Anglesey Mining PLC (LON:AYM) has released the results of its preliminary economic assessment (PEA) of the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales.
The assessment is based around an updated resource estimate of 5.2mln tonnes of indicated together with 11.7mln tonnes of inferred ore.
Financial modelling for the expanded case development scenario shows a pre-tax net present value (NPV) at a 10% discount of US$120mln for Parys, with an internal rate of return running at 26% over a 12-year mine life.
“This preliminary economic assessment demonstrates that a major mining operation can be established at Parys Mountain, with robust economics at a reasonable capital cost, and can produce copper, zinc, lead and gold concentrates at competitive operating costs able to withstand the cycles that occur within our industry, over a meaningful mine life of 10 to 12 years,” said Anglesey chief executive Bill Hooley in s statement.
Three separate development alternatives were evaluated, utilising planned mine tonnages ranging from 5.5mln tonnes at 1,500 tonnes per day in Case A to 11.4mln tonnes at 3,000 tonnes per day in Case C, the expanded case.
This case will involve around US$99mln of pre-production capital expenditure, and will generate a total cumulative cash operating surplus over a 12-year mine life of more than US$510mln.
Using the higher current metal prices and exchange rates would double the NPV to US$238mln.
“We are very encouraged with these financial results, particularly for the expanded scenario,” added Hooley. “The PEA clearly demonstrates that Parys Mountain has the potential to be developed as a serious mining project producing an average 7,300 tonnes of copper, 8,000 tonnes of zinc, 7,600 tonnes of lead, 6,000 kg of silver and 160 kg of gold, in concentrates, per year in Case C and become a major contributor to the UK economy.”