Anglesey Mining Regulatory News (AYM)

30 Jul 2012 07:35

Anglesey Mining plc LSE:AYM30 July 2012

Parys 2012 drilling results

Anglesey Mining plc is pleased to report that it has now completed the diamonddrilling programme at Parys Mountain that was initiated in January 2012. Theprogramme consisted of 12 drill holes totalling almost 2,000 metres of coredrilling. Assay results have now been returned for the first ten of theseholes.

The programme was divided into three stages:

Upper Engine Zone

The first stage targeted the upper levels of the Engine Zone which comprised amajor portion of the resources identified at and below the bottom of the MorrisShaft. This part of the programme was designed to test the upward continuity ofthe Engine Zone through to surface. Each of the seven holes in this stageintersected the Zone and significant assays were recorded in the deepest twoholes. The remaining five holes all showed fairly narrow and relatively lowgrade intersections.

Details of the most significant intersections in this stage are shown in the following table:

------------------------------------------Intercepts------------------------------------------------

Hole Total From To Width Cu Pb Zn Ag Au Combined number Depth m m m % % % ppm ppm % CZ14 246 203.2 210.3 7.1 0.8 3.2 5.3 47 1.7 9.3 Including: 204.4 205.6 1.2 1.8 7.5 12.7 93 3.3 22.0 CZ15 236 171.2 175.0 3.8 2.1 4.6 8.0 141 0.6 14.7 Including: 171.7 173.0 1.3 4.8 10.9 18.5 153 0.5 34.2 CZ16 136 42.8 43.4 0.6 0.3 1.0 2.0 8 0.1 3.3 CZ17 79 48.4 48.9 0.5 0.4 0.0 0.0 0 0.1 0.4 CZ18 78 24.8 27.1 2.3 0.4 0.6 1.2 9 0.0 2.2 32.4 33.6 1.2 0.0 0.5 1.1 4 1.6 1.6 CZ19 25 12.4 14.5 2.1 0.1 0.4 1.0 6 0.0 1.5 CZ20 66 39.2 41.2 2.0 0.1 0.8 1.2 31 0.2 2.1 It is evident that the Engine Zone does persist upward from the originallyidentified location but does not appear to continue through to surface ateconomic grades and widths. These holes have now been added to the Engine Zonedrill data base and will form part of a JORC compliant resource estimate whichis currently in the course of production. This upward extension of the Engine Zone lies in relatively close proximity tothe White Rock Zone and could be mined from an underground decline inassociation with production from White Rock and would provide an importantbonus to the potential economics of an initial White Rock productionprogramme. These results are now being included as part of major update to theWhite Rock Scoping Study and the results are expected in the autumn.

Great Open Cast Area

The second stage of drilling comprised two holes on the edge of the old openpit to explore the potential of the Engine Zone horizon at the base of therhyolite succession, beneath the mineralisation hosted by the Central Shalesand which in some areas was mined historically in the Great Open Cast. If thisarea proves of interest it could eventually be reached via underground drivesfrom the Morris Shaft associated with potential development of the main EngineZone

Details of the major intersections in this stage are shown in the table below:

------------------------------------------Intercepts------------------------------------------------

Hole Total From To Width Cu Pb Zn Ag Au Combined number Depth m m m % % % ppm ppm % AMC20 282 72.2 77.4 5.2 1.8 0.5 1.0 7 0.1 3.3 Including: 72.2 74.6 2.4 2.9 1.0 2.2 14 0.1 6.1 AMC21 276 70.6 72.6 2.0 0.2 0.3 1.6 4 0.1 2.1

These results whilst not high grade do give an indication of some potential for this area and additional drilling associated with these structures may be planned for later in the year from the northern edge or bottom of the Great Open Cast.

New Pearl Engine House area

The final stage of the programme consisted of three holes drilled on theeastern boundary of the property to test areas of the Northern Copper Zone thathistorically were partially exploited in this area. AMC22 was drilled at 65degrees inclination, AMC23 at 75 degrees inclination and AMC24 was vertical,all from the same site. Assay results from the first of these holes have beenreceived and are shown in the following table. Results from the last two holesare expected in several weeks.

------------------------------------------Intercepts-----------------------------------------------

Hole Total From To Width Cu Pb Zn Ag Au Combined number Depth m m m % % % ppm ppm % AMC22 161 111.0 113.0 2.0 2.5 0.0 0.0 0 0.0 2.5 138.8 153.7 14.9 1.1 1.2 2.0 11 0.1 4.3 Including: 145.6 149.6 4.0 2.6 2.6 6.2 20 0.3 11.4 AMC23 185 No assay results to hand AMC24 212 No assay results to hand

These are very encouraging results and further work on this area will be considered when the final assay results are received.

Summary

All the stages of this programme are considered to have been successful.

Whilst it was a little disappointing that the Engine Zone could not beestablished at economic grades and widths at higher levels, nevertheless theresults in the first two holes did extend the potentially viable zone upwardsand will enable a combined White Rock - Upper Engine Zone mining operation tobe reviewed in a very positive light.

The work in the Great Open Cast was always somewhat speculative in nature but has provided an opportunity to develop additional resources that could be developed in conjunction with a production operation based on the Morris Shaft.

The Pearl area drilling is particularly encouraging as it opens up an area thatis more than one kilometre away from the Morris Shaft and in conjunction withprevious results from the Garth Daniel area which lie midway between the PearlEngine House and Morris Shaft locations demonstrates that mineralisation atpotentially economic grades and widths persists across the entire property.This can only generate further optimism and interest in the overall potentialfor Parys Mountain.About Anglesey Mining plcAnglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited whichis now producing iron ore from its James deposit, one of LIM's twenty directshipping iron ore deposits in western Labrador and north-eastern Quebec.Anglesey is also carrying out development and exploration work at its 100%owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there isestimated to be a total historical resource in excess of 7 million tonnes atover 9% combined copper, lead and zinc.For further information, please contact:Bill Hooley, Chief Executive +44 (0)1492 541981;Ian Cuthbertson, Finance Director +44 (0)1248 361333;Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)2076 344700;Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155