Anglesey Mining plc said that a pre-feasibility study (PFS) had started at its iron ore project in Grängesberg, Sweden.
HISTORY
The company holds an almost 20% interest and management rights to the project, together with a right of first refusal to increase its interest by a further 50.1%.
During the life of the original operation, Grängesberg produced 180Mt of iron ore.
Prior to closure in 1989, Grängesberg was the third largest iron ore mine in Sweden and employed more than 1,500 people.
In 2013 the Swedish Mining Inspectorate granted a mining concession valid for a minimum of 25 years.
PFS
The company recently engaged Micon International to undertake a revised study on the 2012 PFS to investigate the re-opening of the project.
Anglesey said that the 2012 PFS demonstrated an “extremely robust development option” based on the:
– 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
| Resource | Tonnes | Fe | |
| Category | (Mt) | (%) | |
| Grängesberg | Indicated | 115.2 | 40.2 |
| Inferred | 33.1 | 45.1 | |
| Total | 148.3 | 41.3 |
VALUE
Chief executive Jo Battershill added that Grängesberg had 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 completion of the updated PFS will be an important step towards unlocking the value of this deposit.”