Black Angel Bankable Feasibility Study & Mining Licence Application
12/02/2008
Press Release
Angus & Ross PLC (AGU) (“Angus & Ross” or
the “Company”) is pleased to announce that Wardell-Armstrong International (WAI) has completed the Bankable Feasibility Study (BFS) based on pillar extraction from the Black Angel and Cover Zones. The report covers the first three years of mining operations and indicates a post tax internal rate of return of 43% based on zinc and lead prices both averaging $2,500 per tonne throughout the forecast period.
- Wardell Armstrong International has completed a Bankable Feasibility Study confirming the financial viability of the Black Angel mine at current market prices for zinc and lead;
- Bureau of Minerals and Petroleum of Greenland (BMP) expects to provide a mining licence to Black Angel Mining A/S towards the end of April 2008;
- The company is on schedule to commence production at Black Angel during 2008;
- Frank Chapman appointed as a non-executive Director.
The study does not include additional mineable reserves, including approximately 200,000 tonnes at Nunngarut, (for which a further mining licence application is being prepared), and other significant reserves identified by the exploration programme undertaken in the last two years.
The BFS was presented to the Greenlandic Bureau of Mines and Petroleum (“BMP”) on 6th February as part of the application for a mining licence for the Black Angel and Cover zones. The BMP has announced that it is its intention to process the mining licence by the end of April 2008, assuming that there are no major technical or political objections.
The BFS is based on a mine plan which uses a well proven technique for supporting key pillars with cement bonded backfill. The final version of the mine plan was completed by Golders Inc., the specialist Canadian consultants, in mid January, this has caused a small delay in the finalisation of the BFS against our earlier timetable target. However, the mine plan now envisages that the pillars will be mined selectively, which the board believes should defer the need for pre-concentration facilities until 2010.
Angus & Ross is now recruiting an experienced mining team as well as making the final selection of plant and equipment needed to refurbish the mine and commence production in 2008. Production of saleable high grade ore should total approximately 220,000 tonnes per annum, representing the practical limitation of the carrying capacity of the cable car.
Following the winter shut-down, a new permit application is being made to the BMP to allow construction of the cable car to recommence as soon as possible. It is expected that the cable car will be fully operational during September 2008.
Board Changes
Francis (Frank) David Sherston Chapman aged 57 has joined the board as a non-executive director, with immediate effect. He is CEO, a director and a major shareholder of London Capital Group Holdings Limited (an AIM listed financial services company) which he brought to the market in December 2005. Frank has worked on the floor of the London Metal Exchange and has been involved in metal trading and the derivative markets for most of his career, holding directorships at Baring Securities, Morgan Grenfell and Amerex Petroleum amongst others. Frank has worked with oil and mining companies and government bodies over many years assisting with their hedging requirements and can bring this vital area of expertise to the A & R team.
Frank also currently holds 390,000 ordinary shares in the Company.
There is no further information to be disclosed pursuant to paragraph 2 (g) of Schedule 2 of the AIM Rules.
Richard Burt and Malcolm Swallow are retiring from the board but will continue to support the company in the capacity of technical consultants.
Robin Andrews, Chairman
of Angus & Ross,
commented: “The completion of the BFS and the submission of the application for the Black Angel mining licence is a major step forward for Angus & Ross. The BFS shows that the first phase of the Black Angel mine project is profitable at today’s metal prices. Having access to the mine via the cable car will allow several alternative mining plans to be considered for the second phase of the project as well as facilitating further exploration from within the mine.”
- Ends -
Angus & Ross
plc
Robin Andrews (Chairman) +44-1751 430 988
Nick Hall (Chief Executive) +44-7931 709 053
Andrew Zemek
(COO of Angus & Ross, CEO of Black Angel Mining) +44-7850-755 450
Bishopsgate Communicatons
Nick Rome +44-20-7562 3366
Fox-Davies Capital
Oliver Stansfield +44-20-7936 5220
Nick Hail +44-20-7936 5230
Landsbanki Securities(UK) Limited
Fred Walsh and Sebastian Jones +44-20-7426 9000
NB: This release has been approved by the Company's technical staff in accordance with the recent Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outlines standards of disclosure for mineral projects.
These include Dr Robert Dowdell a Mining Engineer and formerly a mine superintendent of the Black Angel Mine who obtained his Doctorate in Rock Mechanics from University of Newcastle-upon-Tyne. Dr Dowdell serves on the board of Black Angel Ltd a wholly owned subsidiary of Angus & Ross plc.
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