19 February 2009

Appointment of main contractors for Black Angel Mine mineral processing plant

A&R announces the following project development progress of its Black Angel Mine in Greenland.

US specialist Wardrop Engineering, a Tetra Tech Company ("Wardrop"), and Canadian based SGS Minerals Services UK Limited ("SGS"), have been selected as the main nominated contractors for the development of the Black Angel Mine mineral processing and waste handling plant.

Both Wardrop and SGS have been working in close consultation with the Company to develop detailed budgeted proposals for the Engineering, Procurement and Construction Management services ("EPCM") to construct and commission the plant to be installed inside the Black Angel Mine in Greenland.

With a UK office based in Swindon, Wardrop's proposal follows on from their study, which was used to determine the basic engineering design and cost of the proposed plant. This will consist of a primary and secondary crushing circuit, pre-concentration by optical ore sorting, with milling and fine grinding feeding a conventional froth flotation plant. Premium grade Zinc (59-61% Zn) and Lead concentrates (69-71% Pb) will be produced. These will be shipped to the logistics hub at Maarmorilik for bonded product storage as part of the recently announced off-take agreement with Swiss metal trader MRI Trading AG.

SGS, with a laboratory based at Wheal Jane, Cornwall, has submitted a detailed proposal for the necessary metallurgical test work to support the design work to be undertaken by Wardrop. This work will be undertaken in conjunction with optical sorting specialists, CommoDaS GmbH of Hamburg, and follows on from the extensive feasibility level metallurgical studies already undertaken.

Tim Daffern, the Company's Mining and Exploration Director commented:

"Wardrop and SGS are world class minerals service providers and we have developed a close working relationship with their UK based teams.

The work done to date by these two companies will help Angus & Ross plc to take advantage of the anticipated rise in Zinc prices as it will minimize the time between construction and production."


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