29 September 1998
Anglesey Mining plc today announces its preliminary results for the year
ended 31 March 1998.
The loss for the year before taxation was £97,551 (1997 £98,446). The
company has no revenues from the operation of its properties and almost all
of this loss represents corporate and administrative expenses which, in
accordance with the company's accounting policy, are charged to the Profit
and Loss Account. During the year fixed assets totalling £121,549 (1997 -
nil) were acquired, £414,658 (1997 - £135,268) was capitalised in respect of
the development of the Parys Mountain property and £98,531 (1997 - £97,040)
was expended on corporate costs, administration expenses and the
investigation of exploration and development opportunities.
The company is continuing the exploration of the Parys Mountain property by
its ongoing geological re-assessment programme and further lithogeochemical
studies to which has been added diamond core drilling which commenced in
October 1997. Diamond core drilling is arranged at the new Dolaucothi site
and further geological evaluation is also planned. In order to carry out
all these activities further funding will be required. The directors remain
attentive for opportunities to be involved in appropriate new mineral
There is no dividend.
Extracts from Chairman's statement
I am pleased to report another year of real progress for the company with
highlights being the commencement of a new phase of exploration borehole
drilling at Parys Mountain, the application of a number of new and
advanced techniques to the geology at the Parys property and, after the
year end, final settlement of the litigation which had been taken against
Progress at Parys Mountain
Diamond borehole drilling started last October and four holes of a planned
first phase five or six hole drilling programme have been completed.
Although economic grades of mineralisation were not intersected, the
information gained from these boreholes is both useful and significant.
We consider the results to be encouraging and continue to be optimistic.
The geological reassessment of Parys Mountain which commenced in 1995 is
continuing and expanding. Major advances are being obtained through the use
of lithogeochemistry and associated advanced analytical techniques to
identify accurately different rock types, even to the stage of locating
different lava flows within the package of volcanic rocks. Accurate dating
of the age of the rock types is central to understanding the geological
Joint studies have been undertaken in conjunction with the British
Geological Survey using new technologies and advanced instruments. These
have included infrared mineral analysis, radio isotope dating and three
dimensional modelling together with studies of the alteration effects of hot
fluids which are the source of all the mineralisation.
All of the ongoing exploration, geological and technological work at Parys
Mountain continues to indicate that there is potential for the discovery of
substantial additional resources on the property, the largest part of which
It is clear that the Parys Mountain property requires and justifies further
detailed exploration and a major new drilling programme. Subject to
securing the necessary funding, the company has developed plans for a major
drilling programme comprising a minimum of 10,000 metres in 10 to 15 holes.
I was pleased to be able to report previously that the outstanding
litigation concerning the Parys Mountain property has been settled on very
satisfactory terms. This litigation had occupied a disproportionate amount
of management time over the past two years and settlement has removed a
cloud that was hanging over the company. We are pleased to be able to put
the litigation behind us so that we can once again focus our efforts on the
development of the property.
Anglesey Mining is making real progress. Exploration and development of a
mining property requires hard work, patience and lots of money. We are
working very hard, shareholders are being particularly patient but we still
need more money to carry out our ambitious plans.
Despite world metal prices having had a very poor year the longer term
outlook for the metals we have at Parys Mountain, especially zinc, is quite
positive. At present investor interest in mining companies is at a major
low but we are part of a cyclical industry and I am sure conditions will
change. We remain undaunted and will press ahead with determination.
I would like to thank all employees, directors, consultants and advisors for
their efforts and enthusiasm and particularly to commend shareholders for
their continued support.
John F. Kearney
29 September 1998
Profit and Loss Account for the year ended 31 March 1998
£ £ Turnover - continuing operations - - Net operating expenses
Operating loss - continuing operations
Loss on ordinary activities before taxation
Tax on loss on ordinary activities - - Retained loss for the year after taxation
Loss per share - basic (0.1) pence (0.1) pence
The annual general meeting is called for 12 noon on 29 October 1998.
The accounts on which this preliminary statement is based have been audited
and whilst the auditors continue to draw attention to fundamental
uncertainties, their report is not qualified.
Contacts : Ian Cuthbertson John F. Kearney Company Secretary Chairman (44)1248 361333 (1)416 362 6686
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333