Angel Mining (LON:ANGM) is an AIM listed mining and exploration operation focused on Greenland and its mineral resources. The company owns two mines in Greenland, the Nalunaq gold mine and the Black Angel zinc and lead mine, and have recently announced that it has commenced production at its Nalunaq gold mine. Over the last year, the company has grown from a team of 3 to one of more than 75, and the commencement of gold production is a major milestone for the company. Following the recent announcement and a busy end to 2010, Nick Hall, the Angle Mining Chief Executive Officer, has taken time out to discuss various aspects of the business, including, the Nalunaq gold mine, the production process, Black Angel mine and its potential, finance and company aims.
Q1. Briefly, could you describe Angel Mining’s history, business model and mission?
Angel Mining was formed in 1998 as a mineral exploration company with specialist interests in tantalum. At that time the company was called Angus & Ross. It had exploration activities in Canada, China, Brazil, Australia and Greenland but none proved a mineable resource, except for the zinc/lead deposit in Greenland being the former Black Angel mine as operated by Cominco and for a short while by Boliden before closing in 1990.
A JORC resource study in 2007, prepared by Wardell Armstrong International reported a resource of 4.425 tonnes at an average grade of 11.6%, of which 8.6% is zinc and 3 % is lead. Included in the resource is a proven reserve of 1.489 tonnes at an average grade of 13.6% and a similar proportion of zinc and lead.
In early 2007 the company negotiated a loan facility, from a New York based hedge fund, to fund the completion of a bankable feasibility study, which was completed in January 2008. By May of that year the company had applied for and been granted a mining licence and was raising project finance to develop the mine. The banking crisis and falling commodity prices resulted in the withdrawal of the project finance offer and the company was then almost certain to go into default on the loan it had drawn on for the feasibility study.
The company had no funds to continue with the exploration projects and decided to transform itself into a mining…
Looks very interesting and has gone onto the "watch" list pending a good look at the company and the project.
But here's a quick "back of the fag packet" look !
If they are able initially to produce 2000 ozs Au per month at a cost below $600 , then assuming that 100% of the gold sold initally accrues to Angel before they repay their lenders, an average gold sale price of $1100/oz and with US$1.55 = £1 then we have a potential gross annual income of well over seven million pounds
[2000 *12 * 500 [1100- 600] /1.55 =£ 7,741,935.]
According to Sharescope ANGM's market cap on Friday was £26.9 million.
Interesting!
p3
