www.angleseymining.co.uk
26% of Labrador Iron Mines in Canada
100% of Parys Mountain in Wales
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Development of other deposits is underway and production of the high grade hematite iron ore is targeted to grow from 2Mt in 2012 to 5Mt in 2015.
LIM’s properties are part of the Schefferville area iron ore district in the Labrador Trough where the Iron Ore Company of Canada mined from 1954 to 1982. See the Labrador Iron Mines website for further details.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
Anglesey owns 17.8m LIM shares (26%) and has 158m of its own shares in issue.
Anglesey Mining starts new phase of exploration at Parys Mountain
Anglesey Mining (LON:AYM) told investors that it has begun a new phase of exploration activities at Parys Mountain.
Parys Mountain is the site of an old mine on the island of Anglesey in North Wales. The copper-zinc-lead project has a historical resource of 7 million tonnes with combined metal grades of over 9 per cent.
The company said the initial exploration activities will last about a week. This will be the first stage in a review of the development options available for the project.
The company will carry out an Induced Polarisation (IP) geophysical survey and an associated Deep Overburden (DOB) geochemical survey. With this work AYM is targeting the potential location of an area of mineralisation known as the Engine Zone.
It explained that the Engine Zone has been shown to be a major resource bearing structure in the area.
The mineralised zone can be seen in the Morris shaft at depths of 300-400 metres below surface.
AYM added that the zone has been traced up-dip to a depth of about 200 metres and the new exploration programme is aimed at determining its location closer to surface.
Later this month the company will carry out a drill programme targeting the Engine Zone above the 200 metre level.
Initially 4 holes will be drilled, with a total depth of around 800 metres. Subject to results Anglesey may drill another six to eight holes, for an additional 1,200 metres.
According to AYM the location of the Engine Zone at these shallower locations is likely to be close to the shallow White Rock zone which was identified during a drilling programme which took place between 2006 and 2008.
“If this zone extension can be identified then the economics of a relatively small decline-based mining operation on both the White Rock and shallow Engine Zones will be much enhanced,” AYM said.
It added that a 2007 scoping study on White Rock was completed in 2007 and planning permission is already in place for a mining operation and a processing plant.
“In parallel with the drilling programme a review of the current options available for the development of Parys Mountain will be carried out,” AYM added.
“This review will initially concentrate on near term alternatives including the shallow White Rock and Engine zones but could be expanded to include the entire resource base and exploration potential at Parys Mountain.
“The results from this review will be expected by spring 2012 and will provide sufficient information to enable the future development plan for the project to be determined. In addition these results will provide guidance on the best commercial route for such development and the extent of any third party technical and financial input that may be required.”
