Angel Mining PLC New mining permit received and production update (7903K)

TIDMANGM

RNS Number : 7903K

Angel Mining PLC

28 August 2012

ANGEL MINING PLC("Angel Mining" or the "Company", AIM: ANGM)

Nalunaq - new mining permit received and production update

The Board of Angel Mining is pleased to announce that it has received the permit, from the Bureau of Minerals & Petroleum, that enables the Company to mine the high grade pillars at the Nalunaq gold mine in Southern Greenland.

The pillars are estimated to contain 30,000 tonnes of recoverable ore at an expected average grade of 18 grams per tonne. This high grade resource is expected to underpin the level of gold production for the next year or more. Two mining teams are being trained in the necessary mining method and rigorous health and safety procedures required to mine the pillars and production from this ore is expected to have commenced by mid-September. Afterwards, the Company expects to be producing consistently above 1,500oz per month from a single gold pour, i.e. at commercial levels of production given the Company's target of 2,000oz per annum.

The permit has been granted later than the Company had expected and the purchase of essential consumables was delayed as a result. Consequently, the mine had to process low grade material in the intervening period. Production for July was 29.3kg (942oz) and to date in August it has been 17.6kg (565oz). The next gold pour is planned for 27 August.

Work is also progressing well with the development in the Mountain Block, where the Company is accessing ore with sample grades consistently above 50 grams per tonne. A new ore pass is being constructed to replace a 5km haul route to bring the ore to the process plant.

The work on the pillars and the ore pass is being led by the Nigel Handley who was recently appointed as Deputy General Manager and Head of Mining. Golder Associates have advised on the mining method and they will help the team monitor progress as the centre portions of pillars are extracted. The pillars are typically 35 metres long and 5 metres wide. The ends of the pillars will be reinforced with roof bolts in resin and the central portion, being about 25 metres by 5 metres, will be blasted into the stope voids on either side. The material will then be recovered from the stope using high pressure water and a mechanical slusher, if needed.

Nick Hall, CEO of Angel Mining, commented: "I am delighted that this permit has been issued after the most rigorous scrutiny by the BMP and their professional advisers. This marks a major milestone towards the attainment of our production targets and we look forward to benefiting from the associated increased cash generation this will bring."

Enquiries:

 
 Angel Mining plc 
  Nicholas Hall, Chief Executive 
   Officer                              07931 709 053 
  Kevin McNair, Chief Financial 
   Officer                               07900 690 908 
 Fox-Davies Capital (Broker) 
  Daniel Fox-Davies/Simon Leathers       0203 463 5000 
 
 Bishopsgate Communications Limited 
  Nick Rome                              0207 562 3350

Background to Angel Mining

Nalunaq

The Company first poured gold at Nalunaq on 27 May 2011 following final completion of the processing plant and is targeting optimal production by Q1 2012 of approximately 24,000 oz per annum thereby providing the Company with cash flow which will be dedicated to funding development at Black Angel, further exploration at Nalunaq and reducing debt. The current mining plan anticipates a mine life of two to five years, subject to further exploration work. The directors anticipate that Nalunaq may enter into toll treatment arrangements with other potential gold mining activities in the region where appropriate. Angel Mining currently operates the only operational gold mine in the region and anticipates that its operation may be suitable for processing ore from other gold mining companies in the region in the future.

Black Angel

The Black Angel project is a high grade zinc/lead project based around a previously developed mine in the north of Greenland. The table below sets out the JORC Code compliant mineral resources estimate for the Black Angel project which includes three sets of zones within the mine and three satellite deposits which have been explored.

 
        Summary of Black Angel Mineral Resources (JORC) as of 31 December 
                                       2007 
                     Category      Tonnage    Zinc    Lead   Silver    Mineable 
                                     (kt)      (%)     (%)    (g/t)    reserves 
                                                                         (kt) 
                  =============  ==========  ======  =====  =======  =========== 
 Angel Zone        Indicated            791    13.0    4.5     25.0          218 
                  =============  ==========  ======  =====  =======  =========== 
 Cover Zone        Indicated            522     8.3    2.4     18.0          231 
                  =============  ==========  ======  =====  =======  =========== 
 Other zones 
  within the 
  Black Angel 
  mine             Indicated            697    10.4    3.3     13.0            - 
                  =============  ==========  ======  =====  =======  =========== 
 South Lakes 
  Glacier          Indicated          1,726     6.9    2.5     14.5            - 
                  =============  ==========  ======  =====  =======  =========== 
 Ark               Inferred             492     4.7    2.2     20.4            - 
                  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Indicated            196     9.0    3.4     31.0            - 
                  =============  ==========  ======  =====  =======  =========== 
 Nunngarut 2       Inferred               1     4.5    1.9      9.0            - 
                  =============  ==========  ======  =====  =======  =========== 
 Total                                4,425                                  449 
                                 ==========  ======  =====  =======  =========== 
 Source: Wardell Armstrong International Ltd.

The project consists of three phases:

Phase I: Complete the rehabilitation of infrastructure to allow access to the mine, the mine camp and related facilities.

Phase II: Complete the detailed review of the pillar extraction programme within the Angel and Cover Zones, including the construction of the process plant and related systems to allow for the shipment of concentrate from the site.

Phase III: Develop a further exploration programme for the existing JORC resources at the Ark and Glacier deposits as well as identified mineralization at Deep Ice, Nunngarut and a number of other exploration targets within the license area (see the announcements made by the Company on 6 June 2006 titled "Black Angel 2006 Resource Statement" and on 30 November 2007 titled "Black Angel 2007 Resource Statement").

Dr Bob Dowdell is the qualified person that has reviewed and approved the technical information contained in this announcement. Dr Dowdell holds a BSc and Doctorate in Mining Engineering from Newcastle University and is a Chartered Engineer and Member of the Institution of Mining and Metallurgy.

More information on the Company is available on the website, please click here: http://www.angelmining.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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