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Anglesey recently reported the assay results for the third drill hole completed at its' Parys Mountain project. Drilling has confirmed the continuity and scale of the Northern Copper Zone (NCZ) which we believe is likely to contribute significant volumes of high-grade ore to mine plans in on-going feasibility studies. Surging metal prices and increased volumes will, we believe, contribute to significantly enhanced project economics once feasibility studies are reported.
Anglesey Mining plc
The Parys Mountain VMS deposit was first mined centuries ago and was the largest copper mine in Europe during the mid-1700s. Last commercial production was recorded in 1910, however, as Anglesey advances the deeper resources of the project through feasibility studies there is an increasing sense that Parys Mountain has much more to give. We look today at why we feel Parys Mountain is misunderstood and underappreciated. Drilling is currently concentrating on the Northern Copper Zone (NCZ), though discovered in the 1970s the NCZ has not been properly explored. The NCZ perhaps hosts a large copper resource in its own right and could give operating flexibility to any operation at Parys Mountain (a theme we will return to once the current drilling programme is finished). The Parys Mountain project forms a large part (5.4p/sh) of our fair value of 11.2p/sh, and we feel this is a conservative valuation (full details in our research note issued 08.11.2022) given the geological understanding, resource development and potential, available infrastructure and underground access - including a 300m production shaft.
Anglesey today reports the first assay results generated from the drill programme at its polymetallic Parys Mountain project in Anglesey, Wales. Results from drill hole NCZ001 include; from the Garth Daniel Zone - 22m grading 2.3% copper, 2.8% zinc, 1.3% lead, 5g/t silver, and 0.03 g/t gold from a depth of 559m (copper equivalent 3.7%), and from the Northern Copper Zone – 63m grading 0.6% copper and minor zinc, lead silver and gold from depth of 362m (copper equivalent 0.7%).
WH Ireland visited Anglesey's 100% held Parys Mountain project in Anglesey in early December; we reviewed the historical mine site and infrastructure, visited the active drill-rig, reviewed drill core, and discussed aspects of the project with the professionals at site.
This morning Anglesey Mining provides details of metallurgical test work carried out on a 340kg mixed parcel of White rock and Engine mineralisation – these being the mix of zones expected in the first few years of production at its Parys Mountain zinc-lead-copper VMS deposit in North Wales. The material tested a head grade of 0.4% copper, 3.6% zinc, 3.1% lead, 49g/t silver and 0.7% gold (7.5% zinc equivalent on a base metal-only basis)
Anglesey yesterday reported that a drill rig has arrived at Parys Mountain ahead of a planned drill programme that will target multiple mineralised zones.
Anglesey has announced that it expects to begin drilling at its polymetallic Parys Mountain project on 11th September. The six-hole programme (3,725m of diamond core drilling) has been designed to increase the resource confidence category for the upper levels of the Northern Copper Zone (NCZ), extend the high-grade Garth Daniel resource estimate and test the Central Zone, which is not currently in the Parys Mountain resource estimate.
Anglesey Mining has a portfolio of advanced projects in safe jurisdictions. The Grängesberg iron ore and the polymetallic Parys Mountain projects have mining pedigree and benefit from established infrastructure that significantly boosts project economics and sets Anglesey's projects apart from many of its peers. Today's update comes after the recent announcement by Nordic Iron Ore AB (Nordic) (12.07.2023) after securing an offtake agreement and significant conditional funding commitment with Cargill, a major iron ore trader. Under the terms of the agreement Cargill commits to buy 25Mt of high-grade iron ore concentrate from the Blötberget mine in Sweden, Nordic estimate that this will generate SEK35bn (~$4.4bn) in revenue over 15 years. Further conditional commitments have been made whereby Cargill would invest up to $23m to part-fund the construction of Blötberget. When combined with the announcement from Grängesberg Exploration Holdings AB in March (8.03.2023), where Anglo American committed to a US$10m payment to secure the life-of-mine offtake (a relatively small 1Mtpa over 11-yrs), this news shows us there is significant interest in European iron ore projects. Anglesey's Grängesberg Iron project hosts one of the largest iron ore deposits in Europe and was previously the second largest iron ore mine in Sweden.
Anglesey is advancing a mixed portfolio of projects in safe jurisdictions with economic studies indicating positive economics. The Parys Mountain polymetallic project in Anglesey has a long history of mining and benefits from established infrastructure including a mine shaft providing access to mineralisation. Anglesey today reports plans to drill the NCZ which will improve the confidence in the known copper resource (tonnage and grade), and, in our opinion, allow for proper planning for construction with the expected highest returns. We continue to see fair value in Anglesey at 11.2p/sh.
As reported on Tuesday (May 6th), Anglesey has secured £1m (gross) in equity funding that it will use to advance, grow, and de-risk the Parys Mountain and Grängesberg projects. The polymetallic Parys Mountain project is an historical mine with significant infrastructure and scope for a brownfield expansion of resources with Anglesey looking to bring the whole of the Northern Copper Zone (>1% copper) into the resource and mine plan. Grängesberg also benefits from established infrastructure, and in production could supply low-carbon smelters in Europe with high-grade iron ore for the production of green steel - Anglesey looks to continue with baseline studies. We continue to see fair value at 11.2p per share but see current work plans as value-enhancing.
Yesterday Anglesey reported an updated mineral resource estimate (MRE) for its 100% held Parys Mountain project in Anglesey, Wales. The polymetallic MRE incorporates an updated and refined geological model for the White Rock and Engine Zone, and includes for the first time, 10 drill holes completed in 2022. The updated MRE stands at 16Mt grading 1.9% copper equivalent considering copper, lead, zinc, silver and gold (Table 1). Several of the resource zones are open and warrant further exploration and drilling with a view to increasing the resource further.
Anglesey reported yesterday that it is investigating the concept for a pumped hydro-energy storage project at the Company's 49.8% owned Grängesberg mine in Sweden after the proposed mining operation ceases.
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Expected mid-February 2023. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet*** Anglesey Mining 2.0p £5.6m (AYM.L) The UK minerals development company announces that, further to the announcement on 12 January 2023 regarding the agreement to acquire an additional 29.8% of Grangesberg Iron, the entity that owns the Grangesberg Iron Ore Project in Sweden, the acquisition has now completed and Anglesey will issue 14,544,827 new ordinary shares at an issue price of 3 pence per share to Roslagen Resources. Following the issue of the consideration shares, Roslagen now holds approximately 4.9% of the issued share capital of Anglesey. Edenville Energy 8.625p £2.4m (EDL.L) As previously announced the Company has agreed terms to supply 2,000 tonnes of washed coal per month, at a now agreed pre-transport price of US$98 per tonne at the mine gate. The Company has committed to supply 2,000 tonnes per month from June 2023. Prior to this date contract supply volumes under this agreement are subject to variation based on production figures at Rukwa given the ongoing rainy season. It is expected the net price achieved will be approximately US$55 per tonne. Discussions regarding the previously announced sale of 1,500 tonnes per month of fines remain ongoing. Fusion Antibodies 47.5p £12.4m (FAB.L) The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announces its launch of Mammalian Display for high volume mammalian cell surface expression and screening of antibodies. The service is particularly suited to companies specialising in the identification of therapeutic antibodies from focussed libraries of sequences, such as would be required by those entities using artificial intelligence or machine learning. The service covers each stage of pre-clinical antibody development. A fully integrated end-to-end service from therapeutic target nomination and discovery through to stable cell line development in readiness for GMP production is also available. Galileo Resources 1.2p £13.9m (GLR.L) The exploration and development mining company announces the results of an initial Inferred Mineral Resource Estimate for the Luansobe copper project in Zambia. Galileo holds a 75% interest in the Project. Inferred Mineral Resources reported in accordance with the JORC code 2012 edition, including approx. 5.8m tonnes gross at 1% total Cu above a cut-off grade of 0.25% total Cu for 56,000 tonnes of contained Cu, potentially amenable to open pit mining and approximately 6.3m tonnes gross at 1.5% total Cu above a cut-off grade of 1% total Cu for 97,000 tonnes of contained Cu, potentially amenable to underground mining. Tendering for mining contractors can commence once an optimised block model is available as part of general Project planning work. Journeo 133.5p £21.7m (JNEO.L) The supplier of information systems, software and services to transport operators and local authorities, provides a trading update for the year ended 31 December 2022: revenue up by 35% to £21.1m (2021: £15.6m) and profit in line with market expectations. Order intake for the year increased by 50% to £27m (2021: £18m), providing good earnings visibility for the current financial year. On 18 January 2023, the Group completed the acquisition of IGL Limited (including Infotec Limited) following the completion of a significantly over-subscribed placing and retail offer. The Infotec acquisition brought across an US$18m contract to provide displays for New York subway trains. Horizonte Minerals 153p £410.7m (HZM.L) The Company announces that it has entered into a five-year mining services agreement, thereby securing services for mining, stock pile generation, plant feeding and slag handling activities for its 100%-owned Araguaia Nickel Project in Brazil, where construction is underway and first production remains on track to commence in Q1-2024. The contract has been awarded to Fagundes Construco e Mineraco, a Brazilian company with a strong track record of providing mining services in Para State. Logistics Development Group 14.5p £81.5m (LDG.L) The UK-based logistics and supply chain company announced that further to its notification on 1 December 2022 regarding a loan of EUR 18.5m to Synsion TopCo, a private holding company of the Synsion Group, formed by DBAY Advisors Limited, the Company's investment manager, specifically to invest in the pan-European digital business SQLI S.A. (ENXTPA:SQI). The investment has been utilised by the Synsion Group to acquire an additional stake in SQLI at EUR44.25 per share and has increased the Synsion Group's holding in SQLI by 9% to 81.3%. LDG's loan of EUR18.5m to Synsion Topco is being converted into an approx. 11.1% equity interest in Synsion Topco. Malvern International 15.5p £3.8m (MLVN.L) The global learning and skills development partner provides a trading update. The unaudited revenue for the year ended 31 December 2022 has increased 170% to circa £6.5m (FY21: £2.4m). Loss before tax will be significantly reduced at circa £1.1m (FY21: £1.6m, pre-adjustment for Singapore disposal). Unaudited net debt as at 31 December was 4.4m (FY21: £5.8m) including lease liabilities of £3.1m. Management expect revenue in 1H23 to be significantly ahead of H122, with a combination of pre-booked income from the University Pathway courses. The Board is increasingly confident for Malvern's prospects and expects it achieve growth in all divisions in 2023. Record Plc 93.6p £186.3m (REC.L) The specialist currency and asset manager is hosting a Capital Markets Teach-In today. The company reiterates its medium-term financial targets: revenue of at least £60m for the year ending 31 March 2025 (FY25), growth of operating margin to approximately 40% by FY25, maintenance of ordinary dividend target payout ratio in the 70%-90% range and develop opportunities to outperform through performance fees. Redx Pharma 49p £164.1m (REDX.L) The clinical-stage biotechnology company focused on discovering and developing novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic disease, provides a update on lead fibrosis candidate RXC007. RXC007 is an oral, selective Rho Associated Coiled-Coil Containing Protein Kinase 2 (ROCK2) inhibitor currently a Phase 2a study in idiopathic pulmonary fibrosis (IPF). Following the announcement on 11 October 2022 of first patient enrolment in the trial, regulatory and ethics approvals for both the 28-day and the 12-week cohorts have been received in five countries across Europe, and recruitment is progressing at a number of study sites. Based on the current patient recruitment rate, topline data from this Phase 2a study are expected to be available in Q1 2024. If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Chef: Emily Liu 0203 764 2344 emily.liu@hybridan.com Chef: Sacha Morris 0203 764 2345 sacha.morris@hybridan.com
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Anglesey announces that its transaction to acquire an additional 29.8% in the large Grängesberg iron project in Sweden has completed. Anglesey will issue 14.5m shares at an issue price of 3p to Roslagen Resources. The shares are held in escrow for 12 months.
Anglesey is advancing quality mixed commodity projects with significant mineral resources in safe jurisdictions. Economic studies indicate positive economics across the portfolio. The Grängesberg iron ore and polymetallic Parys Mountain projects have mining pedigree and benefit from established infrastructure that significantly boosts project economics and sets these Anglesey projects apart from many of its peers. We see fair value at 11.2p/sh based on a SOTP valuation (initiation note 8.11.2022) using conservative assumptions and see clear value upside vs current market appreciation. We expect news flow from Anglesey this year to further demonstrate the real value it has in its portfolio.
Today we publish a Morning Comment providing further context around yesterday's announcement by Anglesey that it increased its stake in Grängesberg Iron AB (GIAB) to 49.75%. Anglesey retains the first right of refusal to acquire the remaining 50.25% of GIAB. Grängesberg has produced over 180Mt of iron ore and benefits from significant infrastructure. In 2022, Anglesey published a PFS for Grängesberg indicating that the mine could be re-started to produce high-purity 70% iron concentrate suitable for use in low carbon steel production.
Anglesey today reports that it has entered into an agreement to acquire an additional 29.8% of Grängesberg Iron AB (GIAB), taking its interest to 49.75%. Anglesey is acquiring the stake from Roslagen Resources AB. In exchange, Anglesey will issue Roslagen 14,544,827 ordinary shares at a price of 3p per share, and make a cash payment of approximately £87,000, for a total consideration of £522,000. Further details are provided in today's RNS. GIAB owns the idled Grängesberg iron ore mine in Sweden that produced 180Mt of iron ore before closing in 1989, with significant infrastructure left at the site. Pre-feasibility studies indicate that operations could be re-established at Grängesberg to produce a high-quality +67% iron concentrate – a low carbon source of iron ore for European green steel.
Anglesey Mining today reports on its internal review of the Northern Copper Zone at Parys Mountain copper-zinc-lead project in Wales and shows that there is a large body of copper mineralisation (the largest in the UK) and one which deserves wider follow-up. Anglesey also has a stake in a significant iron ore project in Sweden (Grängesberg) and a smaller equity stake in Canadian Iron ore development projects.
Anglesey Mining (Anglesey) has three assets in safe jurisdictions (Wales, Sweden and Canada), giving investors exposure to mixed commodities (copper, lead, zinc, gold, silver and iron ore). The Parys Mountain polymetallic deposit (100% Anglesey) and Grängesberg iron ore deposit (19.97% ‒ option to 70.22%) benefit from significant infrastructure, which, in our opinion, sets Anglesey apart from many of its peers. Anglesey also has a (12%) interest in Labrador Iron Mines, which is aiming to progress the Houston project through preliminary feasibility studies (PFS) in 2023. In our opinion, Anglesey has strong development projects in a variety of required commodities. We see fair value at 11.2p/share, using conservative assumptions.
Anglesey has commenced the tailings management design work and continues to advance geotechnical work on the White Rock and Engine Zone deposits. These are very important elements of the overall mine planning and permitting for the site. Management appears confident that the Northern Copper Zone could ultimately be significantly larger than the existing resource of 9.4Mt and will design a drill campaign accordingly. The Parys Mountain Project hosts a large resource and appears to finally be progressing steadily towards a feasibility study. The deposit is still open and the area remains highly prospective for new discoveries to add to the mineral inventory. We are optimistic that Parys Mountain is now moving in the right direction to be an operating mine and generate significant returns to shareholders.
Anglesey has a 20% interest in Grängesberg one of Europe's largest iron ore deposits ideally located to supply European smelters with low-carbon iron ore; and it has management rights and a right of first refusal to increase its interest to 70%. Anglesey reported (RNS 19.07.22) the completion of an updated PFS (2022 PFS) for Grängesberg undertaken by Micon; the 2022 PFS indicates positive economic outcomes for Grängesberg, key project metrics are provided in Table 1. Grängesberg could become a significant, major supplier to the European steel mills, supplying high-grade concentrate for low-carbon steel production without high “green miles” for import.
Anglesey is making positive strides as it builds on the 2021 PEA for Parys Mountain. We note that assay results reported today add confidence to the current resource estimate and may contribute towards a resource reclassification which would add to the robustness of any economic modelling in our opinion. Today's news builds on recent positive news following Scully Royalty's recent US$3m strategic investment in Labrador Iron Mines Holdings Limited in which Anglesey has an 11% interest (post investment).
Anglesey Mining is a UK mining company with interest in heritage mining projects in Wales (Figure 1), Sweden, and Canada. Yesterday Anglesey reported the first batch of drill results from within the White Rock resource, part of its 100% controlled Parys Mountain project in Anglesey (Figure 2). Results are in line with the current resource estimate giving increased confidence to its validity. Further assays are awaited; results may contribute to the reclassification of portions of resource estimate. Once all assay results are received Anglesey will submit a composite sample for metallurgical analysis that will evaluate the potential of the implementation of DMS and Ore Sorting that, if successful, is likely to have positive impacts on economic modelling. Additionally, logged data will contribute to a geotechnical block model that will feed into mine design and optimisation.
Anglesey Mining (AYM LN) – £768k raised to progress Parys Mountain and Grängesberg projects BHP (BHP LN) - looks to DRC copper in major policy shift Cora Gold (CORA LN) – Step out and infill drilling returns good grades at Sanankoro Lithium Americas (LAC US) – Thacker Pass MRE increase and project scale upgrade Strategic Minerals* (SML LN) – Progress at Leigh Creek
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