Angel Mining PLC New mining permit received and production update (7903K)
August 28 2012 - 1:00AM
UK Regulatory
TIDMANGM
RNS Number : 7903K
Angel Mining PLC
28 August 2012
28 August 2012
ANGEL MINING PLC("Angel Mining" or the "Company", AIM: ANGM)
Nalunaq - new mining permit received and production update
The Board of Angel Mining is pleased to announce that it has
received the permit, from the Bureau of Minerals & Petroleum,
that enables the Company to mine the high grade pillars at the
Nalunaq gold mine in Southern Greenland.
The pillars are estimated to contain 30,000 tonnes of
recoverable ore at an expected average grade of 18 grams per tonne.
This high grade resource is expected to underpin the level of gold
production for the next year or more. Two mining teams are being
trained in the necessary mining method and rigorous health and
safety procedures required to mine the pillars and production from
this ore is expected to have commenced by mid-September.
Afterwards, the Company expects to be producing consistently above
1,500oz per month from a single gold pour, i.e. at commercial
levels of production given the Company's target of 2,000oz per
annum.
The permit has been granted later than the Company had expected
and the purchase of essential consumables was delayed as a result.
Consequently, the mine had to process low grade material in the
intervening period. Production for July was 29.3kg (942oz) and to
date in August it has been 17.6kg (565oz). The next gold pour is
planned for 27 August.
Work is also progressing well with the development in the
Mountain Block, where the Company is accessing ore with sample
grades consistently above 50 grams per tonne. A new ore pass is
being constructed to replace a 5km haul route to bring the ore to
the process plant.
The work on the pillars and the ore pass is being led by the
Nigel Handley who was recently appointed as Deputy General Manager
and Head of Mining. Golder Associates have advised on the mining
method and they will help the team monitor progress as the centre
portions of pillars are extracted. The pillars are typically 35
metres long and 5 metres wide. The ends of the pillars will be
reinforced with roof bolts in resin and the central portion, being
about 25 metres by 5 metres, will be blasted into the stope voids
on either side. The material will then be recovered from the stope
using high pressure water and a mechanical slusher, if needed.
Nick Hall, CEO of Angel Mining, commented: "I am delighted that
this permit has been issued after the most rigorous scrutiny by the
BMP and their professional advisers. This marks a major milestone
towards the attainment of our production targets and we look
forward to benefiting from the associated increased cash generation
this will bring."
Enquiries:
Angel Mining plc
Nicholas Hall, Chief Executive
Officer 07931 709 053
Kevin McNair, Chief Financial
Officer 07900 690 908
Fox-Davies Capital (Broker)
Daniel Fox-Davies/Simon Leathers 0203 463 5000
Bishopsgate Communications Limited
Nick Rome 0207 562 3350
Background to Angel Mining
Nalunaq
The Company first poured gold at Nalunaq on 27 May 2011
following final completion of the processing plant and is targeting
optimal production by Q1 2012 of approximately 24,000 oz per annum
thereby providing the Company with cash flow which will be
dedicated to funding development at Black Angel, further
exploration at Nalunaq and reducing debt. The current mining plan
anticipates a mine life of two to five years, subject to further
exploration work. The directors anticipate that Nalunaq may enter
into toll treatment arrangements with other potential gold mining
activities in the region where appropriate. Angel Mining currently
operates the only operational gold mine in the region and
anticipates that its operation may be suitable for processing ore
from other gold mining companies in the region in the future.
Black Angel
The Black Angel project is a high grade zinc/lead project based
around a previously developed mine in the north of Greenland. The
table below sets out the JORC Code compliant mineral resources
estimate for the Black Angel project which includes three sets of
zones within the mine and three satellite deposits which have been
explored.
Summary of Black Angel Mineral Resources (JORC) as of 31 December
2007
Category Tonnage Zinc Lead Silver Mineable
(kt) (%) (%) (g/t) reserves
(kt)
============= ========== ====== ===== ======= ===========
Angel Zone Indicated 791 13.0 4.5 25.0 218
============= ========== ====== ===== ======= ===========
Cover Zone Indicated 522 8.3 2.4 18.0 231
============= ========== ====== ===== ======= ===========
Other zones
within the
Black Angel
mine Indicated 697 10.4 3.3 13.0 -
============= ========== ====== ===== ======= ===========
South Lakes
Glacier Indicated 1,726 6.9 2.5 14.5 -
============= ========== ====== ===== ======= ===========
Ark Inferred 492 4.7 2.2 20.4 -
============= ========== ====== ===== ======= ===========
Nunngarut 2 Indicated 196 9.0 3.4 31.0 -
============= ========== ====== ===== ======= ===========
Nunngarut 2 Inferred 1 4.5 1.9 9.0 -
============= ========== ====== ===== ======= ===========
Total 4,425 449
========== ====== ===== ======= ===========
Source: Wardell Armstrong International Ltd.
The project consists of three phases:
Phase I: Complete the rehabilitation of infrastructure to allow
access to the mine, the mine camp and related facilities.
Phase II: Complete the detailed review of the pillar extraction
programme within the Angel and Cover Zones, including the
construction of the process plant and related systems to allow for
the shipment of concentrate from the site.
Phase III: Develop a further exploration programme for the
existing JORC resources at the Ark and Glacier deposits as well as
identified mineralization at Deep Ice, Nunngarut and a number of
other exploration targets within the license area (see the
announcements made by the Company on 6 June 2006 titled "Black
Angel 2006 Resource Statement" and on 30 November 2007 titled
"Black Angel 2007 Resource Statement").
Dr Bob Dowdell is the qualified person that has reviewed and
approved the technical information contained in this announcement.
Dr Dowdell holds a BSc and Doctorate in Mining Engineering from
Newcastle University and is a Chartered Engineer and Member of the
Institution of Mining and Metallurgy.
More information on the Company is available on the website,
please click here: http://www.angelmining.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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