Parys MountainHighlights:• New phased development plan,...

Parys Mountain
Highlights:
• New phased development plan, initially mining
White Rock area from a decline
• Long term planning permission in place
• Ownership of relevant minerals and surface
land
• Low political risk
• Local infrastructure in place
• Enthusiasm of local people and government
support
• Significant upside in the exploration potential
In 1991 inferred and indicated resources were estimated
at 6.5 mt at over 10% combined metal content (not a
JORC-compliant resource). There is already a 300 metre
deep production shaft in place, together with 1,000
metres of underground development. The project's
planning permission remains in good standing and there
is strong local support for the proposed mine and mill
development. There are no restoration commitments in
respect of previous mining and no special environmental
issues or causes threatening the development.
Life of mine revenues would be derived chiefly from
copper and zinc, each providing about 40 per cent of the
total, with lead, silver and gold making up the other 20
per cent. In the early years of production zinc would
provide a higher proportion of the revenues. All of the
mining would be underground so surface disturbance
would be minimal. When in full production at 350,000
tonnes per year the mine is expected to produce about
20,000 tonnes of zinc, 8,000 tonnes of copper and
7,000 tonnes of lead metal in concentrates each year.
The headframe, the most obvious symbol of the
operation, has been in place on top of Parys Mountain
since 1989. The group owns the freehold of the mining
area. Infrastructure around the proposed mine is
excellent and relatively high unemployment means the
establishment of the project, in an area famous for its
mining activities, is favourably viewed by the local
authority and by the Welsh Assembly Government which
would provide grants towards capital costs.
Extensive geological studies over the period from 1996
to date have greatly increased the level of understanding
of the relatively complex, chiefly volcanic hosted,
massive sulphide deposits.
The phased production plans and the JORC-compliant
White Rock area resources bring Parys Mountain closer
to production yet still there are large unexplored and
prospective areas close to the proposed mining
operation. The plans are characterised by the security of
a significant cash flow together with the excitement of
blue-sky exploration. The company has always
considered the potential for discovery of additional
mineral resources in the untested areas of Parys
Mountain to be very significant.
White Rock Resources As estimated by Micon - January 2007
Million Cu Pb Zn Ag Au
Tonnes % % % g/t g/t
Above 280 metre level
Indicated 1 .18 0.38 2.47 4.68 4 1 0.38
Inferred 0.23 0.30 1.55 3.54 45 0.30
Total 1.41 0.37 2.32 4.49 42 0.37
Below 280 metre level
Indicated 0.57 0.33 1.71 3.42 35 0.54
Inferred 0.17 0.34 1.74 3.53 44 0.49
Total 0.74 0.33 1.72 3.45 37 0.53
Total White Rock
Indicated 1.75 0.36 2.22 4.27 39 0.43
Inferred 0.40 0.32 1.63 3.54 45 0.38
Total 2.15 0.36 2.11 4.13 40 0.42