AMN - ALGERIA: Oued Amizour exploration licence reissued

Terramin Australia reports that the Algerian mining regulator, Agence Nationale des Activitiés Minières (ANAM), has re-issued the Oued Amizour exploration licence which incorporates the Tala Hamza Zinc Project (Exploration Licence).

The Exploration Licence has been re-issued for a term of one and a half years. It follows the general agreement between Terramin and its Algerian joint venture partners that the revised feasibility study in respect of Tala Hamza is positive and meets the objectives and expectations of the partners and, in its current form, provides a strong basis to move towards a decision to mine.

The revised Tala Hamza zinc project Feasibility Study is based on the underhand drift cut and fill mining method. This mining method has major advantages over the previously recommended mining method for the development of Tala Hamza as it requires significantly less pre-production capital expenditure, a shorter pre-production development period, less mining dilution, higher recovered ore grade and significantly smaller environmental footprint.

As announced last July, the project partners had to request renewal of the Exploration Licence to ANAM based a work program to complete aspects of the revised Definitive Feasibility Study. The re-issue of the Exploration Licence will allow Terramin to carry out the “on ground” elements of this work program. This additional work which relates to the hydrology, geotechnical data, mining infrastructure and tailings is generally of a nature that is often performed at the mine design preparation stage. However, in certain jurisdictions, including Algeria, government organisations and regulators require that such work be performed at feasibility stage, prior to providing mining approvals.

Martin Janes of Terramin says: “Management and the board of Terramin have worked very closely with our partners in Algeria and we are very confident of the work performed thus far. The re-issue of the exploration licence bodes well for a fast completion of the revised feasibility study and a decision to mine. The development of the Tala Hamza is poised to take advantage of the zinc shortage and higher prices which are widely expected to occur in the coming years.”

Tala Hamza is owned by Western Mediterranean Zinc Spa (WMZ), a joint venture vehicle to develop the project between Terramin and Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF). Terramin holds a 65% shareholding in WMZ, with the remaining 35% held by two Algerian government-owned companies: (32.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%). 

The project is located on the Mediterranean Sea, 15 km from the regional city of Béjaia. The city of Béjaia provides extensive infrastructure including an international airport and deep water port. Location benefits include grid power, abundant water and proximity to European zinc smelters.

The Tala Hamza deposit holds a Resource of 68.6 million tonnes (Measured, Indicated and Inferred) at 4.6% zinc and 1.2% lead at a cut off of 2.5% zinc equivalent (inclusive of Probable Reserve). The deposit is situated within the Oued Amizour permit area that covers 125 sqkm and includes a number of potential additional prospects for lead-zinc and copper.  

www.terramin.com.au 

News courtesy of International Mining