Angel Mining

Angel Mining (ANGM) hopes to reach monthly production of 1,500 to 2,000 oz soon after its largest gold pour yet from Nalunaq in Greenland.

The AIM-quoted company, which recently poured 517.8 oz of molten gold, hopes to reach an annual production rate of 24,000 oz in the first quarter of this year.

Chief executive Nicholas Hall notes that Nalunaq has been generating cash since December 2011, despite harsh physical conditions, and sees this improving as production rises. Angel expects Nalunaq to have a two- to five-year mine life, subject to new exploration successes.

The company's stated intention is to spend its cash flow on more exploration, debt reduction and developing its high-grade zinc, lead and silver project at Black Angel in northern Greenland. Resource estimates for Black Angel from 2007 envisage potential mineable reserves of 449,000 tonnes of zinc at a 4.5% grade, lead at 1.9% and silver at 9 grammes a tonne.

Angel shares, which hit 25p on Ofex/PLUS in 2001, fell as low as 0.83p during the past year. Highlighted by Growth Company Investor at 1.75p in December, they have already reached 3.05p and should have further to go, if progress continues at Nalunaq.