THIS IS AN ADVERTISING PROMOTION
The Anglesey Mining story is no doubt familiar to many investors in the UK. The Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit, located on the isle of Anglesey in North Wales, has been the key focus for the company on-and-off since the company was incorporated in 1984. A post-GFC move into the Canadian iron ore sector saw the Parys Mountain project once again become overlooked.
However, the appointment of a new CEO, Jo Battershill, in August 2021 has seen the Parys Mountain project come back to the fore.
The existing global resource base of almost 17 million tonnes, across three main deposits, with grades of 1.0% Cu, 1.5% Zn, 0.8% Pb, 17g/t (grammes per tonne) Ag and 0.2g/t (grammes per tonne) Au remains open both at depth and along strike.
This resource fed into an updated PEA released in January 2021 that demonstrated a financially robust development opportunity for a 12-year mine producing up to 16 kilotonnes a year of copper equivalent at very competitive operating costs and from a pre-production capital estimate of only $99 million.
Why so cheap? An abundance of infrastructure. The project has a shaft that was sunk down to 300 metres below surface in 1990 along with a 1,000 metres of underground development, there is road immediately adjacent to the mine site that will enable concentrate to be trucked to the port of Holyhead 21 miles to the south west and the mine site already has an electrical substation connected to the local grid. For many potential mining projects around the world, this infrastructure advantage is what dreams are made of.
LOW CARBON COPPER
However, it is on the topic of power that Parys Mountain could benefit even further in the eyes of modern investors. One of the largest industries on the isle of Anglesey is now renewable energy and when you stand atop Parys Mountain, local wind farms can be seen in all directions. Tapping into this plentiful source of renewable energy could result in Parys Mountain producing some of lowest carbon copper concentrate in the world.
Next steps for Parys Mountain
A drill rig was mobilised to site at the end of November to complete a 3,000m programme of infill drilling targeting an upgrade of the remaining Inferred resources into Indicated at the White Rock deposit. The programme will also collect some additional metallurgical samples from the high-grade Engine Zone and geotechnical samples to enable further mine design optimisation.
The company expects this data to feed into a Feasibility Study in 2022.
PERMITTING WELL ADVANCED
On the permitting front, the company still retains the original planning permission that was granted back in 1988 - another clear advantage over other potential development projects around the world. Management is working closely with the North Wales Minerals and Waste Planning Service and local councils to ensure any permissions are bought up to modern standards via a voluntary review.
Running concurrently with the Feasibility Study, the company will compile the historical environmental studies completed at Parys Mountain and determine whether there are any aspects that need to be redone or modified. Protecting the historic workings, listed buildings and SSSI’s at the Parys and Mona mines will be of key importance to Anglesey Mining. The site has enormous heritage value, and the company sees itself as an integral part of that heritage.
As for what might still be found at Parys Mountain, there are several opportunities to extend the known mineralisation, particularly along strike and at depth in the Norther Copper Zone where there have been some world class intersections drilled over the years.
OPTION VALUE FROM IRON ORE ASSETS
While the focus is clearly on Parys Mountain, the company still retains some significant leverage to the iron ore sector. A 12% equity stake in Labrador Iron Mines Holdings Limited (LBRMF.OTC) provides exposure to that company’s Houston development opportunity, which has a PEA outlining a 12-year life and NPV8 of C$109m.
Anglesey Mining also owns a 20% stake in Grängesberg Iron AB in Sweden, with a right of first refusal to increase its stake to 71%. The Grängesberg mine produced 180Mt of high-grade iron ore concentrate and pellets until its closure in 1989. With 148Mt of resources still insitu, a 2012 Pre-Feasibility Study is now being updated by the company. The original PFS demonstrated strong financial returns from a development with reserves of 82Mt supporting a 5.3Mtpa underground mine producing 2.5Mtpa of concentrate grading c.70% Fe.
Ultimately, in a world where electrification of the economy is paramount - alongside reducing the overall carbon footprint of industry - Anglesey Mining is incredibly well positioned with its current asset base.
DISCLAIMER: This article was written by Anglesey Mining and published by Shares under a commercial agreement. It is not a recommendation to buy or sell the shares. The article originally appeared in Shares’ Spotlight report on 23 December 2021.
