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Anglesey Mining White Rock Prospects
Anglesey Mining aims to start mining operations this year at White Rock on its Parys Mountain Mine on Anglesey, North Wales. The company announced ambitious plans following an encouraging scoping study by Micon International Co. Ltd (Micon). This comes after the JORC resource estimate by Micon on this zone earlier in 2007.
The scoping study shows that White Rock can be a viable project in its own right, with a positive cash flow.
Furthermore, such a solid platform could then facilitate development of the other area offering promise, namely the Engine Zone.
Micon’s study suggests there is enough “mineable resource” to allow production here for at least five years at 500 tonnes per day.
And there would be further opportunities at this location if Anglesey Mining undertook a programme of underground drilling.
Estimates for total capital investment required for the mine plant, to make access, carry out studies and engineering work, to develop site infrastructure and a predicted extraction of 500 tonnes per day is £15 million ($30 million).
Anglesey Mining Executive Director, Bill Hooley said: “We are very pleased that the respected international consultant Micon concurs with us on the viability of White Rock and its role in developing the wider Parys Mountain resource base.” The company sees White Rock as the first stage in a wider mining project, which should see production at Anglesey for a number of years. Mr Hooley aims for mining to start in 2007 and new milling operations will follow in 2008. Micon’s scoping study estimates mineable resource of 870,000 tonnes. This is based on a cut-off grade of 3.3% zinc equivalent above 280 m at White Rock. The JORC indicated resource was 1.18 million tonnes at 0.38% copper, 2.47% lead, 4.68% zinc, 41 g/t silver and 0.38 g/t gold. Micon also inspected the analysis on the White Rock material, and formed a putative flow diagram for copper, lead and zinc concentrates. Anglesey Mining assumes that part of the £15 million capital required for infrastructure can be met by a grant from the Welsh Assembly Government. The estimated operating costs of £30.25 per tonne, include £12 per tonne for mining and £16.30 per tonne for processing. Interestingly, the company has made a revenue forecast based on mineable resources, using metal prices based on a weighted average of 80% of current prices. With world metal prices likely to remain high in the medium term, the 20% discount provides some prudent cover for short term pull back in prices. So long as the emerging economies, particularly India and China, continue to make huge leaps forward in infrastructure development, the demand for base metals will remain high, and likely always be ahead of supply. Against such a relatively benign background for world metal prices, Anglesey Mining should be sanguine about securing the required capital investment to begin development at White Rock.
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