Anglesey Mining plc              

 

6 February 2007                                                                                                LSE: AYM

New Resource Estimate for White Rock

Updated Drilling Results

 

Anglesey Mining plc (Anglesey) is pleased to announce that it has received an independent JORC resource estimate on the White Rock zone at its Parys Mountain mine in Anglesey UK from Micon International Co Limited.

This confirms the company’s opinion that White Rock, which is now estimated at a total of 2.15 million tonnes at a zinc equivalent grade of 6.7%, is amenable to early stage development.

In addition all outstanding assays have now been received from the 2006 drill programme.

 

Highlights

 

The White Rock zone is separate although in close proximity to the larger Engine zone which was previously estimated to contain an indicated and inferred resource of 4.2 million tonnes.

 

Bill Hooley, Executive Director of Anglesey commented “The results from the 2006 drilling programme on the White Rock zone have now been brought together in this increased resource estimate. It is particularly encouraging that the zone shows good continuity along and across strike and down dip and this should lead to relatively simple low cost mining methods.

It is also pleasing to note that a significant portion of this resource is identified close to surface which will ensure that a minimum amount of initial development from surface will be required to develop and exploit this resource. We now look forward to rapidly securing the necessary finance to commencing underground development in the next few months.”

 

Resource estimate

Micon International Co Limited (Micon) which is an internationally recognised geological and mining consultant with offices in Canada, the UK and South Africa, carried out a resource review based on all the available White Rock drill data. This included 51 surface holes drilled prior to 1988, 47 underground holes drilled in 1990, underground channel sample data from 1990 and a further 9 surface holes drilled in 2006. All of these data were incorporated into a block model which was created using Datamine.

The resource was categorised based on the internationally recognised Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (JORC Code), using a zinc equivalent cut off across a representative range of metal values. The data has been defined into two vertical levels above and below the 280 metre level in the shaft.

Details of these Micon resource estimates to the JORC Code are shown below:

 

 

The methodology used to make these estimates commenced with a geological interpretation carried out jointly by Anglesey and Micon which identified two separate lenses within the zone. Typically these are separated by around 10 metres with mineralised material commonly occurring between the lenses. This resulted in a series of sections being constructed through the zones. All the sections were joined to form a 3-D wireframe shape of two lenses. A three dimensional view with the Main lens in red and the Upper lens in green is shown below:

 

The data used for estimation of the grade and tonnes for the two zones were extracted within the wireframe. The data extracted from each zone was composited for Cu, Pb, Zn, Ag, and Au. The composite length used was 1.5 metres.

Based on the general drill spacing and orientation of the mineralised zones, the search ellipse of estimation was oriented in direction and dip of the mineralised zone. A set of ranges were used as a first search. A greater search range was used to fill the rest of the blocks in the model.

The block size used for the model was 3 metres in the X direction, 3 metres in the Y direction and 10 metres in the Z Direction. Sub blocking was allowed to minimise the volume variance. Inverse distance method was used with a power of 5.

The estimation resulted in categorising the resource. The White Rock Zone had dense drilling with underground channel samples. It was possible to assign a portion of the mineralisation to the indicated category. The block which was assigned values on the first search was defined as indicated resource. The remaining portion of the mineralised zone which was estimated using the greater search range was assigned to the inferred category.

Earlier Resource estimate

These White Rock resources are separate from the Engine Zone and Carreg-y-Doll resources which have been detailed previously. These were reported as follows:

 

 

Development Plan

The White Rock resource estimate shows that approximately 67% of the Indicated resource is located above the 280 metre level. Of this more than 550,000 tonnes is located within 100 metres of the surface and will be amenable to early mining. This upper portion of the resource is also higher in grade with a zinc equivalent of approximately 8.12%.

The company is currently preparing an underground development plan to access the White Rock zone. This will be based around a decline to be driven from a site close to the planned processing plant. It is expected that the first major intersections into the zone will be made at around 50 metres depth involving around 250 metres of decline development. This intersection in ore would then be set up as the extraction level for the first stoping block above that level.

The decline will commence as soon as financing is complete. The first step will be the construction of the portal and the 250 metres of development to ore would then be expected to be carried out within a further three months. Production from the White Rock zone is planned at a rate of 500 tonnes per day

During the White Rock production period, access will be gained to the partially developed Engine zone indicated resource area including the Morris Shaft, and this will be developed for production to follow White Rock. In this second phase, production will increase to 1,000 tonnes per day. In the third development phase, the inferred resources plus the Garth Daniel area that was identified in 2005 and 2006 will be accessed for further production.

Drilling Update

The company has now received all assay results from its 2006 drilling programme. Holes not previously reported are WD9 in the White Rock zone and CZ12 and CZ13 in the upper Engine Zone. CZ12 did not intersect mineralisation and was not assayed. The results from WD9 have been included in this current resource estimate.

The results from these holes are:

 

Width

(m)

Cu

(%)

Pb

(%)

Zn

(%)

Ag

(ppm)

Au

(ppm)

White Rock Zone

WD9

  including

    including

    and

79.4

41.3

6.8

8.2

0.20

0.23

0.56

0.33

1.47

2.07

4.09

3.54

2.32

3.18

5.67

6.44

20

21

28

30

0.40

0.43

0.21

1.11

Engine Zone and Penymynydd Fault Zone

CZ13

3.2

2.53

5.27

9.20

46

1.04

 

Engine zone

The recent 2006 Engine zone drilling confirms the continuing up-dip continuity of this zone. A short programme of overburden geochemical sampling at depths of 1.5 to 3 metres was completed over the assumed surface outcrop of the Engine Zone. The results from this programme have returned strongly anomalous values for base metals and are believed to indicate base metal mineralisation within the Engine Zone at surface. These results provide considerable encouragement to continue drilling the Engine zone in the previously unexplored area up-dip of CZ13. Any additional near surface Engine zone resources so identified will be accessible through the White Rock decline and will add significantly to the economics of the first phase of the mine.

Qualified Persons

The information in this release that relates to the White Rock Resource is based on information complied by D K Mukhopadhyay, a geologist with Micon who is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style and type of deposit under consideration and is qualified as a Competent Person as defined in the JORC Code and who consents to the inclusion of the matters based on his information in the form and context in which it appears.

The above information has been reviewed and verified by Bill Hooley, Executive Director of Anglesey. Mr Hooley has 38 years of mining engineering, management and consulting experience, graduated as a mining engineer from the Royal School of Mines London, and is a Fellow of the Australasian Institute of Mining and Metallurgy.

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 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 tonnes of direct shipping hematite iron ore previously developed 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 7851 7480

 

or visit website www.angleseymining.co.uk

 

end  


  Home
Press releases
Copyright
© 1996-2010
  Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
  Phone  +44 1248 361333  
 mail@angleseymining.co.uk
 

LSE:AYM
share price