Western Metals summarises resources at Parys Mountain acquisition

Western Metals, the Australian listed miner that is in the process of acquiring the Parys Mountain copper-zinc project from Anglesey Mining, has released a summary of the historical mineral resources of the North Wales project.

The total historic indicated and inferred un-depleted resource on the project is; 7.76 million tonnes at 2.0% copper, 2.4% lead, 4.9% zinc, 39 g/t silver and 0.33 g/t gold.

The company has also reported that there has been no historic mining in the resource areas apart from a 300 metre shaft and approximately 800 metres of lateral underground development, established as an underground exploration drilling platform and for the purposes of collecting a bulk sample.

Completion of the acquisition is subject to a 120 day due diligence which commenced on April 8th 2008.

The purchase is being made for an initial AUD$7.6m in cash and shares. A balance of A$21.5 million will be paid on completion of a successful bankable feasibility study or after three years, whichever is the earlier.

During the initial 15 month period of ownership, Western Metals is committed to invest a minimum of A$3.25 million in the project, extending to a total of A$6.5 million during the first 24 months.

Parys Mountain was once one of Britain’s biggest producers of copper but mining ceased in the early 20th Century. The project has planning approvals for a 1,000 tonne per day operation.