Shares of Anglesey Mining (LON: AYM) have spiked in the last hour after Labrador Iron Mines Holdings Limited, in which Anglesey has a 12% holding, released a Preliminary Economic Assessment on its 52% owned Houston Project.
Anglesey’s share price spiked over 32% to 6.75p following the announcement.
The assessment reviewed the development of the Houston and Malcolm deposits in Newfoundland and Labrador and in Quebec, Canada found that Iron ore production would amount to approximately 2 million tonnes per annum of 62% iron lump and sinter direct shipping ore.
The initial capital cost, including contingency, is forecast at $65 million, which is relatively low according to the company.
“The forecast after-tax financial results are strong with an NPV8 and an IRR at US$90 per tonne for 62% Fe ore of C$109 million and 39% respectively,” said Anglesey.
“Using the current 62% Fe ore prices of US$160 per tonne increases these financial results to C$459 million and 209% respectively,” added the company.