A pre-feasibility study gives Angus & Ross's Black Angel zinc/lead project a £30 million net present value.

The study, carried out by mining consultant Wardell Armstrong International, concludes there is an economic case for reopening Greenland's previously rich Black Angel mine. At today's metal prices, Wardell Armstrong reckons Black Angel's proven mineable ore reserves of 1.7 million tonnes at 9.7 per cent zinc, 3.1 per cent lead and 21 grammes-a-tonne of silver imply a 35 per cent internal rate of return and a net present value of £30 million.

That compares with today's AIM value of £6.5 million for Angus & Ross, whose shares were floated at 19p in 2001 but now stand at 9.38p. Chairman Robin Andrews claims that, if drilling starting later this year bears out expectations, the company's net present value could soar to more than £100 million.

He agrees that York-based Angus & Ross would have to raise more funds to develop Black Angel, by an equity float if the share price improves significantly or by farming in a corporate partner. The shares have speculative appeal.