Drilling Report - Success with White Rock Drilling

    Anglesey Mining plc

5 September 2006                                             LSE: AYM
                                        
Success with White Rock Drilling at Parys Mountain
                                        
  *    Seven Holes completed on White Rock Zone
  *    Confirms original resource estimate grades
  *    Extends White Rock Zone to surface
  *    Drilling commenced on Upper Engine Zone

Anglesey Mining plc is pleased to report that the first seven holes have now
been completed in the 2006 drilling programme of the White Rock Zone adjacent to
the Morris Shaft at its Parys Mountain project in North Wales.  The assay
results from the first four of these holes confirm the continuation of the zone
through to surface.  In addition a hole has been drilled into the Upper Engine
Zone also adjacent to the Morris Shaft to establish upward continuity.

This White Rock programme is designed to test the near surface potential of the
zone to assist with bringing forward the start of production.  The programme on
the Upper Engine Zone will further add to this aim.

White Rock

The White Rock Zone was originally identified during the underground development
programme in 1990.  A large part of the zone was located near the 280
metre level driven from the Morris Shaft and the current drilling programme was
designed to test the upward continuity of this zone towards the surface.  The
indicated resource estimate on the White Rock Zone calculated in 1990 was:

 840,000 tonnes at 0.49% Cu, 3.44% Pb, 6.84% Zn, 42ppm Ag, and 0.45ppm Au.

Holes WD1 to WD6 were located on a hillside on roughly the same elevation and
inclined at 60 degrees to the vertical to test the White Rock Zone at a depth of
approximately 50 metres.  WD7 was also inclined at 60 degrees but was collared
lower on the hill than the previous holes to test the zone at around 100 metres
deep.  Holes WD1 and WD7 were each drilled to 120 metres deep to intersect the
complete geological sequence whilst the remaining holes were each drilled to
approximately 65 metres deep to test the mineralised horizons (see plan on 
the company's website www.angleseymining.co.uk). 

The Company has recently received assay results from the first four holes and
these are summarised below:

                 Width   Cu     Pb     Zn    Ag     Au
                  (m)   (%)    (%)    (%)   (ppm)  (ppm)
    WD1           6.3   0.51   3.83   7.03   40    0.75
    40.1m - 47.5m
    including     1.8   1.24  10.69  19.20   83    1.83

    WD2           5.0   0.15   1.08   2.10   25    0.31
    44.0m - 49.0m

    WD3          24.4   0.16   1.02   2.18   39    0.70
    25.1m - 49.5m
    including     3.0   0.22   1.58   3.51   82    1.32
    
    WD4          24.0   0.54   4.19   6.90   51    0.55
    26.4m - 50.4m
    including     8.5   0.63   5.78  10.02   59    0.49
    and           3.5   1.13   7.31  10.85   108   0.48

These assays compare favourably with the 1990 estimate of White Rock resources
and indicate that the zone is likely to continue from below the 280 metre level
through to surface.  The high grade intercepts in the adjacent holes WD1 and WD4
suggest that a high value core may exist in the zone surrounded by a lower grade
halo.  Such a configuration would be amenable to low cost bulk mining methods in
this area.

Holes WD5 and WD7 have also been sent for assay and results are expected
shortly.  Hole WD6 did not intersect mineralised material and this hole
therefore defines the southern limit of the zone at this elevation.  Visual
examination of both WD5 and WD7 show mineralisation over extensive intercepts
perhaps of a similar nature to WD2.

Hole WD2, with its relatively lower grade, probably indicates the northern
extremity of the zone.  The distance between WD3 and WD5 is approximately 100
metres and could represent the potential strike length of the mineable zone at
this elevation.  This compares favourably with the zone on the 280 metre level.

"The extended mineralised widths encountered within this White Rock drilling
programme which contain potentially economic ore grades coupled with the
apparent high-grade core to the White Rock Zone, and with the continuation or
even extension of the strike length of the zone over that observed on the 280
metre level bode well for the development of a sustainable underground mining
programme commencing close to surface and proceeding down to and below the 280
metre level" said Bill Hooley, Executive Director of Anglesey Mining.  "In
addition, the location of the extension of the Engine Zone at a higher
elevation, if further continuity can be established, will add to the economic
benefits of commencing underground production from the mine decline in this
vicinity.  We look forward to receiving the ongoing geological and assay results
from both these zones and incorporating these into a viable mining and
processing programme"

Future White Rock Drilling

To prove the lateral extent of the zone, it is planned that further holes will
be drilled on the elevation of WD7 at that elevation.  It is expected that a
further series of holes will then be drilled to investigate the zone
approximately 50 metres deeper to tie in with the previous underground drilling.
When this programme is complete it is hoped that significant additional tonnage
will be added to the resource and in sufficient detail to enable planning for
the initial stopes in the underground mining programme to be completed.

Mining Potential

Both the White Rock Zone and the Upper Engine Zone above the 280 metre level
that are being drilled with the holes discussed here, are located close to the
mine's planned decline portal site.  The Company has planning permission for use
of this decline and excavation work on the portal was commenced in 1991.
Initial discussions have been held with contractors to recommence this decline
development.  The current drilling programme on the White Rock Zone is being
carried out at sufficiently close spacing to enable the initial mining stopes in
this area to be laid out with confidence.  Production from these stopes using
trackless methods trucking through the decline will involve relatively low
levels of capital expenditure coupled with low operating costs.  The completion
of the next phases of this White Rock drilling programme will enable such a plan
to be drawn up speedily.

Engine Zone

The majority of the known resources of the Engine Zone which hold the larger
part of the Parys Mountain indicated resources are located below the 280 metre
level of the Morris Shaft.  The upward extension of the Engine Zone between the
280 metre level and surface was not clearly understood.  The Company has
therefore commenced a short programme to test this vertical continuation.  The
first of these holes, CZ10 has been drilled vertically to 220 metres deep and
has intersected the Engine Zone at around 200 metres.  These intersections have
been sent for assay and results are awaited.  This success has encouraged the
drilling of CZ11 which will commence in the next few days and is expected to
intersect the Engine Zone at around 150 metres deep.

About Anglesey Mining

Anglesey Mining plc is a UK based Company established in 1984 and is listed on
the London Stock Exchange.  In addition to the Parys Mountain copper-zinc-lead
project the Company is working to establish the Labrador Iron Mines Project in
Canada.  This is a unique opportunity to re-establish some major iron ore mines
previously operated by the Iron Ore Company of Canada and is based on 100
million tonnes of hematite iron ore.  This will involve a direct shipping
partially developed project which will produce lump ore and sinter fines with a
short time to production and relatively low capital expenditure requirements.

For further details:

Ian Cuthbertson, Finance Director           + (44) 1248 361333
Bill Hooley, Executive Director             + (44) 1492 541981
John F. Kearney, Chairman                   + (1) 416 362 6686
Cathy Malins / Annabel Leather,
Parkgreen Communications                    + (44) 20 7493 3713

ends
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024