22nd Jan 2019 14:39
LONDON (Alliance News) - Anglesey Mining PLC on Tuesday said completion of the optimisation study for its Parys Mountain project in Wales by the end of June is "quite achievable".
Shares in the miner were up 17% at 3.04 pence on Tuesday.
Irish-based firm QME Mine Engineering Services is conducting the optimisation study of Parys Mountain - a copper, zinc, lead, gold and silver project on the island of Anglesey - at its own expense.
In exchange for undertaking the study, QME will receive "various rights and options" which relate to the project's future development.
As such, QME has assembled a team to perform the study and is examining numerous scenarios, some of which focuses on refurbishment of the existing workings.
It present, QME expects that increasing the tonnages available for production at Parys Mountain and is working on plans to reopen and use the existing deep Morris Shaft - currently flooded to near surface - and the other existing equipment.
It was previously expected that the whole optimisation study would be done by the end of June and this "still appears to be quite achievable" according to Anglesey Mining .
A July 2017 scoping study of the project predicted a mining rate of 1,000 tonnes a day for an average annual output of 14,000 tonnes of zine concentrate at 57% zinc.
The July study also forecast annual lead production at 7,200 tonnes of lead concentrate at 52% lead and 4,000 tonne of copper concentrate at 25% copper.
These results indicated a mine life of eight years but it is hoped that QME's study will produce a development plan that increases the mine life past eight years and would produce "improved financial results".
"I am very pleased with the progress that QME has made in the short period since work commenced on this project in November," said Anglesey Mining Chief Executive Bill Hooley.
"I believe that the final output from this optimisation study will do much to enhance the value and development of Parys Mountain," Hooley added.
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