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: Longer term shipping solution for LIM could see shares rally, says Ambrian
A longer term shipping solution for Labrador Iron Mines' (TSE:LIM) material could see Anglesey Mining's (LON:AYM) stock rally, says broker Ambrian, which has started coverage on the firm.
Anglesey holds 33 per cent of LIM - Canada's next iron ore miner, which is now in production, and hopes to to rail more than 600,000 tonnes to port in 2011.
Ambrian rates Anglesey, which also owns 100 per cent of the Parys Mountain zinc-copper-lead deposit in north Wales, a 'buy' targeting a price of 81 pence.
Iron ore produced in 2011 is being sold to IOC (Iron Ore Company of Canada) and delivered to Asian markets and re-sold by IOC's marketing organisation on the spot market.
Last month, LIM revealed that it had not yet concluded any agreements for the sale of iron ore beyond 2011. However, marketing discussions are continuing with potential customers in both Europe and Asia, it said.
"We think a near-term trading opportunity represents itself in Labrador Iron Mines developing a long-term solution to its access to the seaborne market," said Ambrian analyst Nick Mellor, adding that Anglesey's share prices had been hampered since mid-year by concerns over long-term access to the seaborne market.
He added: "We expect news from management on the development of a longer term shipping solution at some point in 2012.
"It is the resolution of this point (and more clarity over its implications on the upfront and ongoing costs) that we believe could see the stock rally."
The analyst highlighted that LIM, longer term, hoped to ship its own material from the quay it has been allocated by the Port of Sept-Îles.
Mellor also highlighted that Anglesey's Parys Mountain was a promising VMS-style polymetallic project in Northern Wales.
"The project already has a mining licence (albeit at a low run rate) and the historic resource estimate at Parys of 8 million tonnes at 4.6 per cent copper equivalent looks very competitive versus developing peers," he said.
Last Friday, Anglesey said it had begun a new phase of exploration activities at Parys, adding that 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.
