27 September 2006 LSE: AYM
At the Annual General Meeting of Anglesey Mining ('Anglesey') shareholders, held in London on 26th September, the Chairman John Kearney informed shareholders that considerable progress had been made at both the Parys Mountain zinc-copper property in North Wales, and at the Labrador Iron Mines properties in Canada.
Exploration drilling over the past year has shown considerable success at two separate targets. As a result of four deep holes completed as part of a programme commenced last year, the Garth Daniel zone has now been identified as a new area of considerable exploration potential that is still open to the east and that could add significantly to the total resource already identified at the mine. Major intersections included 2.2 metres at over 40% base metals and 5.5 metres at over 22% base metals. Drilling will continue to test the eastward extension of this zone which could extend for over 1.5 kilometres.
A second drill rig was brought to site during the summer to test both the White Rock zone and the Upper Engine zone between the previously defined resource on the 280 metre underground level of the Morris Shaft and surface. Results from both these areas have been very encouraging and the assay results currently returned from White Rock indicate that the size and the grade of this zone should continue from the 280 metre level through to surface. Significant intersections include 6.3 metres and 8.5 metres both at over 11% base metals. Visual results from the Engine zone also indicate that this zone continues upwards to at least the 150 metre level and is not yet closed out. Assay results are still awaited for this last hole.
Drilling is continuing on both zones with the intention of outlining sufficient economic ore at relatively shallow depths to justify the early commencement of underground production through a decline adit located in the near vicinity of these areas and close to the existing Morris Shaft.
In addition to exploration drilling the Company has conducted geological modelling and is currently part way through a review of metallurgical design, including testwork based on modern technologies to improve metal recoveries.
The Company has been very busy in Labrador during the last six months investigating the potential of its various deposits and in reviewing the feasibility of returning these previous operating units back into production.
Anglesey's Canadian operating subsidiary, Labrador Iron Mines Limited ('LIM'), has completed an 11 hole drilling programme on the three most important deposits and additionally has carried out geological and geophysical field investigations. Assay results from this drilling programme are still awaited. LIM has completed a geological modelling programme on the first deposit likely to go into production and has utilised the results from this in detailed mine planning.
LIM is also carrying out metallurgical testwork to determine the product specifications that are likely to be generated by the simple upgrading techniques that are currently being considered.
An initial environmental review has been completed and a base-line study has now commenced. The railroad from the ice-free port of Sept-Iles on the Saint Lawrence River is some 570 kilometres long. The upper 200 kilometres of this has not been used for ore haulage for a number of years and LIM commissioned a comprehensive review of this railroad to determine its suitability for ore transport.
An indicative iron ore marketing review has taken place and capital and operating cost estimates have been made based on detailed discussions with a number of equipment suppliers and contractors. LIM continues to hold discussions with the various First Nation groups to ensure their full understanding, support and future involvement in the project.
The Company is in the process of compiling all the information that it has gathered during the last year together with earlier data and is finalising a Feasibility Study which indicates that the ongoing development of the project appears to be justified.
All resolutions proposed to the meeting were passed and Messrs Hooley, Turner, Lean, Miller and Varma were re-elected to the Board. A motion from the floor commended the non-executive directors for their dedication during the last financial year in continuing to not draw salaries.
Anglesey Mining plc is a UK based company established in 1984 and listed on the London Stock Exchange. In addition to the Parys Mountain copper-zinc-lead project the Company is working to establish the Labrador Iron Mines Project in Canada. This is a unique opportunity to re-establish some major iron ore mines previously operated by the Iron Ore Company of Canada and is based on 100 million tonnes of hematite iron ore. This will involve a direct shipping partially developed project which will produce lump ore and sinter fines with a short time to production and relatively low capital expenditure requirements.
For further details please refer to previous releases on 25th July and 5th September 2006 which can be found at www.angleseymining.co.uk.
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
Parkgreen Communications + (44) 20 7493 3713
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333