Interim Management Statement
02 Septembre 2008 - 8:00AM
UK Regulatory
Anglesey Mining plc LSE:AYM
2 September 2008
Interim Management Statement for the period to 27 August 2008
Activities at the group's major project, the development of iron ore mining in
Labrador, Canada near the town of Schefferville, have been significantly
increased during the period since April 2008. Based on the company's current
plans this project is fully funded through to first production in 2009 and
development activities are proceeding rapidly in all areas - geology,
metallurgy, processing, transportation, negotiations and involvement with First
Nations and product marketing.
At Parys Mountain in Anglesey, North Wales, an offer to purchase and develop the
Parys properties was received from Western Metals Limited of Perth Western
Australia in April 2008. Since that time Western has been carrying out due
diligence and negotiations on a definitive agreement between the companies have
continued. As at the date of this report no formal agreement has been signed.
Shareholder approval will be required for this transaction.
Labrador Iron
Further significant progress has been made with the development of the Labrador
iron project and its move towards first production of direct shipping lump and
sinter fines iron ore, scheduled for 2009.
The team required to drive the project forward has been recruited and during the
summer has carried out a number major tasks including the mining and crushing of
an 8,000 tonne bulk sample; the commencement of an confirmatory drilling
programme on a number of deposits with the aim that compliant resource estimates
will be produced on several of these during 2008; the commencement of
engineering work to support this resource estimate and to prepare the plans and
specifications required for first production including detailed metallurgical
testwork to determine the most efficient process route to be utilised; detailed
discussions with railroad and port operators to put in place an integrated
transport facility for the iron ore; continuation of environmental baseline
studies in conjunction with the project approval process and work on marketing
the iron ore products.
On 24 July 2008 the company and the Innu Nation of Labrador announced that they
had signed an Impact Benefit Agreement (IBA) committing to an ongoing
relationship between the Innu Nation and Labrador Iron Mines Limited. The
agreement was signed following the earlier execution of a Memorandum of
Understanding between the parties.
The IBA is a life of mine agreement that establishes the processes and sharing
of benefits that will ensure an ongoing positive relationship between Labrador
Iron Mines and the Innu Nation. In return for their consent for and support of
the Labrador Iron Mines project, the Innu Nation and their members will benefit
through training, employment, business opportunities and financial participation
in the project. This is a significant step in the development of the project
which would not have been possible without this agreement. Discussions with
other First Nations groups continue.
The Schefferville project, managed by the group's 50% owned associate, TSX-
listed Labrador Iron Mines Holdings Limited, is making good progress towards its
target of achieving commercial production of iron ore from the properties by
2009.
Parys Mountain
Work on site has been cut back during the period of Western Metal's due
diligence and reductions in the price of zinc have adversely affected the
economics of the company's proposed White Rock development. In July 2008 the
company was granted a consent to discharge water from its Morris Shaft, an
essential step in the re-starting of mining operations.
The results of the most recent White Rock drilling programme which was completed
earlier in the year are as follows:
Hole # From To Width m Cu% Pb% Zn% Ag ppm Au ppm
WD10 21.2 53.8 32.6 0.91 5.44 9.67 77.0 1.04
Includes 21.2 30.2 9.0 1.27 8.14 15.29 130.0 2.68
WD11 119.0 145.7 26.7 0.50 2.59 5.02 36.6 0.92
Includes 119.0 132.7 13.7 0.78 3.98 7.49 44.3 1.00
Includes 127.3 132.7 5.4 0.66 5.51 10.46 68.5 1.97
WD12 50.9 55.0 4.1 0.76 1.76 3.87 99 0.26
and 58.2 183.7 125.5 0.10 0.74 1.52 16 0.25
Includes 126.2 153.7 27.5 0.18 1.64 2.81 21 0.27
WD13 157.3 188.4 31.2 0.20 1.42 2.32 12 0.19
Includes 169.5 185.0 15.5 0.33 2.26 3.45 15 0.20
These results should be read with caution as the drill-hole intersections were
not normal to the dip of the White Rock Zone and the indicated widths in the
table above will be larger than the true zone width. This is particularly true
for WD 10 which was drilled vertically down the zone and was intended to collect
samples for metallurgical testing purposes.
Financial
The group's 50% owned Labrador operations were funded by the Canadian IPO in
December 2007 and January 2008 and are expected to proceed towards production
without any further recourse to shareholders. Within the next few months the
group will require further funds for its ongoing management, administration and
Parys maintenance expenses. The group has no revenues.
Outlook
The iron ore market is robust and is forecast to remain strong. The group
believes that it is well placed to take advantage of this strength as it brings
the Labrador iron project into production in 2009.
The outlook for base metals is less certain, the price of zinc having fallen
significantly since its 2007 peak thereby affecting the group's own plans for
the next stage of Parys Mountain. In contrast, copper prices have remained
historically high, and more than half of the value of the Parys Mountain
deposits is in copper, generally at deeper levels than the zinc which is found
near-surface particularly in the White Rock area.
About Anglesey Mining
Anglesey Mining plc is a UK based company listed on the London Stock Exchange
(LSE:AYM) with 100% ownership of the Parys Mountain polymetallic base metal
project in North Wales, and a 50% interest in Labrador Iron Mines Holdings
Limited (TSX:LIR) which manages the Schefferville iron ore project in Labrador,
Canada.
For further information:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director +(44) 1248 361333
mail@angleseymining.co.uk www.angleseymining.co.u
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juil 2024 à Août 2024
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Août 2023 à Août 2024