Restart of Black Angel Mine with production of Zinc, Lead and Silver expected in 2008

Mining Licence application at an advanced stage
A&R submitted its Mining Licence application in February to the Greenland Bureau of Mines and Petroleum ("BMP").  The BMP has confirmed that its review of the Bankable Feasibility Study ("BFS") and of the mining licence application is complete and that its report has been forwarded to the Joint Committee, for its approval.  A&R expects the mining licence to be issued in June.

Bankable Feasibility Study
The BFS, prepared by Wardell Armstrong International, was based entirely on the removal of pillars from the Angel and Cover zones and covers the first 4 years of operations.  The project will achieve full production during year 1 and is then forecast to produce 230,000 tonnes of high grade ore in each subsequent year and over the 4 years, to generate earnings, before interest and tax, of $97 million, free cash flow of $26 million and deliver an IRR of 43% at a discount rate of 10%.

Enhanced Management Development Plan - Phase 1
The A&R management team recognises that other available mineable resources (not to proven resource standard) were not included in the BFS.  These include the Nunngarut deposit, with an indicated resource of 196,000 tonnes (grading 9% zinc, 3.4% lead and 31grams per tonne of silver) which is currently accessible for mining, and the Deep Ice and other zones with combined indicated resources of 697,000 tonnes which will be accessible via the cable car. Mining the Nunngarut deposit in parallel with the reserves identified in the BFS has enabled A&R to develop an Enhanced Management Development

Read more here