Anglesey Mining plc
29 September 2014 LSE:AYM
Grangesberg NI 43-101 Resource Estimate
Anglesey Mining plc ("Anglesey") is pleased to report that Grangesberg Iron AB
("GIAB") has received an NI 43-101 Technical Report from Roscoe Postle
Associates Inc ("RPA") showing a compliant resource estimate for the
Grangesberg Mine.
In May 2014 Anglesey announced that it had entered into agreements giving it
the right to acquire a controlling interest in the Grangesberg Iron project in
central Sweden including a direct 6% interest in GIAB and an option exercisable
until 30th June 2015 to acquire an additional 51% in GIAB. Anglesey also
entered into shareholder and cooperation agreements such that during the term
of the option Anglesey holds management control and operatorship of GIAB and
has appointed three out of five directors to the board of GIAB including the
Chairman.
The Technical Report which was prepared by RPA and was dated 26th September
contains the following summary table:
Mineral Resource Estimate Summary - August 22, 2014
Grängesberg Iron AB - Grängesberg Iron Mine
Category Tonnes %Fe %P Contained Fe
(tonnes)
Indicated 115,200,000 40.2 0.78 46,300,000
Inferred 33,100,000 45.2 0.91 15,000,000
Notes:
CIM definitions were followed for Mineral Resources.
The values for tonnages, grades and contained iron have been rounded.
Mineral Resources are estimated at a cut-off grade of approximately 20% Fe.
A minimum mining width of approximately 10 m was used.
RPA concluded that the Grängesberg iron ore deposit hosts a significant iron
resource that has excellent potential for expansion at depth. Geophysical
interpretations from the 1960s suggest that the ore body continues to at least
1,700 m below surface. Diamond drill holes confirm the mineralization continues
to at least 1,100 m to 1,200 m below surface. In RPA's opinion, more
geotechnical, metallurgical, and other engineering studies are warranted to
advance this Project.
"We are very pleased with the compliant resource estimate contained within the
RPA report", said Bill Hooley, Chief Executive of Anglesey, "This confirms our
belief in the inherent fundamentals of Grangesberg and we look forward to
moving the project through the next development stages with a target of
restarting production around 2018 when we believe that the global iron ore
supply-demand will be in a more balanced position than currently. We remain
encouraged by the support being shown for the project at all levels in Sweden."
A programme is currently being developed to look closely at geo-mechanical and
hydro-geological aspects of the site which will be critical components of the
permitting regime required for the dewatering and reopening of the mine. The
principal consultant who will oversee this work has commenced activities;
drilling quotations have been obtained; and permit applications for the
necessary work have been submitted to the relevant authorities. These
activities will include drilling boreholes into the general mine area and the
capture and interpretation of key data on the physical aspects of the ground
and hydrological conditions. It is expected that all the drilling and analysis
will be completed during the autumn and will allow the first stage of permit
applications for mine development to be prepared and submitted.
The full RPA report can be found at https://app.box.com/GIABreportSep14 and will also be published shortly on the Anglesey website at www.angleseymining.co.uk
The Annual General Meeting of Anglesey will be held at 11am on Tuesday 30th
September at the offices of DLA Piper, 1 London Wall EC2Y 5EA, London.
Shareholders are invited to attend.
About Anglesey Mining plc
Anglesey is also carrying out exploration and development work at its 100%
owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC
Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated
category and 4.1mt at 5.0% combined in the inferred category was published in
November 2012. The Company has received a detailed review of the resource base
for the entire site which has recently been completed by Micon International
and is evaluating these results. The company continues to review the future
demand predictions for base metal concentrates particularly zinc ahead of any
decision to move to development and production.
In May 2014 Anglesey acquired the rights to earn a 57% interest in the
Grangesberg iron ore mine. The Grangesberg iron ore mine is situated in the
mineral-rich Bergslagen district of central Sweden about 200 kilometres
north-west of Stockholm. Until its closure in 1989 due to prevailing market
conditions, the Grangesberg mine was the third largest iron ore mine in Sweden,
with in excess of 150 million tonnes of iron ore having been mined down to
around 500 metres deep.
Anglesey holds 15.3% of the shares of Labrador Iron Mines Holdings Limited
which over the three years 2011 to 2013 produced about 3.5 million tonnes of
iron ore from its operations in Canada, all of which was sold in the China spot
market.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 6539881;
Samantha Harrison: RFC Ambrian
+44 (0)20 3440 6800;