Publication of Newsletter (8423S)
November 28 2011 - 2:00AM
UK Regulatory
TIDMANGM
RNS Number : 8423S
Angel Mining PLC
28 November 2011
ANGEL MINING PLC
("Angel Mining" or the "Company")
AIM: ANGM
Publication of Newsletter
The Board of Angel Mining is pleased to announce the publication
of their second corporate newsletter. The full wording of the
newsletter can be found on the company's website
(www.angelmining.com) but the summary text is as follows:
"Highlights
-- Record pour of 12.53 kilograms of dore at Nalunaq on 21 November
-- New AAS machine is fully operational
-- New mine plan will increase the amount of high grade ore that can be mined at Nalunaq
-- Recruitment of a new Deputy General Manager and the appointment of a new Mine Captain
-- All four of the cables at Black Angel have been tensioned and
the project is closing for the winter period
-- Discussions are ongoing with regards to refinancing the
existing short term debt issuance facilities
Nalunaq
Nalunaq is currently in a routine of pouring gold every two
weeks and on Monday, 21 November, we achieved our biggest pour to
date at 12.53 kilograms.
The new AAS machine is on site and is now fully operational
measuring ore grade and it is also helping the plant management
team to better understand plant efficiency levels. We are currently
recovering approximately 70% of the gold in the feed material and
that this can be further improved by reducing the grind size still
further and replacement of the carbon transfer pump with a
chokeless impeller unit. Finer grind may reduce the throughput
capacity of the plant as it will require longer residency time in
the ball mill, but this is acceptable if the grade of ore to be
processed is of a sufficiently high grade such that the plant will
still produce the targeted 2,000 ounces per month. Work is also
continuing to replace the agitator assemblies in the CIP tanks as
they have proven to be too weak for the task and have been twisting
out of shape. To date, two of the eight tanks have been upgraded
and we expect this to improve the performance in transferring the
gold from the cyanide to the carbon.
Steve Ainsworth, the newly appointed Deputy General Manager has
just completed his first tour on site and has instigated some
interesting new developments. He has created a more rigid structure
in the mining section by creating three teams who will work in
rotations so that there will always be two of the three teams on
site working 6 week tours, 7 day weeks and 12 hour days. He has
also appointed a new Mine Captain, Tom Gaynor, who has replaced Dan
Kuhn. Dan did an excellent job for us by establishing our basic
mining team and training men in the use of explosives. He
celebrated his 71(st) birthday with us last March and has now
returned to his family in Bogota, Columbia.
Before leaving, Dan suggested that we consider mining the
pillars left behind by Crew Gold. Steve has explored this
suggestion and, together with our mining engineer, Andrew Shuster,
they have developed a mining method which we expect to submit to
the BMP in the coming weeks as part of a request for a revised
mining permit. The application will be supported by a report and
risk analysis prepared by Golder & Associates whose team
arrived on site on 18 November.
The process plant has been recovering approximately 70% of the
gold from plant feed and we are working to increase this to over
90%. Part of the proposed solution is to reduce the grind size down
from 100 microns to 75 microns, which will require more milling
time. This factor, together with the general experience of
reliability, means that the anticipated throughput rate will reduce
to 150 tonnes per day from the 200 tonnes per day originally
planned.
The ball mill is arguably the most critical part of the process
plant as it is essential for feeding material into the plant and
there is no substitute process. A few weeks ago some of the mill
bearings failed and problems were discovered with the mill drive,
including damage to a pinion. The engineers on site have made a
temporary repair which has enabled the ball mill to be run at a
reduced tonnage with careful monitoring. A new pinion is being
manufactured and should be on site before 25 December 2011.
Black Angel
Garaventa have installed and tensioned the four cables and the
upper terminal construction is complete. An independent rock
mechanic inspected the portals and cable car anchor points and has
confirmed that they are all in good condition.
All contractors have now left site leaving a skeleton crew on
site for the winter period. The fjord has already frozen over,
which is very early, and it is likely that it will be inaccessible
by ships until next June. At that time, Garaventa will return to
complete the commissioning of the cable car and, subject to the
availability of project finance, construction work will start
towards the development of the mine and the process plant.
There has been a delay in the arrival of the new Project
Director but he is now expected to commence work in early December.
In the meantime, our Operations Support Manager, Joan Plant, has
been developing the detailed project programme.
Finance
Every effort is being made to accelerate production of gold at
Nalunaq to improve cash flow.
The price of gold has been fluctuating in response to world
events and the Company has fixed the price on about 60% of its
anticipated production for the next few months at a price just
below $1,770 per ounce.
Discussions are ongoing with Cyrus Capital Partners with regard
to the renegotiation of short term debt repayment terms. It is
anticipated that they will play a vital role in the raising of
funding for the construction of Black Angel.
As announced previously, Socius continue to hold 50,025,312
shares relating to the drawdown of $3.0 million which was not
completed. The Company's lawyers are working on a solution to the
technical legal problems associated with the return of these
shares. We believe this issue can be resolved within the next few
months and Socius is working with us to achieve this.
Website
A company presentation from recent conferences in Nuuk and
London is available on the website.
Nalunaq Production Stats Year to
date October
========================== ======== =========
Tonnes mined 6,447 1,492
-------------------------- -------- ---------
Tonnes processed 14,372 3,088
-------------------------- -------- ---------
Dore produced (ounces) 1,692 335
-------------------------- -------- ---------
Gold recovered 1,512 391
-------------------------- -------- ---------
Gold sold (ounces) 1,512 391
-------------------------- -------- ---------
"
Enquiries:
Angel Mining plc
Nicholas Hall, Chief Executive Officer 07931 709 053
Kevin McNair, Chief Financial Officer 07900 690 908
Fox-Davies Capital (Nominated Adviser
and Broker)
Simon Leathers 0203 463 5010
Bishopsgate Communications Limited
Nick Rome/Shabnam Bashir 0207 562 3350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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