The Parys mine project in North Wales may not go into commercial production next year as the United Kingdom’s biggest ever base metal mine. The operation was to have produced zinc, lead, and copper concentrates together with significant amounts of gold and silver.
Anglesey Mining, an affiliate of Vancouver-based Imperial Metals (TSE), was unable to complete a US$50-million financing as originally contemplated for its 100% owned project.
The company did arrange a project loan of US$17 million, increasing to US$25 million upon completion of certain tests, with Swiss Bank Corp. and the Bank of Scotland. The project also received a US$3-million Welsh office assistance grant.
Anglesey was unable, however, to obtain sufficient commitments to complete the equity portion of the financing package. The company is now studying alternative financing arrangements.
About US$17 million has been spent on the Parys Mountain project to date, with Imperial providing US$3 million to Anglesey during the feasibility study and mine development financing stage.
The project is reported to host reserves of 6.45 million tonnes grading 5.35% zinc, 2.34% copper, 2.6% lead, 39 grams (1.139 oz.) silver and 0.32 grams (0.01 oz.) gold per tonne.
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