Anglesey Mining aims for start of production at Parys project in 2020

London based firm Anglesey Mining said on Friday that it was looking to step up development at its Parys mountain project as a result of the recent uptick in base metal prices, with a feasibility study set for completion by mid-2018 and initial output pegged for the first half of 2020.

In the time since the initial scoping study was undertaken in July by Micon International and Fairport Engineering, the average price of all metals produced at the Parys site had risen, with copper at $3.10 per pound compared to $2.50 two months earlier.

Zinc increased $0.15 to $1.40 a pound and lead moved up to around $1.09 from its $1.00 per pound mark in July.

Based on the numbers supplied in the report, the project had a pre-tax net present value (NPV) of $33.2m and an indicated rate of return (IRR) of 28.3%, however, using the long term price projections of $1.35 for zinc and $3.00 for copper, the company's pre-tax NPV would rise to $43.2m with an IRR of 33%.

Anglesey also noted that the study did not reflect its current level of inferred resources, saying the report was based on its 2012 figures of 2.1m tonnes of indicated resources and did not include its 4.1m tonnes of inferred resources that the firm believed would increase the projected 8 year lifespan of the mine to somewhere between 15 and 18 years.

Anglesey was said to be preparing an environmental impact assessment, with talks to potential financiers to come shortly thereafter.

In reaction to the news, Beaufort Securities reiterated its 'Speculative Buy' recommendation on Anglesey.

As of 1400 BST, Anglesey shares had leaped forward 24.23% to 3.64p.