Operating Update
Angel Mining plc (the "Company")
AIM: ANGM
Highlights
- All permits now in place for the mining, production and export of gold, including the Carbon in Pulp ("CIP") cyanide leaching circuit;
- The gravity separation section of the processing plant is operational; and
- CIP unit to be commissioned in late June.
The Board of Angel Mining, the Greenland focused mining company, is pleased to provide the following operational update.
Nalunaq
As announced on 2 March 2010, gold was first poured on 28 February 2010 by processing fines collected from within the mine. It had been hoped that this practice would enable the mine to have some limited production of gold during the period of construction and commissioning of the gravity separation and CIP sections of the plant.
It was discovered, however, that doré produced this way had an unexpectedly high arsenopyrite content which made the refining process uneconomic. It was decided, therefore, to delay doré production until the full plant was commissioned as the CIP circuit would eliminate this problem. The fines material obtained to feed the furnace has been stockpiled and will be processed through the CIP circuit so no gold production has been lost.
The Company had originally hoped to have the plant fully operational in May but there have been delays in delivery of vital components, largely due to adverse weather conditions and the resultant shipping problems. At this time of the year, ice flows can be blown into the fjord making it hazardous for ships to get through.
The gravity plant has now been commissioned and operational for two weeks. In response to the performance of the plant thus far, one further modification is being introduced to improve the concentrate prior to smelting. The CIP circuit is in the later stages of construction and it is now expected that the plant will be fully operational in early July.
The Bureau of Minerals and Petroleum has provided all the necessary permits to build and operate the CIP plant and to export the doré gold which we will produce. No other permits or permissions are necessary for the Company to move into full scale production.
Gold production is expected to be between 12,000 and 15,000 ounces during the current financial year, which is similar to previous forecasts. The expectation for the following year is approximately 25,000 ounces.
Black Angel
Work is proceeding with the construction of the upper terminal of the cable car and completion is planned for September. The process plant and materials handling design are well advanced, as is the equipment procurement plan but the timetable for achieving production is subject to the availability of finance. The Company is in advanced discussions with a number of potential funders but has not as yet secured a commitment. Should the Company be able to obtain funding within the next four months, it is hoped that production will then commence in H2 2011.
Angel Mining CEO Nicholas Hall commented:
"I am very pleased to be able to report that we now have all permits necessary to operate both the gravity and the cyanide leaching circuits of the Nalunaq gold plant. We are looking forward to building up gold production and providing positive cashflow from July/August. We are working on some interesting funding initiatives for Black Angel and I hope to be able to report more detailed progress over the next few months."
| Enquiries: | |
|---|---|
| Angel Mining plc Nicholas Hall, Chief Executive |
07931 709 053 |
| Fox-Davies Capital (Broker) James Hehn |
0207 936 5200 |
| WH Ireland Limited (Nominated Advisor) Katy Mitchell |
0161 832 2174 |
| Bishopsgate Communications Limited Michael Kinirons |
0207 562 3350 |