- Significant potential at Parys Mountain copper-zinc project
- Joint venture in place
- Labrador Iron restarts exploration
What it owns
The Parys Mountain copper-zinc asset in Wales
A 12% stake in Labrador Iron, which has assets in Canada
The Grangesburg iron ore asset in Sweden
What's the plan?
As it stands, Parys Mountain is known to contain 2.1mln tonnes of ore in the indicated category, grading 0.58% copper, 2.18% lead, 4.11% zinc, 46 grams per tonne silver, with a little bit of gold thrown in.
The inferred portion is exponentially larger however, ringing in at 4.1mln tonnes at 1.46% copper, 1.2% lead, 2.4% zinc, with silver and gold credits too.
Note the higher copper grade in the inferred section, which is only partially offset by the lower lead and zinc grades, albeit that the price assumptions used then are a little bit out of date.
But even without the better copper grade, the inclusion of some or all of the inferred material into an updated economic model is clearly going to have a positive impact.
Under the terms of the deal between QME and Anglesey, QME will carry out a detailed review of Parys Mountain with a view to developing the optimum mining plan. In return for undertaking this work, QME will then receive rights over development contracts as well as a 30% direct interest in the mine once it has reached the point of first production.
So, Anglesey is handing no cash over to QME at any stage, and will not be diluted at the company level either.
What's the latest?
In a surprise development in October, Labrador Iron Mines started work on a Preliminary Economic Assessment for its Houston project in Canada.
It is the first activity at LIM’s assets since production halted in 2014 because of the low iron ore price, said Anglesey.
Iron ore prices have recovered strongly over the past two years and there has been an uptake in offtake interest it added.
From the chief executive
Bill Hooley, Chief Executive stated: “We are very pleased to announce this financing, which represents significant support for Anglesey Mining. We look forward to completion of the optimisation study and bringing it into compliance and to advance the development of the Parys Mountain project.