Anglesey Mining Regulatory News (AYM)

11 Jan 2012 07:00

Anglesey Mining plc LSE:AYM

11 January 2012

Diamond drilling recommences at Parys Mountain

* Initial stage of four holes * Potentially a further six to eight holes depending on the initial results * Target is shallow extensions of the Engine zone close to the existing Morris Shaft * Results expected to contribute to a review of the mining and production options * Commercial options to enhance shareholder value will also be reviewed

Anglesey Mining plc is pleased to announce that it has recommenced diamond drilling at Parys Mountain in a programme designed to identify the extent of near surface locations of the Engine Zone mineralisation.

Parys Mountain which is 100% owned by Anglesey is a copper-zinc-lead project with historical resources currently in excess of 7 million tonnes at over 9% combined metal.

As previously announced on 2 December 2011 an Induced Polarisation (IP) geophysical survey and an associated Deep Overburden (DOB) geochemical survey were conducted during December. The results of these surveys have now been received and analysed and have provided good guidance for the location of holes for the on-going drilling programme.

The first hole in the initial stage of drilling has now commenced and is progressing satisfactorily. This hole has a target depth of 220 to 250 metres. The initial stage will consist of four holes totalling in excess of 800 metres of drilling and is expected to be completed in five to six weeks. Subject to results obtained from these first holes it is planned to drill a further six to eight holes for an additional 1,200 metres of drilling. These second stage shallower holes are likely to be located between the current holes and the target area identified from the IP and DOB surveys.

The drilling is targeting the potential sub-outcrop location of the Engine Zone mineralisation which has been shown to be a major resource bearing structure around the bottom of the Morris Shaft at some 300 to 400 metres below surface. Previous exploration particularly during the last drilling programme at Parys Mountain in 2007 and 2008 traced the Engine Zone upwards to a depth of about 200 metres.

Providing the existence of the Engine Zone at these shallower depths can be defined in sufficient size and continuity it could enhance the development of the nearby White Rock zone as a relatively small decline based mining operation. Planning permissions for such an operation and for an associated processing plant remain in place.

As the results from the current phase of drilling are received a review of the mining and production options available for the White Rock and potential shallow Engine Zone resources will be carried out. This review will be designed to identify the optimum mining and processing routes available and to generate capital and operating cost estimates at a preliminary feasibility study level.

Additionally a broader review of the overall potential of the Parys Mountain area will be conducted and in conjunction with White Rock/shallow Engine Zone study will consider the various commercial options available to enhance the value of Parys Mountain for shareholders.

Subject to satisfactory and timely completion of both phases of the current drilling programme and receipt of analytical data it is expected that both these reviews will be completed during the second quarter of 2012.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing holds a 33% interest in Labrador Iron Mines and owns 100% of Parys Mountain in North Wales where there is an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information:Bill Hooley, Chief Executive 01492 541981Ian Cuthbertson, Finance director 01248 361333Ambrian Partners, Samantha Harrison/Klara Kaczmarek 020 7634 4700Tavistock Communications, Emily Fenton/Jos Simson 020 7920 3155