughout the newly identified Garth Daniels area. This North Central horizon has potential to add to the existing resource base over the potential strike length of 1.5 km.

Carreg y Doll Zone

The Carreg y Doll Zone consists of disseminated sulphides within a zone of intense silicification centred on the mudstone-volcanic contact at northern margin of the volcanic succession.

Intersections in H30 (4.57m averaging 4.8% base metal) and hole A15 (2.74m averaging 3.5% base metals) possibly indicate a narrow, east-west striking, lens of higher grade mineralisation within the Carreg y Doll, which may be comparable to the lens of higher grade mineralisation within the White Rock Zone near the Morris Shaft at the western margin of the volcanic complex.

It is believed that drill holes AMC15, 16 and 17 intersected mineralisation in the Carreg y Doll horizon outside the limits of this possible higher grade lens. Hole AMC17 intersected 4.2m averaging 1.1% base metals and Hole AMC 16 intersected 3m averaging 1.7% base metals and 6m averaging 1.0% base metals. Hole AMC15, the most easterly of the five holes, intersected 3m averaging 0.69% copper, with low lead and zinc values.

New Drilling Planned

The results of the 2005 drilling programme provide considerable encouragement to continue with exploration in the new Garth Daniel area.

Additional drilling is planned to test the extension of the mineralisation in the Engine Zone to the east and west in the Garth Daniel area and to better define the distribution of mineralisation in the Engine Zone within the 400m strike length encompassed by holes AMC15, H30, AMC16 and AMC17.

The additional drilling planned for the Engine Zone will also investigate the North Central Zone to further delineate the potential for higher grade lenses within this horizon and at the same time the drilling will also test the Carreg y Doll Zone, which in this area is relatively shallow and lies within 500m of existing underground development.

Summary

The results from the three holes drilled in 2005 are extremely encouraging from a number of aspects.

1) The latest three holes indicate that three mineralised horizons exist in the Garth Daniel area. The Engine Zone is clearly the most significant based on current knowledge whilst the North Central Zone provides a new and largely untested exploration target. The Carreg y Doll persists throughout Garth Daniel and, although possibly with less potential, is at a similar level and 500 metres from the existing underground development.

2) The success of the 2005 programme confirmed the exploration approach adopted by the company since 1996. The drill targets were identified from the revised stratigraphic interpretation of the local geology derived as a result of the comprehensive review of the geology and the extensive lithogeochemical investigations that the company has carried out over the past ten years. For example, identification of the different rhyolites was possible only by using the lithogeochemical techniques introduced to the property in recent years. The resultant successful intersections of the various mineralised horizons at or close to their predicted positions gives significant credibility to this interpretation and provides great encouragement for continued exploration.

3) Based on the revised interpretations and on the results from the latest three holes, coupled with the two earlier holes, the company’s geologists are confident that the mineralised horizons will continue further to the north east beyond the location of AMC15. This area has been virtually untested by both Anglesey Mining and previous companies who operated on the site. Such a continuation, if demonstrated, would provide a significant extension of the resource base and could make a major impact on the economics of mining at Parys Mountain.

4) The apparent continuation of the Engine Zone, which constitutes the bulk of the company’s published resources in the Morris Shaft area, for 1 kilometre to the Garth Daniel area suggests that both surface and underground drilling could locate other new economic resources over the intervening area.

Comment

Executive Director of Anglesey Mining, Bill Hooley says “The results from the three 2005 holes, and particularly the geological interpretation provided from these results, is very exciting. The fact that we intersected three different mineralized zones in all three holes, 400 metres apart, and the high grade in the Engine Zone in particular is very encouraging.”

“The company intends to continue drilling in the Garth Daniel area and in the north east extension to follow up on these results with the objective of adding to the resource base in a relatively short time frame. Drill holes for this next round of drilling are being laid out and drilling will recommence here in the next few weeks.”

 

For further details:

Ian Cuthbertson, Finance Director        + (44) 1248 361333

Bill Hooley, Executive Director              + (44) 1492 541981

John F. Kearney, Chairman                  + (1) 416 362 6686

Cathy Malins / Annabel Leather,
Parkgreen Communications                  + (44) 20 7493 3713


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  Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
  Phone  +44 1248 361333  
 mail@angleseymining.co.uk
 

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