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

Location
North Wales.

Client
Anglesey Mining.

Project Description
A scoping study 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
Anglesey Mining has noted progress of the optimisation study being undertaken on its Parys Mountain project.

The optimisation study is being conducted under a project development and cooperation agreement entered into with Ireland’s QME Mine Engineering Services (QME), which is  conducting the study at its own expense in return for which Anglesey has agreed to grant QME various rights and options pertaining to the future development of Parys Mountain.

QME has assembled a team of qualified and experienced geologists and engineers specifically for this project. The QME team has conducted two workshops with Anglesey since the project started in late November, including a site visit to Parys Mountain earlier this month.

QME is examining a number of development scenarios for Parys Mountain, which include the initial development of the mine from a new decline, with first production from the White Rock zone, and alternatively initial development through refurbishing the existing Morris shaft, with early production from the higher-value, though deeper, Engine zone.  A number of subalternatives are also being considered.

To fully evaluate these alternatives QME has conducted a detailed validation and review of the wire-frame models of the various orebodies and zones that will form part of the new production plans.

QME has also examined the classifications of resources previously used and currently believes that it will be possible to increase the tonnages available for production when these reviews are combined with updated costing models.

Work will continue on the wire-frame review and is expected to lead to the development of alternative mine production plans in the coming weeks.

As QME’s understanding of the requirements for development and production at Parys Mountain has evolved since November, it has started the compilation of a detailed cost database to be used in examining each of the alternative scenarios.

This will ensure that the comparative financial models to be produced for each option will be consistent and current.

It is expected that the compilation of this database will be completed to tie in with the completion of the alternative mine production plans as noted above.

The next major piece of work for QME, which follows directly from the site visit earlier this month, will be the development of plans to reopen and use the 300-m-deep Morris shaft as a potential early access option to the higher value Engine zone. It is believed that this shaft, though currently flooded to near surface, is in reasonable condition and could be dewatered and rehabilitated relatively easily.

In addition to the shaft itself, QME has examined the headframe and winder on site and will consider if and how best this existing equipment can be used for the shaft reopening exercise.

Development of the logistics and costing of this possible approach will be incorporated into the various alternative models as information becomes available.

The original completion date of June 2019 for the optimisation study is considered as still achievable.

In July 2017, a scoping study on the Parys Mountain was prepared by Micon International and Fairport Engineering.

The QME optimisation study will build on the results of the scoping study, which will be used as a base case for comparison purposes, and it is hoped and expected that the study will result in a development plan that increases the mine life beyond the eight years and provide improved financial results.

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