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TERRAMIN AUSTRALIA LIMITED - ASX: TZN
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Description
Terramin is a base metal production company with an operating mine in South Australia and other advanced projects in Australia and overseas. Current projects in Australia and Algeria are on track to produce more than 250,000 tonnes of zinc and lead metal in concentrate per annum.
The Company has a clear focus on base metal projects which are close to infrastructure to ensure low capital and operating costs. The assets in the Company's current portfolio were acquired in a period of low metal prices and well below long term metal prices.
Angas Zinc Mine, South Australia (100% owned and operated by Terramin)
Production at Angas commenced in July 2008. The initial Probable Reserves of 2.15 million tonnes at 10.5% Pb+Zn were are sufficient for a six to seven year operation. Situated in prospective ground in an historical mining belt, strong exploration prospects on the Company's tenements could potentially lead to an increase in production and an extension of mine life. The Angas Zinc Mine is located 2km from the town of Strathalbyn, 60km from Adelaide, the capital city of South Australia, and 70km from Port Adelaide.
The 400,000 tonnes per annum (tpa) operation was commissioned in July 2008 at a cost of A$71.4 million with low start up costs aided by the proximity of infrastructure such as mains power. Zinc concentrate is trucked 70 km to Port Adelaide for shipment to Asia; lead-copper-gold-silver concentrate is trucked 280 km to the Nyrstar owned Port Pirie lead smelter for further processing within South Australia.
Ore Reserves at 30 June 2010 were 1.69 million tonnes grading 9.75% Pb+Zn; 31 g/t Ag and 0.5 g/t Au. Additional Inferred and Indicated Resources total 0.66 million tonnes at 5.2% Pb + Zn. The mine has excellent potential for further reserves and resources and future exploration drilling is planned to test these targets. Terramin also has 1,160 square km of exploration titles in the area and an active exploration programme. The mine will treat 390,000 tonnes of ore during 2010 to produce 45,500-46,500 tonnes of zinc concentrate at a grade of 51% Zn; and 18,000-20,000 tonne of lead-copper-gold-silver concentrate at a grade of 53% Pb, 4.0% Cu, 475 g/t Ag and 7.5 g/t Au.
Terramin has a life of mine offtake agreement with J.P. Morgan Metals & Concentrates LLC for all zinc concentrate production and a 5 year offtake agreement with Nyrstar Sales & Marketing in respect of the lead concentrate.
Oued Amizour Zinc Project, Algeria
The Oued Amizour Zinc Project is 100% owned by Algerian Company Western Mediterranean Zinc Spa (WMZ). Terramin has a 65% shareholding in WMZ, the remaining 35% is held by two Algerian government-owned companies; Enterprise National des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) (32.5%) and Office National de Recherche Géologique et Miniére (ORGM) (2.5%)
Exploration Permit 5225PE is a 125 square km tenement. The Project centres on the 68 million tonne Tala Hamza deposit and contains several lead-zinc prospects with the potential for more discoveries on the project area.
Location The deposit is on the north coast of Algeria on the Mediterranean Sea, 15km from the city of Bejaia. Infrastructure includes an international airport and deep water port. Location benefits include grid power, abundant water and proximity to European zinc smelters.
The Oued Amizour permit area covers 125 square kilometres and includes a number of potential prospects for lead-zinc. The most important is the Tala Hamza deposit which is soon to be in development and is open down dip and laterally. Tala Hamza is a significant project with potential to be one of the top ten zinc mines in the world based on annual production. Capital costs for the development will be low compared to other similar sized projects due to proximity of existing infrastructure. The project is well positioned to provide premium concentrate, low in contaminants, to European smelters.
The Tala Hamza definitive feasibility study (DFS) was completed September 2010 and delivered to our Algerian partners for their review process. On completion of the review process the Board of WMZ will make the decision to mine and submit the required documentation for the mining lease application. The definitive feasibility study determined a Probable Reserve of 38.1Mt at 4.78% zinc and 1.36% lead contained within a global Measure,Indicated and Inferred Resource of 68.6 million tonnes at 5.7% Pb+Zn containing a Measured and Indicated Resource of 51.1 million tonnes at 6.1% Pb+Zn.
Menninnie Zinc Project, South Australia
The Menninnie Zinc Project in South Australia comprises a contiguous group of four tenements owned by Terramin's wholly owned subsidiary, Menninnie Metals Pty Ltd. The tenements are: Menninnie Dam EL3640; the Nonning JV EL3535, where Menninnie Metals can earn up to 70% from Minotaur Operations Pty Ltd; Kolendo EL4285; and the exploration application Taringa, ElA172/10. The tenements include the Menninnie Dam lead-zinc deposit with an Inferred Resource of 3.8Mt @ 7.2% Pb+Zn, and 620 square kilometres of prospective ground in the Gawler Craton.
Menninnie Dam
The Menninnie Dam Project centres on the EL 3640 tenement on the northern Eyre Peninsula in South Australia, about 160km west of the lead smelter at Port Pirie. The project is close to the industrial infrastructure and seaport of Whyalla, the third largest town in South Australia. Terramin has purchased the 76% interest in the Tenement (EL3640) from MMG. The transfer of MMG's interest to Terramin is subject to the Minister for Natural Resources consent. The Menninnie Dam tenement includes an Inferred Resource of 3.8 million tonnes at 3.2% Pb, 4.0% Zn and 34g/t silver at a 3.5% Pb+Zn cut-off, declared at the end of the 2007 season over approximately half the Menninnie Central lode strike length. During 2008, 10,777 metres of drilling was conducted in mineralised areas adjacent to Menninnie Central, and an IP programme totalling 191 line km completed over prospective areas elsewhere in the tenement. Upon completion of the purchase of the 76% interest in the tenement, Terramin will review the exploration plans for the region.
Nonning
The Nonning tenement, EL3535, adjoins the Menninnie Dam tenement on the Northern Eyre Peninsula. Nonning is prospective for similar zinc-lead mineralisation to that of Menninnie Dam. Initial exploration has identified a number of prospective targets. Under the terms of a Heads of Agreement with Minotaur Operations Pty Ltd, Menninnie Metals Pty Ltd can earn up to 70% in EL3535 by expenditure of up to $3 million on the tenement. Menninnie Metals Pty Ltd is the manager of the Joint Venture.
Kolendo
The Kolendo tenement, EL4285, granted to Menninnie Metals Pty Ltd in July 2009, has an area of 208 square kilometres and lies to the west of Nonning. The tenement is considered prospective for Menninnie Dam style lead zinc mineralisation.
Taringa
Terramin has lodged an application for the large Taringa tenement which is located to the north and is contingent with the other tenements in the area. The Company has identified a number of geological concepts and targets on the tenement and will commence working on these when it is granted.
Mine For
Zinc, Lead, Silver, Copper, Gold
Location of operation(s)
Algeria, South Australia
Address
Level 22, Westpac House, 91 King William St
ADELAIDE, SA, AUSTRALIA
Phone
(61 8) 8213 1415
Website
Last Updated
19/01/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
