Anglesey Mining plc              
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Recent Press Release

28 May 1998

INTERIM PROGRESS REPORT ON EXPLORATION AT PARYS MOUNTAIN

Anglesey Mining plc is currently carrying out an exploration and drilling programme at its Pays Mountain project in Wales with the objective of increasing the overall geological resource base at the property. This programme started last October and the first three holes of a planned five or six hole first phase drilling programme have been completed. This programme is designed to explore the potential for additional zones of massive sulphide mineralisation in the area to the east of the known Engine zone (which was defined during the 1990/91 underground programme) and east of the existing Morris shaft.

Central zones

The target areas are referred to as the South Central zone and the North Central zone. Their location has been indicated by various mineral intersections obtained in a number of widely spaced holes drilled during earlier exploration programmes. The first part of the new exploration programme has focussed on only the near surface portion of the South Central zone.

If these zones prove to be economically viable, they could be worked in conjunction with the Engine zone using the existing Morris shaft and thus would provide the additional underground working areas that would justify and support a larger operation and higher production rate than the 1,000 tonne per day (350,000 tonnes per year) indicated by the Feasibility Study completed in 1991, perhaps as high as 2,000 tonnes per day (700,000 tonnes per year) with the consequent improvement in viability and profitability.

Drilling Results

Three widely spaced vertical holes totalling 1,020 metres were drilled to explore the near surface portion of the South Central zone. These holes did not intersect the projected mineralised lenses but geochemical sampling and analysis of detailed core logs and geophysical surveys of all three holes have confirmed the anticipated geological setting and structure. The restricted dimensions of the lenses present small drill targets which are difficult to hit with wide spaced drilling particularly considering the large size of the target area. The potential for massive sulphide lenses remains and further closely spaced drilling in this area is warranted.

Hole AMC 11, located about 500 metres east of the shaft, was drilled to a depth of 207 metres where it intersected the target horizon but it is now believed the hole was drilled too far to the east of the zone.

Hole AMC 12 was drilled about 300 metres northeast of AMC 11. This hole proved very difficult to drill and reached the target horizon at a depth of 450 metres. The zone at this horizon consisted of a succession of intensely altered felsic volcanics and mudstones containing small amounts of galena and sphalerite. Lithogeochemical analysis of core samples taken from this hole shows a strong zinc alteration at the target horizon. The hole was subsequently tested by a downhole electromagnetic geophysical survey which showed a strong off hole response at the target horizon. This has been interpreted to indicate a conductor within 50 metres of the hole. The results of this hole are particularly encouraging and indicate that the zone is present at the anticipated horizon and the low grade mineralisation, together with geophysical results, indicate that a larger ore body may be close by.

Hole AMC 13 was drilled 170m west of AMC 11 and intersected the succession at the target horizon. It was not possible to complete a planned geophysical survey of this hole as the hole became blocked at deeper levels, although weak geophysical conductors were identified higher in the hole.

The results of all three holes have been subjected to lithogeochemical sampling, downhole geophysical surveys and detailed geological interpretation. The results support the new geological interpretation developed by Anglesey last year and continue to demonstrate the potential of locating mineralised lenses in the near surface portion of the South Central zone. Much more drilling is required in this area.

It should be noted that the three holes were drilled in the near surface portion of the South Central zone only. None of the holes were drilled in the deeper portion of the South Central zone or in the North Central zone. These two areas will be tested by further drilling which is expected to recommence within the next two weeks.

Geology Studies

Whilst the diamond drilling programme has been under way, lithogeochemical surveys and geological studies have been continuing. These studies are providing a stratigraphic and structural framework for the many zones of both massive and disseminated sulphide mineralisation which are known to exist on the property and a much more informed assessment of the overall potential of the Parys Mountain volcanic succession. This succession has now been demonstrated to extend over a strike length of 3.5 kilometres. It is estimated that only one third of this area has been tested by drilling and much of this in widely spaced holes.

New Technology

Meanwhile a joint project was carried out by Anglesey in conjunction with the British Geological Survey and KRJA Systems Ltd. using an innovative mineral exploration methodology based on a newly developed scientific instrument, the PIMA (portable infrared mineral analyser). The results of the PIMA analysis will be integrated with other data within a state of the art three dimensional modelling system (VULCAN) to assist in identifying economic and mineral resources at Parys Mountain.

The PIMA is a portable hand held spectrometer developed recently for mineral exploration purposes. Attached to sophisticated software it is capable of providing important mineralogical information which can assist in determining proximity to mineralisation.

VULCAN is an advanced 3 D computer software modelling and visualisation package which can analyse a variety of spacial, analytical, geological and environmental data sets. These can be manipulated and integrated to produce new models to aid mineral exploration decisions and economic mine planning. All of the historical assay results together with the more recent lithogeochemical sampling results from Parys Mountain have now been inputted into VULCAN. The PIMA was successful in detecting distinctive mineral assemblages related to lithology and formed by the alteration of the host rocks during interaction with mineralising fluids at Parys Mountain. This has enabled the drill holes to be coded according to their alteration mineral assemblages, and the resulting alteration pattern to be integrated with geological and geochemical data prior to modelling with VULCAN. The VULCAN modelling shows the clear potential of the methodology and the results are helping to provide new insights for understanding the metallogenesis. This in turn will assist in the delineation of additional targets and ore reserves at Parys Mountain.

Commentary

Commenting on progress to date, Chairman John Kearney said: "All of the ongoing exploration and geological work at Parys Mountain continues to indicate that there is potential for the discovery of substantial additional resources on the property The recent drilling results, although the holes did not hit economic mineralisation, are encouraging. We continue to be optimistic."

"It is becoming increasingly clear that the Parys Mountain property requires and justifies a major drilling programme and that the potential is very significant. Subject to available funding, the company has planned a detailed drilling programme comprising a minimum 10,000 metres in at least 10 to 15 holes to be drilled over the coming year."

The Parys Mountain property is the only known undeveloped polymetallic mineral deposit in the United Kingdom and contains an important geological resource of 6.5 million tonnes at a combined average grade of over 10% zinc, copper and lead together with appreciable quantities of gold and silver.

Contacts :

Ian Cuthbertson   John F. Kearney
Company Secretary   Chairman
01248 361333   001 416 362 6686
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  Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
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