Record Monthly Production and Trading Update (2723E)
29 May 2012 - 4:01PM
UK Regulatory
TIDMANGM
RNS Number : 2723E
Angel Mining PLC
29 May 2012
ANGEL MINING PLC
("Angel Mining" or the "Company")
AIM: ANGM
RECORD MONTHLY PRODUCTION AND TRADING UPDATE
The board of Angel Mining plc is pleased to announce a new
monthly production record as the total amount of dore poured in May
was 40.6kg (1,305oz). Due to our current gold price hedge of
$1,650/oz this equates to $2.15 million of sale proceeds. The total
comprised of gold dore pours of 19.3kg on 6(th) May, 13.135kg on
20(th) May and 8.112kg on 28(th) May. The new monthly record
provides further confidence to the board's belief that the mine
will soon attain it's intended commercial level of production, i.e.
in excess of 1,500 ounces of saleable gold per month. Future gold
pours are planned on a three weekly cycle, although this may vary,
from time to time, to ensure the most efficient use of elution
circuit and furnace.
Nalanuq
During May the Nalunaq mine has constructed a substantial new
tailings disposal area, which should last for the remaining life of
mine. A few days of production were adversely affected by the work
to close off the old tailings disposal area and to switch the
pipework and pumps to the new facility.
An application has been made to the Bureau of Minerals and
Petroleum for a permit to mine parts of the high grade pillars,
based upon a study undertaken by Golders Associates. Work has
commenced in the Mountain Block, where exceptionally high grade ore
samples have been found. The deposits in this area are found in
relatively small pockets and some limited underground diamond core
drilling is planned to determine the extent of these attractive
deposits. The management team are confident that the grade of ore,
that is now available to them, should enable them to consistently
hit their commercial production target of in excess of 1,500 ounces
each month, subject to reasonable plant availability.
A fault was discovered, running just above the gold bearing
quartz, in the South Block development and as a result the grade of
ore has deteriorated recently. The faulting appears to have
narrowed the target area and development in this area has been
suspended so that development efforts can be concentrated in the
Mountain Block where drilling has shown there to be significantly
higher grade ore available. Recent samples have indicated a gold
content in excess of 2,000 gpt but the extent of this particular
deposit is not yet known. Further consideration will be given to
the South Block geology and the Company is considering whether to
drill some exploration bore holes so as to learn more about the
recently discovered fault, which may have only marginally displaced
the targeted gold resource.
Black Angel
A full time project team has been formed to progress the Black
Angel project comprising a project manager, data management and IT
manager, a procurement manager and a part time technical
consultant. The financial model and feasibility study are being
thoroughly tested to optimise cash generation, while keeping the
capital expenditure budget as low as possible.
Nicholas Hall, CEO, commented: "The team has done well to
recover from the generator failure in March and plans are in hand
to transfer another large generator from Black Angel to improve the
standby facilities. The Board continues to explore financing
options for the Black Angel project and hopes to be able to provide
further updates later this summer."
Enquiries:
Angel Mining plc
Nicholas Hall, Chief Executive Officer 07931 709 053
Kevin McNair, Chief Financial Officer 07900 690 908
Fox-Davies Capital (Nominated Adviser
& Broker)
Daniel Fox-Davies
Simon Leathers 0203 463 5010
Bishopsgate Communications Limited
Nick Rome/Shabnam Bashir 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 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 reserves
(kt) (%) (%) (g/t) (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
==================== ========== ======= ---- ---- ------ -----------------
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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