StockMarketWire.com - Angel Mining has announced that excellent progress is being made with the construction of the cable car upper terminal at the Black Angle Zinc/Lead Mine.

The mine is the company's primary asset and consists of a JORC resource of 4.425mt of high grade zinc lead ore. The resource ranges from 17.5% to 6.4% in terms of metal content. The deposit was originally mined by Cominco from 1976 until 1990 when the mine was closed due to depressed metal prices.

The resources are hosted inside a 1,000m high mountain of white marble in Northern Greenland, inside the Arctic Circle. A cable car is the only practical way to access the mine from the base camp at Maarmorilik, which is 1.7km away across a fjord. The original cable car, installed by Cominico, was removed in 1990 when the mine was closed.

The reinstatement of the cable car has been a significant logistical hurdle for the last 3 years. Construction was originally delayed, in 2008, due to the global financial crisis but 2010 saw the construction of the lower terminal. This season the upper terminal should be completed and the cables should be installed. Due to the remote location, access by ship is seasonally limited to July through December and construction is only really practical between April and October. Outside of those periods, the fjord is frozen over and daylight hours are very limited.

The main contractor, Entreprenørfirmaet, has all the steel and formwork in place and will commence pouring concrete after an inspection by engineers from Garaventa who are now on site for that purpose.

Garaventa are also installing a temporary cable which will be used to haul the main cables across the 1.7km divide between the base camp at Maarmorilik and the mine entrance which is situated 600 meters above sea level on the other side of the fjord.

This is a major logistical and technical achievement for the company in its pursuit of putting the mine back into production during H1 2013. A Eurocopter Super Puma helicopter was used on 8July to lift the saddles into place in the upper terminal. The saddles will carry the main cables and cannot be broken down into light weight components. Consequently, the extraordinary lifting power of the Super Puma was needed to get them in place. The helicopter was flown in from Finland to do this major lift and to help another major Greenlandic project.

Nicholas Hall, CEO, commented: "I am genuinely delighted that we have finally crossed this hurdle. EMJ and Garaventa have achieved an important milestone by getting the saddles into the portals as this was always going to be one of the most challenging tasks to undertake. They will now complete the installation of the winding gear and install the cables while we can take advantage of summer conditions. This has been a very difficult and challenging process. However, this now marks the clear turning point in the road to production at Black Angel.

"Unlike many AIM mining companies, Angel Mining is not an exploration company. We own one of the world's most significant zinc/lead mines in the world. It is amongst the world's highest grade zinc deposits and is certainly one of the highest quality ore bodies known as it contains very low levels of impurities. As such, it should be a key deposit in the world's future supply of zinc and lead.

"This day one year, ago zinc spot contracts were trading at $1,780 - today they closed at $2,350, an increase of 32%.

"We are now a producing mining company, and as we ramp up gold production we should substantially reduce our future capital requirements. I look forward to announcing further operational updates in the near future."


At 11:18am: [LON:ANGM] share price was +0.15p at 2.35p



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