Anglesey targeting 2020 production at Parys Mountain
Source - SMW
Anglesey Mining has issued an update on the Parys Mountain project in North Wales and said it was planning for production on 2020.
On 24 July, Anglesey reported on the scoping study completed by Micon International Limited and Fairport Engineering Limited.
It said the financial figures used in the scoping study were based on metal prices prevailing at that time.
"Since July all the metals to be produced at Parys Mountain have increased in price with copper at $3.10/lb compared to $2.50/lb in the Scoping Study, zinc has increased to $1.40/lb compared to $1.25/lb in the Study and lead has moved to $1.09/lb compared to $1.00.
"There has also been upward movement in both gold and silver. In contrast, the pound has strengthened somewhat against the US dollar and is now trading around $1.30 to £1.00 compared to $1.25 in the Study.
"The overall impact of these changes would be very positive on the pre-tax NPV and IRR.
"The fundamentals underlying the recent increases in these metal prices are well founded and are likely to continue to support upward growth through the next several years."
Anglesey said it believed that it was now opportune to progress a number of steps to move the Parys Mountain project forward with the expectation that financing could be obtained and the project developed to production as soon as practicable.
It said the major steps to be taken in the short term would include: - Commencement of an Environmental Impact Assessment
- Conversion of the Scoping Study to a Definitive Feasibility Study
- Recruitment of key corporate staff
- Discussions with potential providers of project finance, including investment funds, metal traders, smelters and banks
The company said it had adequate funds to initiate these steps and continue its normal corporate and limited site operations but would need to raise some additional funding to complete these development targets.
It said that this would not likely involve significant dilution for current shareholders. It added: "Providing this timetable can be met and discussions on project financing are well advanced by the middle of next year, it would be possible for project construction to commence before the end of 2018 with initial production targeted for the first half of 2020."