|Update on Parys Mountain Optimisation Study|
Anglesey Mining plc (“AYM”) is pleased to report on progress of the Optimisation Study being carried out on its Parys Mountain copper, zinc, lead, gold and silver project, located on the island of Anglesey in North Wales.
The Optimisation Study is being conducted under a Project Development and Cooperation Agreement entered into with QME Mine Engineering Services (“QME”) which is based in Navan, County Meath, Ireland. 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 Parys Mountain as detailed in the AYM RNS of 26th November 2018.
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 Parys Mountain earlier this month.
QME is examining a number of development scenarios for Parys Mountain which include the initial development of the mine from a new decline, with first production from the White Rock Zone, and alternatively initial development through refurbishing the existing Morris Shaft, with early production from the higher value though deeper Engine Zone. A number of sub-alternatives are also being considered.
Anglesey Chief Executive, Bill Hooley, said: "I am very pleased with the progress that QME has made in the short period since work commenced on this project in November. I am also greatly encouraged by the high-quality team that has been assembled and particularly by the enthusiasm and vigour with which each member of that team is approaching the production of an optimised and viable development plan. I believe that the final output from this Optimisation Study will do much to enhance the value and development of Parys Mountain.”
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 Ireland and elsewhere. As its understanding of the requirements for development and production at Parys Mountain 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 Engine Zone. 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 June 2019 and this target still appears to be quite achievable.
Parys Mountain - 2017 Scoping Study
In July 2017 a new Scoping Study on the Parys Mountain, was prepared by Micon International Limited and Fairport Engineering Ltd. 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.
QME Limited, based in Navan, County Meath, Ireland, 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, Dalradian Gold Limited at Curraghinalt Northern Ireland, and Lafarge Holcim at Glensanda Scotland.
About Anglesey Mining plc
Anglesey is carrying out feasibility and development work at its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales, UK 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 Sweden, 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 Labrador and Quebec.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)7785 572517
Danesh Varma, Finance Director +44 (0)7740 932766