ANGLESEY MINING PLC - Update on Parys Mountain Optimisation Study
Update on Parys Mountain Optimisation Study
(“AYM”) is pleased to report on progress of the Optimisation Study being carried out on its copper, zinc, lead, gold and silver project, located on the island of Anglesey in .
The Optimisation Study is being conducted under a and Cooperation Agreement entered into with QME Mine Engineering Services (“QME”) which is based in , . QME is carrying out this study at its own expense in return for which AYM has agreed to grant QME various rights and options relating to the future development of as detailed in the AYM RNS of .
QME has assembled a team of qualified and experienced geologists and engineers particularly for this project. The QME team has conducted two workshops with AYM since the project commenced in late November, including a site visit to earlier this month.
QME is examining a number of development scenarios for which include the initial development of the mine from a new decline, with first production from the , and alternatively initial development through refurbishing the existing Morris Shaft, with early production from the higher value though deeper . A number of sub-alternatives are also being considered.
Anglesey Chief Executive, , said:
In order to fully evaluate these alternatives QME has carried out a detailed validation and review of the wire-frame models of the various orebodies and zones that will form part of the new production plans. QME has also examined the classifications of resources utilised previously and at this point in time believe that it will be possible to increase the tonnages available for production when these reviews are combined with updated costing models. Work will continue on the wire-frame review and is expected to lead to development of alternative mine production plans in the coming weeks.
QME has significant experience in mine development and operation through its involvement in major mining activities in and elsewhere. As its understanding of the requirements for development and production at has evolved since November, QME has commenced the compilation of a detailed cost data-base to be utilised in examining each of the alternative scenarios. This will ensure that the comparative financial models to be produced for each option will be consistent and current. It is expected that compilation of this data-base will be completed to tie in with the completion of the alternative mine production plans as noted above.
The next major piece of work for QME, and which follows directly from the site visit earlier this month, will be the development of plans to reopen and utilise the 300 metre deep Morris Shaft as a potential early access option to the higher value . It is believed that this shaft, though currently flooded to near surface, is in reasonable condition and could be dewatered and rehabilitated relatively easily. In addition to the shaft itself, QME has examined the headframe and winder on site and will consider if and how best this existing equipment can be utilised for the shaft reopening exercise. Development of the logistics and costing of this possible approach will be incorporated into the various alternative models as information becomes available.
The original timetable was for the entire Optimisation Study to be completed by the end of and this target still appears to be quite achievable.
In a new Scoping Study on the , was prepared by and The Scoping Study envisaged a mining rate of 1,000 tonnes per day, to produce an average annual output of 14,000 tonnes of zinc concentrate at 57% Zn, 7,200 tonnes of lead concentrate at 52% Pb and 4,000 tonnes of copper concentrate at 25% Cu, over an initial mine life of eight years.
The QME Optimisation Study will build on the results of the Scoping Study which will be used as a Base Case for comparison purposes, and it is hoped and anticipated that the Study will result in a development plan that both increases the mine life beyond the eight years, as well as providing improved financial results.
, based in , , supplies services to the mining industry worldwide. QME is involved in various mining projects in the fields of both mine development and mining operations. QME also supplies new and re-manufactured underground and open pit mining equipment to the international mining industry worldwide and has carried out both large and small scale underground mine development contracts for a number of clients including New Boliden Tara Mines at Navan Ireland, at Curraghinalt Northern Ireland, and Lafarge Holcim at Glensanda Scotland.
Anglesey is carrying out feasibility and development work at its 100% owned copper-zinc-lead deposit in , 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.
Following a recent refinancing, Anglesey now holds an 8.7% interest, (increased from 6%), and management rights to the Grangesberg Iron project in , together with a right of first refusal to increase its interest by a further 50.1%. Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in and .
For further information, please contact:
, Chief Executive +44 (0)7785 572517
, Finance Director +44 (0)7740 932766
Quick facts: Anglesey Mining PLC
Market Cap: £3.65 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE