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La Zarza Feasibility Study
La Zarza Feasibility Study.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n Ormonde Mining PLC\n06 February 2008\n\n\n06 February 2008\n\n\n Ormonde Mining plc\n\n Ormonde Reports La Zarza Feasibility Study\n\nDUBLIN & LONDON: 06 February 2008 - Ormonde Mining plc (\"Ormonde\" or the \"\nCompany\") reports results received from the feasibility study (the \"Study\") on\nits La Zarza Project in the Huelva Province, southern Spain. The Study was\ncarried out by internationally recognised consultants under the management of\nAker Kvaerner Engineering Services Ltd, and evaluated an underground mining\nproject at a 600,000 tonne per year (\"tpy\") production rate.\n\nThe Study provides a mining plan and process plant design to access the\nconsiderable revenue potential of the metals in the La Zarza deposit, and\noutlines a route designed to deliver saleable concentrates at good recovery\nlevels of contained metal. The capital cost estimate in the case of the 600,000\ntpy production rate is higher than anticipated, and in particular, this includes\na higher than normal proportion of fixed capital costs. However the Study also\nmakes key recommendations, which the Company is following with a view to\nmaximising the returns from La Zarza. Consequently, using the considerable\ndesign data now available, Ormonde is evaluating two alternative development\nstrategies as follows:\n\n\n • An increase in the production rate through an enlargement of the mineral\n resource, based upon extensions to the thick zinc mineralised intersections\n identified in last year's drilling (reported November 2007);\n\n • A reduction in capital costs; this may include an option for a more\n focussed initial development resulting in staging of capital investment.\n\n\nKerr Anderson, Managing Director, said:\n\n\n\"The current Study has shown that we have further work to do to maximise the\nreturn from La Zarza. We will therefore be following up on the Study's\nrecommendations, aiming to improve the Project's debt capacity and economics and\nto identify the best development path to deliver optimum value from the Project.\nThese studies will continue in tandem with our work to rapidly progress the\nBarruecopardo Tungsten Project.\"\n\n\n\nThe salient points from the current Study are:\n\n\n• Independent estimate of Indicated Resources totalling 9.9 million\n tonnes as follows:\n\n Copper Silicatado Mineralisation\n 2.6Mt grad...