Grängesberg Iron Ore Pre-Feasibility Study Com...

Trading Symbol

LSE: AYM

9 December 2021

Anglesey Mining plc

(“Anglesey” or “the Company”)

Grängesberg Iron Ore Pre-Feasibility Study Commenced

Anglesey Mining plc (LSE:AYM), the UK minerals development company, is pleased to provide the following update on the Grängesberg Iron Ore Project in Sweden.

Highlights

• Anglesey recently engaged Micon International to undertake an update on the 2012 Pre-Feasibility Study (PFS) to investigate the re-opening of the Grängesberg Iron Ore Project
• During the life of the original operation, Grängesberg produced 180Mt of iron ore. Prior to closure in 1989, when the iron ore price was trading around US$30/t, the Grängesberg mine was the third largest iron ore mine in Sweden and employed over 1,500 people.
• The Swedish Mining Inspectorate granted a mining for the project concession in 2013, which is valid for a minimum of 25 years.
• The current work programme is intended to provide an update on the PFS completed in 2012, which demonstrated an extremely robust development option based on the following parameters:
  • Annual production of 5.3Mtpa of ore, producing 2.5Mtpa of >68% Fe concentrate, with a mine life of 16-years
  • Probable reserves of 84Mt at 37.2% Fe derived from 148Mt of Indicated and Inferred resources

Jo Battershill, Chief Executive of Anglesey Mining, commented: “The Grängesberg mine provides significant exposure to iron ore for Anglesey Mining. The project has all the attributes of a globally significant iron ore deposit. It has a large resource, the ability to produce a high-grade iron ore concentrate and is situated adjacent to existing rail infrastructure with a direct link to the port of Oxelösund on the Baltic Sea.

The worldwide movement towards decarbonisation is resulting in manufacturers seeking to minimise their carbon footprint. The production of a >68% Fe concentrate in Europe will afford local steelmakers the opportunity to shorten their supply chains and lower overall emissions. The commissioning of the HYBRIT fossil fuel free steel plant in Sweden already demonstrates the huge progress being made with regard to ‘green steel’ in the European region. Additionally, we note with interest the recent media reports suggesting the new Prime Minister of Sweden sees the need for more mines in the country.

There are a number of companies listed on the London, Toronto and Nordic exchanges with directly comparable projects that clearly demonstrate the potential upside to Anglesey Mining shareholders. The completion of the updated PFS will be an important step towards unlocking the value of this deposit. We very much look forward to sharing the results of this study with the market in the new year.”

Grängesberg Iron Ore Project – Updated Pre-Feasibility Study

Anglesey owns a 20% stake in the Grängesberg Iron Ore Project, located 230km northwest of Stockholm in Sweden. The Company has recently appointed Micon International to commence an update of the original PFS for Grängesberg, completed in 2012. The results of the updated PFS will be important in guiding the Anglesey Board in the options to bring the Grangesberg Mine to production and on its Right of First Refusal over an additional 50.1% of the project.

The Grängesberg project is a substantial iron ore asset located in a very favourable jurisdiction and, prior to its closure in 1989, the mine produced around 180Mt of iron ore. Remaining resources were estimated at 148Mt at 41.3% Fe in an NI 43-101 Technical Report completed by Roscoe Postle Associates Inc in 2014.

	Resource	Tonnes	Fe
	Category	(Mt)	(%)
Grängesberg	Indicated	115.2	40.2
	Inferred	33.1	45.1
	Total	148.3	41.3

Diamond drilling has confirmed that the mineralisation at Grängesberg remains of mineable widths at a depth of 1,200m below surface. Historical geophysical work suggests the orebody may be open down to a depth of 1,700m.

The Pre-Feasibility Study completed in 2012 demonstrated a probable reserve of 84Mt, which at a proposed mining rate of 5.3Mtpa, generated a mine life of more than 16-years. Historical production demonstrated that beneficiation of the ore produces a very high-grade concentrate (>68% Fe).

About Anglesey Mining plc

Anglesey Mining is listed on the London Stock Exchange and currently has 248,070,732 ordinary shares on issue.

Anglesey is developing its 100% owned Parys Mountain copper-zinc-lead deposit in North Wales, UK with a 2020 reported resource of 5.2 million tonnes at 4.3% combined base metals in the Indicated category and 11.7 million tonnes at 2.8% combined base metals in the Inferred category. 

Anglesey holds an almost 20% interest, and management rights to the Grangesberg Iron project in Sweden, together with a right of first refusal to increase its interest by a further 50.1%.  Anglesey also holds 12% of Labrador Iron Mines Holdings Limited which holds direct shipping iron ore deposits in Labrador and Quebec.

For further information, please contact:

Jo Battershill, Chief Executive [phone]

John Kearney, Chairman + 1 416 362 6686

LEI: 213800X8BO8EK2B4HQ71