Anglesey Mining plc              

 

15 November 2006                                                                                             LSE: AYM

Continuing success with near surface drilling at Parys Mountain

·         Eight holes now completed on White Rock Zone

·         Zone continuous between surface and 280 metre level

·         Four holes completed on the Upper Engine Zone

·         Mineralization continues for 150 metres above 280 metre level

·         Early underground access and mining planned from these areas

·         A new third zone of mineralization identified

Anglesey Mining plc is pleased to report that twelve holes have now been completed in the 2006 drilling programme adjacent to the Morris Shaft at its Parys Mountain project in North Wales, eight on the White Rock Zone and four on the Upper Engine Zone.  The White Rock drilling confirms continuation of the White Rock Zone through to surface, with one intersection of over 68 metres.  The drilling of the Upper Engine Zone has demonstrated mineralization to 150 metres above the 280 metre level including base metal intersections of 11.3% and 16.1%.  A new third zone of mineralization has been identified within the Penymynydd Fault Zone which separates the White Rock and Engine Zones including a narrow intersection of over 40% base metal. 

 “These latest results and the subsequent interpretation of the geology of the relevant zones confirm our confidence in the ability for Parys Mountain Mine to become a significant producer in a short time frame.  This recent drilling on White Rock and the Upper Engine Zone represents a change of emphasis from prior drilling which demonstrated the long term potential of the property” said Bill Hooley, Executive Director of Anglesey Mining.  “With these latest results to hand, we are now able to move into the next phase of the project which will involve detailed mine access and stope planning ahead of the commencement of underground mining from these relatively shallow zones.”

Assay results have now been returned for nine holes.  Two holes (WD6 & CZ12) were located on the fringes of the ore-bodies and were not sent for assay.  Assay results are still awaited from one hole (CZ13).  Drilling currently continues on one further hole (WD9) in the White Rock Zone.

The principal assay results obtained from holes not previously reported are as follows: 

 

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

White Rock Zone

WD5

2.7

0.88

3.22

7.56

50

0.10

 

WD7  including    including

plus

68.4

44.6

11.3

7.1

0.18

0.22

0.27

0.34

1.35

1.78

2.58

1.71

2.49

3.18

4.98

2.99

22

24

40

20

0.50

0.52

1.24

0.11

 

WD8  including

22.4

14.8

0.53

0.73

3.97

5.59

7.07

9.92

101

127

1.95

2.52

Engine Zone and Penymynydd Fault Zone

CZ10

plus

plus

0.6

3.0

1.7

4.23

1.24

0.74

13.28

3.91

1.56

22.61

6.13

3.9

84

54

11

0.38

1.87

0.03

 

CZ11

plus

3.7

2.7

0.44

1.43

2.39

5.27

4.18

9.36

59

50

0.44

1.24


White Rock

The White Rock Zone was originally identified during the underground development programme in 1990.  A large part of the zone was located near the 280 metre level driven from the Morris Shaft and the current drilling programme was designed to explore the upward continuity of this zone towards the surface which had only been partially identified from earlier drilling.  The indicated resource estimate on the White Rock Zone calculated in 1990 was:

840,000 tonnes at 0.49% Cu, 3.44% Pb, 6.84% Zn, 42ppm Ag, and 0.45ppm Au.

The current round of drilling has confirmed that two separate and parallel lens systems exist in the White Rock Zone.  These have been designated the Main Lens and the Upper Lens.  In practise the Upper Lens probably consists of a series of not totally continuous lenses.

The longitudinal sections below show the distribution of mineralization within the Main Lens and Upper Lenses of the White Rock Zone (click on image for a larger version in a new window).  The principal underground level in the mine is located at the 280 metre elevation.

The red outline indicates the high grade core of the zone and the green outline indicates a peripheral zone that is often significantly wider than the core but at a lower grade.  To the south the mineralization is terminated by faulting and to the north the limit to economic mineralization is an assay cut-off.

Click on image for a larger version in a new window.

 

The following tables show the complete range of holes drilled into the White Rock Zone above the 150 metre level.

Summary of drill hole intersections within the near surface White Rock Zone

MAIN LENS

DRILL HOLE

From

(m)

To

(m)

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

WD1

40.1

47.5

7.4

0.45

3.30

6.06

36

0.67

WD2

44.0

49.0

5.0

0.15

1.08

2.10

25

0.31

WD3

25.1

49.5

24.4

0.16

1.02

2.18

39

0.70

WD4

21.6

50.4

28.8

0.47

3.71

6.05

46

0.52

WD5

26.9

32.7

5.8

0.16

1.17

1.13

9

0.16

WD7

72.8

84.1

11.3

0.27

2.58

4.98

40

1.24

WD8

59.6

82.0

22.4

0.53

3.97

7.07

101

1.95

WR1

51.2

57.2

6.0

0.13

1.72

3.16

13

0.15

WR2

136.7

155.4

18.7

0.26

1.92

3.69

52

1.12

IM1

98.4

108.5

9.1

0.10

1.60

2.11

13

 

H4

122.2

201.4

79.2

0.38

2.91

5.32

39

 

H8

68.2

84.4

15.2

0.25

1.84

3.24

27

 

H10

94.8

137.5

42.7

0.10

0.55

1.13

12

 

H10A

154.8

177.1

21.9

0.23

1.65

3.62

23

 

H13

53.3

82.0

28.3

0.36

3.08

5.57

29

 

H27

39.0

62.0

21.0

0.41

1.28

5.24

31

 

H28

75.9

109.4

33.5

0.17

1.16

1.98

13

 

 

 

UPPER LENSES

DRILL HOLE

From

(m)

To

(m)

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

WD3

12.8

17.6

4.8

0.16

1.02

2.18

39

0.19

WD5

13.5

16.2

2.7

0.88

3.22

7.56

50

0.10

WD7

16.8

23.9

7.1

0.34

1.71

2.99

20

0.11

WD7

39.5

58.2

18.7

0.27

2.05

3.37

18

0.20

WR1

18.7

31.9

13.2

0.21

1.06

1.70

30

 

WR2

104.2

117.9

13.7

0.51

4.15

6.13

28

0.23

IM1

63.5

69.0

3.5

0.67

4.33

7.74

71

 

H10

71.9

82.6

10.5

0.30

3.69

5.20

18

 

H10A

121.3

133.5

12.2

0.09

0.70

1.64

8

 

H13

24.4

29.0

4.5

1.24

6.30

11.07

183

 

H28

40.5

49.7

9.0

0.87

1.97

8.23

38

 

The 2006 drill hole results compare favourably with those with historic holes used to produce the 1990 estimate of White Rock resources.  The closer spaced drilling now nearing completion will allow for estimation of a higher confidence resource for the near surface portion of the deposit.  This revised resource estimate which is expected to significantly enhance the 1990 estimate above the 150 metre level will be carried out as soon as the final assay results are available.

The company believes that the White Rock lying close to surface and with a strike length of approximately 75 metres and with apparent widths often significantly exceeding 20 metres will be amenable to low cost bulk mining methods using a decline rather than the shaft.

Upper Engine Zone

The Upper Engine Zone was exposed on the 280 metre level in 1990.  The principal lens of massive sulphide mineralization, with a strike length of 50 metres and horizontal thickness up to 20 metres, was estimated to have the potential to yield 1650 tonnes per vertical metre at an average grade of 1.22% Cu, 3.19% Pb, 5.76% Zn, 193ppm Ag, and 1.48ppm Au.  The majority of this resource was located on and below the 280 metre level.

Four holes, CZ10 to CZ13, have been drilled to explore this mineralization above the 280 metre level, infilling between historic drill holes to demonstrate the upward continuity of the zone. Three, CZ10, CZ11 and CZ13, have successfully intersected mineralization of similar tenor to that seen on the 280 level.  CZ10 intersected 3.0 metres at 11.3% base metals and CZ11 intersected 2.7 metres at 16.1% base metals.  Assays for CZ13 are pending.  CZ12 was un-mineralised.

Summary of drill hole intersections within the Upper Engine Zone

DRILL HOLE

From

(m)

To

(m)

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

CZ10

198.3

201.3

3.0

1.24

3.91

6.13

54

1.87

CZ11

164.0

166.7

2.7

1.43

5.27

9.36

50

1.12

CZ13

Assays awaited

CZ2

179.2

213.1

34.9

1.66

3.60

7.42

97

1.06

CZ3

113.6

116.9

3.3

0.79

1.80

3.60

51

0.49

CZ6

164.2

165.2

1.0

1.90

8.10

13.40

37

0.35

A36

264.6

288.5

23.9

1.05

2.05

3.60

101

2.62

This current phase of drilling now indicates that the Upper Engine Zone mineralization exposed on the 280 metre level can be traced for at least 150 metres above the level with expected width and grade.  There is not yet sufficient information to confirm the strike length of the zone in this upward continuity, but there is no reason to expect that it will be materially different from that outlined on the 280 metre level.  Should this strike length continuity be confirmed then this will add significant additional tonnage able to be mined within a short time frame from the surface decline.  Further exploration is required to confirm this potential for mineralization closer to surface.  

Penymynydd Fault Zone

Ongoing re-evaluation of current and prior drilling has identified a third, near surface, smaller zone of mineralization, with an approximate strike length of 60 to 80 metres, within the Penymynydd Fault Zone, which separates the White Rock and Engine Zones. This mineralization was intersected in two of the 2006 holes, CZ10 and CZ11.  Details are shown below.

Summary of drill hole intersections within the Penymynydd Fault Zone

DRILL HOLE

From

(m)

To

(m)

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

CZ10

61.9

62.5

0.6

4.23

13.28

22.61

84

0.38

CZ11

47.6

57.3

2.6

0.40

2.67

4.50

62

0.47

CZ1

146.5

170.5

24.0**

1.11

2.02

3.82

48

0.61

CZ3

92.4

94.5

2.1

0.23

1.30

2.50

51

1.5

CZ6

68.9

70.3

1.4

0.74

4.00

6.40

56

0.13

CZ7

80.5

83.5

3.0

2.12

1.30

2.43

71

1.4

CZ9

21.3

27.8

6.5

1.03

2.62

4.95

93

0.81

H15

94.8

103.6

8.8

0.37

1.72

3.57

 

 

A30

84.1

84.4

0.30

1.57

6.89

14.2

11

 

**Note: Exaggerated width - hole intersected at a low angle to the mineralised zone

 There is some variability in this new Penymynydd Fault Zone and there may be some difficulties in mining within the fault, but there is a reasonable potential to add yet further to those resources currently identified in the upper sections of the mine and able to be mined easily and quickly from the planned decline.
 

Summary 

This continued success in the near surface drilling of both White Rock and the Upper Engine Zones has given the company great encouragement that the Parys Mountain Mine will be able to be brought into production from the planned and permitted decline portal site located close to these zones with a minimum of delay.  The physical shape and location of the zones in this area is also such that extraction will benefit from the use of declines rather than from a shaft with horizontal drives and will result in relatively low mining extraction costs.

About Anglesey Mining 

Anglesey Mining plc is a UK based company established in 1984, listed on the London Stock Exchange with two major projects under active development towards mining production.  

In addition to the Parys Mountain property, the company holds an 80% direct interest in the Labrador Iron Ore Project in Canada.  Anglesey has recently completed an initial Feasibility Study on this project and has elected to continue with its development by putting a mine into production at a rate of 2 million tonnes per annum.  The project is based on a resource of 100 million tones of hematite iron ore previously operated by the Iron Ore Company of Canada.

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
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