AMN - ALGERIA: Terramin resumes Tala Hamza discussions

Terramin is in discussions with Algerian authorities in relation to the revised definitive feasibility study (DFS) for the Tala Hamza Zinc Project. The discussions have recommenced since elections in Algeria last year saw former-Prime Minister Abdelmadjid Tebboune returned as President.

The new President took office on December 19 and since then Terramin has re-engaged with authorities with a view to progress and refine the DFS to enable formal approval in due course.

Tala Hamza is on the Mediterranean coast of Algeria, 15km from the regional city of Béjaia, and is held by Western Mediterranean Zinc Spa (WMZ), a joint venture in which Terramin holds 65 per cent and two Algerian government-owned companies have the remainder. Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) has 32.5 per cent and Office National de Recherche Géologique et Minière (ORGM) has 2.5 per cent.

The revised DFS envisages a 21-year project at lower processing rates and higher grades than the original DFS in 2010. Importantly, the DFS 2018 moves away from the larger-scale, higher capex block cave mining method and utilises a selective mining method, Underhand Drift and Fill (UDF) that removes the surface expression of the mine and allows for underground placement of the majority of the tailings generated by the project.

The change in mining method will remove the need for a tailings dam and significantly reduce the pre-production capital expenditure envisaged in the DFS 2010.

Following confirmation from the Algerian partners that they accept the technical aspects of the project, Terramin has continued to have a dialogue in regard to the commercial and financial outcomes of the project.

While discussions have been positive with a high level of cooperation from the partners, progress has been slowed as the Algerian government has been in a transitional political phase.

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.

Tala Hamza deposit holds a measured, indicated and inferred resource of 68.6 million tonnes t 4.6% zinc and 1.2% lead at a cut-off of 2.5% zinc equivalent. The deposit is situated within the Oued Amizour permit area that covers 125 square kilometres and includes a number of potential additional prospects for lead-zinc and copper.

The project is significant with the potential to be one of the top 10 zinc producers in the world.

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