ANGLESEY MINING PLC: Projects update; LIM releases year end financials
Anglesey Mining plc
2 July 2014 LSE:AYM
Projects update; LIM releases year end financials
Anglesey Mining plc ("Anglesey") which is concentrating its activities in the
base and bulk minerals sectors is pleased to provide the following updates on
its major areas of minerals interest in three different countries.
Micon International Limited is now close to completing a detailed review of the
mineral potential of the entire Parys Mountain property in North Wales. This
review will cover both those resources on which Micon has previously provided
JORC compliant indicated and inferred resource estimates as well as studying a
number of other deposits and locations within the property that were not
included in those estimates.
The report, which is due within a month, will enable Anglesey to better plan
its development strategy for Parys Mountain to ensure that the sizing of future
operations is commensurate with the entire mineral potential and will not
require expensive additions and compromises once operations begin.
The board continues to review the status of base metals markets and in
importantly the zinc market to ensure that the commencement of production at
Parys Mountain coincides as closely as possible with the expected resurgence in
demand for base metals concentrates particularly in the European environment.
There are now positive signs that the long expected future shortfall in zinc
concentrate supply related to major mine planned closures is coming closer to
Anglesey completed its contractual arrangements over the Grangesberg iron ore
mine in Sweden in late May and since then the board of Grangesberg Iron AB
("GIAB") on which Anglesey holds three out of five board seats has been
actively pursuing the restart of development activities at Grangesberg. These
activities had been largely suspended for a number of months during the period
in which GIAB was undergoing corporate reconstruction and refinancing.
Two major activities are now being progressed that together will enable GIAB
and Anglesey to progress the development plan for the reopening of the
Grangesberg mine. The first is a review of the resources at the property and it
is expected that this will enable a resource estimate to be able to be made
under the NI 43-101 standard. Such a compliant resource will ensure that future
financing of project can proceed smoothly. The consultant to carry out this
work has been selected and it is expected that a report on this estimate will
be delivered to GIAB in August.
The second activity will 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, which 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, has been nominated
and is preparing specifications for the selection of contractors. It is
expected that all the drilling and analysis will be completed during the autumn
and will allow the first stage of permit applications to be prepared and
A number of other commercial and marketing studies will commence as soon as the
Swedish summer holiday season is over.
On June 12th the Swedish government rejected an appeal against the grant of the
mining concession to GIAB. As a result this 25 year mining concession is now in
full force and effect.
Labrador Iron Mines Holdings Ltd ("LIM") in which Anglesey holds a 15% interest
today released its Financial Statements and Management Discussion and Analysis.
Key points are:
LIM completed its third operating season in December 2013 and achieved sales of
approximately 1.7 million wet tonnes of iron ore and recognized net revenue of
$85.9 million for fiscal 2014.
LIM's sales were achieved at the expense of product quality, which impacted
revenues and resulted in a net loss reported for of $C105.2 million including a
depletion and depreciation charge of $C33.6 million.
LIM entered into a joint venture with Tata Steel Minerals Canada for the
exploration and development of LIM's Howse deposit by selling a 51% interest in
Howse for $C30 million.
LIM completed its 2013 exploration programme of over 12,000 m of diamond and
reverse circulation drilling.
The focus of LIM's 2014 activities will be the development of the Houston Mine
and, subject to completion of financing, plans to be in a position to begin
production from Houston in 2015.
The full Financial Statements and MD&A can be found on Sedar.
About Anglesey Mining plc
Anglesey is 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
In May 2014 Anglesey acquired the rights to earn a 57% interest in the
Grangesberg iron ore mine in central Sweden which had prior indications that at
least 115 million tonnes or iron ore at 40% Fe remain for exploitation in the
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
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Danesh Varma, Finance Director +44 (0)207 653 9881;
Samantha Harrison: RFC Ambrian +44 (0)20 3440 6800
-0- Jul/02/2014 14:38 GMT
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