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.
About
QME
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