Anglesey Mining has appointed Micon International Ltd to conduct a preliminary economic assessment (PEA) on its base and precious metals project at Parys Mountain in Anglesey, North Wales.
OPTIMISATION STUDIES
Micon began its work on the copper-zinc-lead-gold-silver project at Parys Mountain in 2006.
This has included preparation of the JORC compliant resource estimate in 2012 and the scoping study in 2017.
The PEA follows optimisation studies recently completed by QME Mining Technical Services (QME) and takes Anglesey Mining a step closer to production.
QME highlighted up to 10 million tonnes (Mt) of potentially mineable material at Parys Mountain which is greater than the 2.1Mt of indicated resource utilised in Micon’s 2017 scoping study.
“QME also identified that it should be possible to utilise a lower cut-off grade for mine planning purposes than used in the Micon 2017 study,” said Anglesey Mining in a statement.
“As a result of the QME work it is expected that the planned production rate of 1,000 tonnes per day utilised in 2017 will be expanded, and that the projected mine life of just eight years will be significantly extended.”
EVALUATIONS
In preparing the PEA, Micon will review all the QME work including capital and operating cost estimates, ore-body modelling and mine production planning.
Micon will also evaluate several separate development scenarios based on the ore zones available for mining and on differing production rates to optimise the assets at Parys Mountain.
Results will be incorporated into detailed production and financial models to produce comprehensive and compliant reports.
The PEA is expected to be finalised by the end of November, after which Anglesey Mining intends to undertake a preliminary feasibility study to support financing for development of the mine.
EXPECTATIONS
Anglesey Mining chief executive Bill Hooley said that the QME optimisation work had provided a sound basis on which to complete the PEA.
“We are confident that the results from the PEA will confirm our expectation in the extent of the mineral resources at Parys Mountain, and will demonstrate improved outcomes and a longer mine life beyond those indicated previously.”
PORTFOLIO
Anglesey Mining plc owns 100% of the Parys Mountain project, a 10% interest and management rights to the Grangesberg iron project in Sweden, together with a right of first refusal to increase its interest by a further 50.1%.
The company also owns 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in Labrador and Quebec, and is also reviewing other base metal projects.