Anglesey Mining plc
3 July 2017
LSE:AYM
Parys Mountain
Scoping Study Progress Update
Increase in annual
production rate expected
In May Anglesey Mining plc (“Anglesey” or the “Company”)
reported that work on the Scoping Study on the Parys Mountain
copper-lead-zinc project in North
Wales was being modified to examine increased throughput
alternatives at 700 and 1,000 tonnes per day compared to the 500
tonnes per day used initially. This stage of the study
continues to be carried out by Micon International Limited and
Fairport Engineering, in collaboration with company personnel and
is based on the resource estimate made by Micon in 2012.
The Micon 2012 JORC Code compliant resource estimate reported a
resource of 2.1 million tonnes at 6.9% combined base metals in the
indicated category and 4.1 million tonnes at 5.0% combined base
metals in the inferred category.
The Company previously indicated that it expected that the
inputs from the new phase would be incorporated into updated
financial models, with a view to having optimized development
scenarios available for consideration before the end of June
2017. The Company is pleased to report that both consultants
have made very significant progress and based on preliminary
reviews improved inputs to the financial model, including reduced
operating costs and increased annual production, are indicated.
It was previously expected that an increased annual production
rate would usually result in a significant increase in capital
costs. Whilst it is expected that there will be some increase
in capital costs these are likely to be less than previously
expected and together with the production and operating cost
adjustments should justify the increased production approach.
Both consultants are now working to complete their respective
exercises imminently and the Company expects to review the results
and issue a detailed summary as soon thereafter as is
practicable. The Company is firmly of the opinion that it is
preferable to allow the consultants adequate time to properly
complete their work to the highest standards than to insist on a
hasty completion that may be subject to error. The Company’s
current plan is that the results of the Scoping Study will be
announced ahead of the publication of the Annual Report and
Accounts during this month of July.
The Company has noted that there has been some significant
trading volume and volatility in the price of the Companies shares
during the last few weeks. The Company is unaware of any
corporate related reason for these movements but notes the recent
positive momentum in the prices of both zinc and copper, with zinc
inventories on the LME declining to eight year lows and copper
inventories also declining.
About Anglesey Mining plc
Anglesey is carrying out development and exploration work at its
100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK with a reported resource of
2.1 million tonnes at 6.9% combined base metals in the indicated
category and 4.1 million tonnes at 5.0% combined base metals in the
inferred category.
Anglesey holds a 6% interest and management rights to the
Grangesberg Iron project in Sweden, together with a right of first refusal
to increase its interest by a further 51%. Anglesey also holds
11.8% of Labrador Iron Mines Holdings Limited which has direct
shipping iron ore deposits in Labrador and Quebec.
For further information, please contact:
Bill Hooley, Chief Executive +44
(0)7785 572517
Danesh Varma, Finance Director +44
(0)207 653 9881
Eliliot Hance, Beaufort Securities +44 (0)207 382 8300