The highlight of year was the completion in January 2021 of an independent preliminary economic assessment (PEA) on Anglesey’s Parys Mountain project, chairman John Kearney said in the company’s results for year to the end of March.
The PEA demonstrates that a major copper-zinc-lead mine can be developed on the island of Anglesey in North Wales and that the Parys Mountain property is much more substantial than previously considered. It has a larger mineable resource base, can support a longer mine life and can generate significantly enhanced financial returns, Kearney said.
During the year Anglesey increased its interest in the Grangesberg Iron project in Sweden and now holds a direct 19.9 % interest, together with management rights, and a right of first refusal to increase its interest to 70%.
The former Grangesberg mine, located about 200 kilometres north-west of Stockholm, had produced more than 150 million tonnes of iron ore prior to its closure in 1989 due to then-prevailing market conditions. The Grangesberg deposit hosts a significant iron ore deposit of over 150 million tonnes, in all categories, and has excellent potential for expansion at depth, Anglesey noted.
Anglesey in conjunction with its Swedish partners in Grangesberg is planning to commission a PEA on the development of the Grangesberg project based on updated forecasts for long term iron prices and on a modified development programme to take advantage of optimisations expected since previous studies.
Meanwhile, on the other side of the Atlantic, Labrador Iron Mines (LIM), in which Anglesey Mining holds a 12% interest, published an updated, independent, PEA on its Houston Project in February 2021.
The company has recorded a (non-cash) gain of £4.05mln in the value of the group’s holding in LIM, resulting in total comprehensive profit for the year of £3.71mln, compared to a comprehensive loss for the prior year of £327,860.
The pre-revenue company said the reported loss before tax held steady in the year at £328,518 compared to a loss of £304,510 the year before.