Name of the Project
Parys Mountain copper/lead/zinc project.

Location
North Wales

Client
Anglesey Mining.

Project Description
A scoping study on the Parys Mountain project has reported positive results. 

The selected base case envisages a mining rate of 1 000 t/d to produce an average output of 14 000 t/y of zinc concentrate at 57% zinc, 7 200 t/y of lead concentrate at 52% lead and 4 000 t/y of copper concentrate at 25% copper, over an initial mine life of eight years.

The study is based on a surface decline to access the White Rock zone. The proposed decline will be developed by mining contractors and used as the initial means of access to the resource for development and mining.

Mined ore will be trucked up the decline to the proposed surface processing plant.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The base case yields a pretax net present value, at a 10% discount rate, of $33.2-million and an internal rate of return of 28.3%, with a payback of four years.

Value
The initial capital cost for mine development is estimated at $13-million and for the concentrator at $29.5-million, the dense-medium separation plant at $3-million and infrastructure at $10-million for a total of $53 million. A $4-million contingency provision is included.

Duration
Not stated.

Latest Developments
A division of Irish firm QME will undertake the design, engineering and optimisation studies for the future development of the Parys Mountain project.

Under a project development and cooperation agreement, QME Mining Technical Services will conduct an agreed programme of studies until the end of June next year, at no cost to the company.

Anglesey, however, has agreed to grant QME various rights and options relating to the future development of Parys Mountain, including exclusive contracts for the development of the decline and underground mine development. This involves rehabilitating the shaft. This will be done on terms to be agreed upon at a later stage.

Anglesey has also granted QME the right and option, upon completion of a prefeasibility study to undertake the mine development component of the project. This includes decline and related underground development and shaft development, with a scope to be agreed to the point of the start of production, in consideration of which QME will earn a 30% undivided joint venture interest in the project.

The agreement with QME is a major component of the recommendation by Mincon International and Fairport Engineering in their 2017 scoping study that further work be completed, including detailed mine planning and design, more engineering studies, additional metallurgical testwork and a review of tailings management and environmental and planning permissions.

QME will examine a revised mine model to incorporate some of the inferred resources, including part of the higher-grade Engine zone inferred resources, into the earlier years of the mine plan to bring forward cashflows and increase the life of the mine to at least ten years.

The initial scoping study was based on the initial development and production from the White Rock zone using a newly developed decline eventually leading to development of the deeper Engine zone and then the rehabilitation and use of the Morris Shaft as a hoisting facility. The QME review will examine whether different approaches to accessing the orebodies, particularly through early dewatering, rehabilitation and recommissioning of the Morris Shaft, could provide early access to the higher-grade Engine zone resources.

It is expected that these optimisation studies will be completed by mid-2019 and, subject to financing being available, will then form the basis for commissioning of a preliminary feasibility study to lead to an overall project financing package.

Key Contracts and Suppliers
Micon and Fairport Engineering (scoping study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Anglesey Mining, tel + 44 1407 831275 or email mail@angleseymining.co.uk.