Anglesey Mining PLC Update on Parys Mountain Optimisation Study

 
TIDMAYM 
 
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 
 
 
 
END
(END) Dow Jones Newswires
January 22, 2019 02:00 ET (07:00 GMT)
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