Trading Symbol
AIM: AYM
28th November 2022
Anglesey Mining
plc
(“Anglesey” or
“the Company”)
Northern Copper
Zone Internal Review Completed
Anglesey Mining plc (AIM:AYM), the UK minerals development
company, is pleased to provide the conclusions from an internal
review of the Northern Copper Zone at Parys Mountain, one of the
largest undeveloped copper deposits in the United Kingdom, and confirms the Northern Zone
as an exciting opportunity.
A PDF
version of this announcement with added graphics can be
viewed/downloaded from the Anglesey Mining website
(www.angleseymining.co.uk)
or by pasting the
following URL into any browser:
https://www.angleseymining.co.uk/wp-content/uploads/2022/11/AYM_RNS_NCZ-28Nov2022.pdf
- The Northern Copper Zone (NCZ) at Parys Mountain has an
Inferred resource estimate of 9.4Mt at 1.27% Cu, 0.38% Zn, 0.24%
Pb, 5g/t Ag and 0.1g/t Au. This resource estimate was completed in
2012 by Micon International and is based on a Net Smelter Return
cut-off of US$48/t.
- The NCZ was discovered in 1962. The deposit is interpreted as
the downdip extension of the historical open pit mined at Parys
Mountain and appears as a wedge-shaped block with the thin edge
(15m wide) starting around
200m below surface that extends down
to the thicker end (over 100m width)
at a depth of around 525m below
surface. It remains open both along strike to the east and at
depth.
- Our review of historical drilling and documents shows an
earlier internal resource estimate completed in July 1969 of 32.7Mt at 0.81% Cu (excluding other
metals), which should not be considered compliant with any modern
JORC or NI43-101 methodologies. Very few of the holes drilled
before 1980 were assayed for gold but it was recognised that the
NCZ contains gold with minor silver, zinc and lead.
- Preliminary metallurgical testwork completed in 1969 at
Lakefield in Ontario demonstrated recoveries of up to 93.3%
producing a copper concentrate grading 23.2% Cu
- The bulk of the mineralisation appears to be concentrated
around 13 holes over a 400m strike
extent. These holes range from 18m at
1.4% CuEq to 146m at 1.2% CuEq – the
average intersection across these holes is 77m at 1.0% CuEq
- Subsequent drilling in 1973-75 targeted the up-dip ‘thin’ edge
of the system meaning that down plunge and along strike areas of
potential extensions are yet to be tested
- Work programmes over the next 12-months are planned to include
drilling into the NCZ to confirm historical grades and continuity,
increase confidence in the resource, collect samples for
metallurgical testwork and conduct downhole geophysical surveying
to try and identify further zones of high-grade mineralisation
Jo Battershill, Chief
Executive of Anglesey Mining, commented: “Our internal
review of the Northern Copper Zone confirms our belief that there
remains substantial upside to the existing resource base and that
future optimisations of the mine design could potentially lead to
an extraction ratio greater than the projection within
in the 2021 Preliminary Economic Assessment of less than
50%.”
“Additional supporting documents show
that historical metallurgical testwork demonstrated significantly
better recoveries and concentrate grades than the Engine Zone
testwork results used in the PEA. Recoveries of over 93% were
achieved in the 1969 Northern Copper Zone testwork, which compares
to the 80% expected for Engine Zone. While the PEA flowsheet was
designed around a polymetallic deposit, the historical testwork
suggests future optimisations could potentially lead to higher
copper output from the Northern Copper Zone.”
“Under the PEA design, first mining
from the Northern Copper Zone would commence towards the end of
year 4, which provides sufficient time to infill drill the first
production areas immediately adjacent to the decline as it is
advanced into the White Rock & Engine Zones.”
“Therefore, we are looking to advance
additional work programmes at the Northern Copper Zone over the
course of the next 12-months. These programmes will include
drilling to confirm the historical grades and continuity, lift the
confidence to the Inferred resource, generate samples for
metallurgical testwork and provide a platform for downhole
geophysical surveying – with the aim of identifying additional
zones of high-grade mineralisation. Ultimately, this information
will feed into a resource update.
“We are currently working on the
resource update for the White Rock
and Engine Zone, which is expected to be complete over the next six
weeks.”
Northern Copper Zone – Mineral
Resource Estimate
The 2012 mineral resource estimate for the Northern Copper Zone
is provided below.
|
Resource |
Tonnes |
Cu |
Zn |
Pb |
Ag |
Au |
|
Category |
(Mt) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
Northern Copper
Zone |
Inferred |
9.38 |
1.27 |
0.38 |
0.24 |
5.0 |
0.1 |
|
Total |
9.38 |
1.27 |
0.38 |
0.24 |
5.0 |
0.1 |
The following assumptions were made for the 2012 Mineral
Resource Estimate:
- Net Smelter Return cut-off value of US$48/t
- Price deck of US$2.50/lb Cu,
US$1.25/lb Zn, US$1.00/lb Pb, US$17.50/oz Ag and US$1275/oz Au
- Costs of US$39.06/t for mining,
processing and G&A
- Payability of 72%
Northern Copper Zone – Historical
Significant Intersections
The following table outlines the significant broad intersections
that have historically been drilled into the Northern Copper
Zone.
Hole ID |
Intersection (m) |
Grade
(% CuEq)1 |
From
Depth (m) |
Period Drilled |
AMC19 |
13.6 |
2.4 |
313.4 |
2004 –
2008 |
A51 |
32.7 |
1.7 |
397.7 |
1981 |
Including |
12.9 |
3.0 |
417.5 |
|
H30 |
80.9 |
1.5 |
297.6 |
1968 –
1970 |
Including |
17.3 |
2.1 |
314.3 |
|
Including |
15.5 |
4.6 |
377.0 |
|
A152 |
18.0 |
1.4 |
277.4 |
1973 –
1975 |
H342 |
146.3 |
1.2 |
349.9 |
1968 –
1970 |
Including |
22.9 |
1.5 |
349.9 |
|
Including |
21.3 |
2.3 |
430.7 |
|
H312 |
50.9 |
1.2 |
398.7 |
1968 –
1970 |
H31A2 |
63.0 |
1.0 |
392.6 |
1968 –
1970 |
Including |
14.3 |
2.0 |
435.3 |
|
AMC16 |
45.5 |
1.0 |
283.5 |
2004 –
2008 |
H17A2 |
91.4 |
0.9 |
373.7 |
1968 –
1970 |
Including |
16.8 |
1.5 |
443.8 |
|
M1C2 |
86.0 |
0.9 |
365.5 |
1962 |
H462 |
87.9 |
0.8 |
496.5 |
1968 –
1970 |
Including |
30.8 |
1.0 |
515.4 |
|
1 Equivalent grades based on pre-recovered grades and
using following prices – Cu US$3.50/lb, Zn US$1.20/lb, Pb US$1.00/lb, Ag US$22.50/oz and Au US$1750/oz.
2 Not assayed for gold
Competent Person
The information in this announcement which relates to an
internal Anglesey review of the historical metallurgical testwork
at the Northern Copper Zone has been approved by Mrs. Liz de Klerk, M.Sc., Pr.Sci.Nat., MIMMM who is a
professional registered with the South African Council for Natural
Scientific Professionals (SACNASP) and independent consultant to
the Company. Mrs. de Klerk is the Senior Geologist & Managing
Director of Micon International Co Limited and has over 20
continuous years of exploration and mining experience in a variety
of mineral deposit styles. Mrs. de Klerk has sufficient experience
which is relevant to the style of exploration, mineralisation and
type of deposit under consideration and to the activity which she
is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the "Australasian Code for reporting of Exploration
Results, Exploration Targets, Mineral Resources and Ore Reserves"
(JORC Code). Mrs. de Klerk consents to inclusion in the
announcement of the matters based on this information in the form
and context in which it appears.
About Anglesey Mining plc
Anglesey Mining is traded on the AIM market of the London Stock
Exchange and currently has 280,675,721 ordinary shares on
issue.
Anglesey is developing its 100% owned Parys Mountain
Cu-Zn-Pb-Ag-Au 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 a 20% interest in the Grangesberg Iron project in
Sweden, together with management
rights and a right of first refusal to increase its interest to
70.2%. Anglesey also holds 12% of Labrador Iron Mines
Holdings Limited, which through its 52% owned subsidiaries, is
engaged in the exploration and development of direct shipping iron
ore deposits in Labrador and
Quebec.
For further information, please
contact:
Anglesey Mining plc
Jo Battershill, Chief Executive –
Tel: +44 (0)7540 366000
John Kearney, Chairman – Tel: +1
416 362 6686
Davy
Nominated Adviser & Joint
Corporate Broker
Brian Garrahy / Lauren O’Sullivan
– Tel: +353 1 679 6363
WH Ireland
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666
Canaccord Genuity Limited
Joint Corporate Broker
James Asensio / Harry Rees – Tel: +44 (0) 20 7523 8000
Scout Advisory Limited
Investor Relations Consultant
Sean Wade – Tel: +44 (0) 7464
609025
LEI: 213800X8BO8EK2B4HQ71