Too Early For Parys Base Metals Project

by Sam Roberts
(London)

The base metals miner Anglesey Mining (AYM) says it is too early to make capital expenditure at its Parys Mountain location on the North Wales island.

With commodity prices still at relatively low levels it would not be viable to bring the site to production.

It takes the view that there will be a strong recovery in base metal commodities, including zinc, copper and lead, which are the main base metals in the historical resource of 7.7 million tonnes at 9.3% combined Cu, Pb and Zn.

There is also the need for far more certain and stable global equity and debt markets for any major capital project to be considered.

Parys Mountain is relatively quiet at the moment after Western Metals Limited (ASX:WMT), an Perth-based Australian resources company pulled out of potential purchase of the site in October 2008, citing the deterioration in the global economy and financial markets.

Anglesey also has a 50% interest in Labrador Iron Ore Holdings, a 90 million tonnes iron ore project in Western Labrador, Canada.

The Shefferville project is going ahead well with expectation that production will start in the second quarter of 2009.

This should follow satisfactory metallurgical testing and the production of samples which, according to Anglesey Mining, have impressed some European steel mills.

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