Anglesey Mining plc has granted Quarry and Mining Equipment Ltd (QME) rights and the option, on completion of a prefeasibility study, to fund the mine development of the base and precious metals project on Parys Mountain, Anglesey.
The company is also looking at various financing options to make progress with the project which was incorporated in September 1984.
FINANCES
In the company’s annual report and operational review published this week, Anglesey said that Micon International Ltd‘s preliminary economic assessment (PEA) had indicated a pre-production capital expenditure of $99 million [£71m].
Chief executive Bill Hooley, who steps down from the role on 1 August, added that the company’s directors had looked at financing options including debt: equity; joint venture; or other arrangements.
In the debt: equity scenario, Anglesey would need to source some $70m in debt and $30m of equity.
The group reported that at the end of March 2021 it held cash of £892,000.
“As part of this process, the detailed results from the PEA have been made available on a limited and confidential basis to a number of entities who have shown interest in Parys Mountain,” he added.
“These entities are well aware of the potential upside from the ongoing movement in commodity prices, and of the security offered by a project based in the United Kingdom with planning permissions in place.”
Anglesey also needs to conduct additional work to further de-risk the project along with a feasibility study to improve financing opportunities for the project.
MINE DEVELOPMENT
The mine development component of the Parys Mountain project would include decline and related underground development and shaft development, with a scope to be agreed to the point of start of production.
Based on the development and co-operation agreement with Anglesey Mining, QME would earn a 30% undivided joint venture interest in the Parys Mountain project.
PLANS
Micon’s PEA recommended further technical and trade-off studies to determine the best overall mining schedules, metallurgical flowsheet and infrastructure design to optimise the project.
These should lead to improved economics to be included in a feasibility study and improve the overall financial capability of the project.
Preparatory work before commissioning a feasibility report would include a surface diamond drilling programme and collection of drill core samples for metallurgical testing and process testing.
LICENCES
Anglesey has planning permission to build a mine at the site but needs environmental operating licences.
These require further environmental base-line data to include in a formal feasibility report and as a pre-requisite before the start of operations.
“Development of a new mine at Parys Mountain, producing copper, zinc and lead, and with gold and silver credits, can deliver economic growth in the UK, regional jobs for the community and business opportunities for local service providers,” added Mr Hooley.
“Hardly any of these critical and strategic metals, essential for reduction in our carbon footprint and transition to a green economy, are currently produced in the UK, leaving the country entirely dependent on imports.
“This creates a unique and timely opportunity, both for Anglesey Mining and for the UK, to develop a new, modern mine at Parys Mountain in an environmentally sustainable manner.”