Persistent mining hopeful Angus & Ross has received an ‘encouraging’ response from the potential backers of its Black Angel project in Greenland.

The AIM-quoted company hopes to re-open the Black Angel mine and start production of zinc, lead and silver from there later this year. A recent bankable feasibility study by consultant Wardell Armstrong International suggests it will take a total of £25 million to start production, which could produce 230,000 tonnes of high-grade ore annually for four years and generate earnings, before interest and tax, of £48 million over that period.

Angus, chaired by the indefatigable Robin Andrews, says it has been ‘encouraged by the response it has received in discussions with various potential sources of development capital and other finance’. If this comes right, the shares’ present price of 12.5p, half their level two years ago and valuing the company at £18 million, could look distinctly grudging.

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