Trading Symbol
LSE: AYM
9 December
2021
Anglesey Mining
plc
(“Anglesey” or
“the Company”)
Grängesberg Iron
Ore Pre-Feasibility Study Commenced
Anglesey Mining plc (LSE:AYM), the UK minerals development
company, is pleased to provide the following update on the
Grängesberg Iron Ore Project in Sweden.
Highlights
- Anglesey recently engaged Micon International to undertake an
update on the 2012 Pre-Feasibility Study (PFS) to investigate the
re-opening of the Grängesberg Iron Ore Project
- During the life of the original operation, Grängesberg produced
180Mt of iron ore. Prior to closure in 1989, when the iron ore
price was trading around US$30/t, the
Grängesberg mine was the third largest iron ore mine in
Sweden and employed over 1,500
people.
- The Swedish Mining Inspectorate granted a mining for the
project concession in 2013, which is valid for a minimum of 25
years.
- The current work programme is intended to provide an update on
the PFS completed in 2012, which demonstrated an extremely robust
development option based on the following parameters:
- Annual production of 5.3Mtpa of ore, producing 2.5Mtpa of
>68% Fe concentrate, with a mine life of 16-years
- Probable reserves of 84Mt at 37.2% Fe derived from 148Mt of Indicated and Inferred resources
Jo Battershill, Chief
Executive of Anglesey Mining, commented: “The Grängesberg
mine provides significant exposure to iron ore for Anglesey Mining.
The project has all the attributes of a globally significant iron
ore deposit. It has a large resource, the ability to produce a
high-grade iron ore concentrate and is situated adjacent to
existing rail infrastructure with a direct link to the port of
Oxelösund on the Baltic Sea.
The worldwide movement towards
decarbonisation is resulting in manufacturers seeking to minimise
their carbon footprint. The production of a >68% Fe concentrate
in Europe will afford local
steelmakers the opportunity to shorten their supply chains and
lower overall emissions. The commissioning of the HYBRIT fossil
fuel free steel plant in Sweden
already demonstrates the huge progress being made with regard to
‘green steel’ in the European region. Additionally, we note with
interest the recent media reports suggesting the new Prime Minister
of Sweden sees the need for more
mines in the country.
There are a number of companies
listed on the London, Toronto and Nordic exchanges with directly
comparable projects that clearly demonstrate the potential upside
to Anglesey Mining shareholders. The completion of the updated PFS
will be an important step towards unlocking the value of this
deposit. We very much look forward to sharing the results of this
study with the market in the new year.”
Grängesberg Iron Ore Project – Updated
Pre-Feasibility Study
Anglesey owns a 20% stake in the Grängesberg Iron Ore Project,
located 230km northwest of Stockholm in Sweden. The Company has recently appointed
Micon International to commence an update of the original PFS for
Grängesberg, completed in 2012. The results of the updated PFS will
be important in guiding the Anglesey Board in the options to bring
the Grangesberg Mine to production and on its Right of First
Refusal over an additional 50.1% of the project.
The Grängesberg project is a substantial iron ore asset located
in a very favourable jurisdiction and, prior to its closure in
1989, the mine produced around 180Mt of iron ore. Remaining
resources were estimated at 148Mt at
41.3% Fe in an NI 43-101 Technical Report completed by Roscoe
Postle Associates Inc in 2014.
|
Resource |
Tonnes |
Fe |
|
Category |
(Mt) |
(%) |
Grängesberg |
Indicated |
115.2 |
40.2 |
|
Inferred |
33.1 |
45.1 |
|
Total |
148.3 |
41.3 |
Diamond drilling has confirmed that the mineralisation at
Grängesberg remains of mineable widths at a depth of 1,200m below surface. Historical geophysical work
suggests the orebody may be open down to a depth of 1,700m.
The Pre-Feasibility Study completed in 2012 demonstrated a
probable reserve of 84Mt, which at a proposed mining rate of
5.3Mtpa, generated a mine life of more than 16-years. Historical
production demonstrated that beneficiation of the ore produces a
very high-grade concentrate (>68% Fe).
About Anglesey Mining plc
Anglesey Mining is listed on the London Stock Exchange and
currently has 248,070,732 ordinary shares on issue.
Anglesey is developing its 100% owned Parys Mountain
copper-zinc-lead deposit in North
Wales, UK with a 2020 reported resource of 5.2 million
tonnes at 4.3% combined base metals in the Indicated category and
11.7 million tonnes at 2.8% combined base metals in the Inferred
category.
Anglesey holds an almost 20% interest, 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:
Jo Battershill, Chief Executive +44
(0)7540 366000
John Kearney, Chairman + 1 416
362 6686
LEI: 213800X8BO8EK2B4HQ71