ANGUS & ROSS
plc
(AIM:AGU.L)
BLACK ANGEL FEASIBILITY STUDY, MINING LICENCE
APPLICATION and BOARD CHANGES
- Wardell
Armstrong International (WAI) has completed a Bankable Feasibility Study
(?BFS?) confirming the financial viability of the Black Angel mine at
current market prices for zinc and lead
- 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
Angus
& Ross plc (?Angus & Ross? or the ?Company?) is pleased to announce
that WAI has completed the 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. �
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.?
Enquiries:
Angus & Ross plc
Robin
Andrews, Chairman
Nick Hall, Chief Executive
Andrew Zemek, Chief Executive, Black Angel Mining Ltd
Fox-Davies
Capital
Oliver Stansfield
Nick Hail
Bishopsgate
Communications Limited
Nick Rome
Landsbanki
Securities (UK) Limited
Fred Walsh
Sebastian Jones
|
01751 430 988
07931 709 053
07850 755 450
0207 936 5220
0207 936 5230
0207 562 3366
0207 426 9000
0207 426 9000
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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.