Multi-million pound value of copper mine’s hidden deposits

A STUDY on the potential deposits of an Anglesey copper mine has been released.

The scoping study on Parys Mountain, near Amlwch, claims there are deposits of copper, lead, zinc, gold and silver worth up to $270m (around £210m).

Anglesey Mining’s multi-million pound deal to re-start work at Parys Mountain near Amlwch after 100 years collapsed in 2009 when the economic crisis sent metal prices tumbling.

Since then a mineral resource estimate confirmed additional finds of copper, zinc and lead and Anglesey Mining commissioned a full scoping report before deciding what to do next.

Now that report prepared by Micon International Limited (Micon) and Fairport Engineering Ltd (Fairport) has come back.

It has increased hopes that mining could one day return to the site – once the world’s biggest copper producer – but there have been previous false dawns.

The report envisages a mining rate of 1,000 tonnes per day over an initial mine life of eight years.

The overall net smelter return (NSR) for the three concentrates (zinc, copper, lead) and the silver and gold precious metals contributions, is expected to total more than $270 million at the forecast metal prices.

The pre-production capital cost of the preferred option base case is estimated at £40 million.

Operating costs were estimated at £36 per tonne of ore treated.

Bill Hooley, Anglesey Mining chief executive, said: “We are very pleased with the results of the Scoping Study which demonstrate a viable mine development at Parys Mountain and a healthy financial internal rate of return.

“This is the first detailed economic study of the Parys Mountain project for a number of years and, based on the current availability of reconditioned process plant, the estimated pre-production capital cost for the project is at a level that could be financeable.”