A$11 million to accelerate Algerian zinc project

A placement to institutional investors has raised A$11 million for Terramin Australia as this emerging zinc producer works to accelerate development of its flagship projects in Algeria and South Australia. Proceeds raised will be used for working capital, and in particular to fund:

  • Rapid advance of the infill diamond drilling and prefeasibility programme underway at the Oued Amizour zinc project in Algeria
  • Key mine infrastructure including the electricity substation for the Angas zinc project, south of Adelaide, and due to commence production late next year.

In Algeria, drilling of the +50 Mt Tala Hamza zinc deposit within Terramin Australia’s 65%-owned Oued Amizour zinc project is accelerating to allow an estimation of JORC resources early in 2007. “The data from 40 diamond drill holes drilled up until 1994 by ORGM (the Algerian Government exploration agency) and which defined the deposit, is reported to be of high standard so JORC compliance should be achieved soon,” Terramin’s Managing Director, Dr Kevin Moriarty, said. “Under a drilling programme to confirm the ORGM data, the third hole is currently near completion, the first hole which had to be abandoned after entering high grade mineralization, will be redrilled, and the second hole, TH002, intersected 180 m of mineralization from 321 m depth,” Moriarty said.

“The TH002 mineralised core is on the way to Australia for assaying. The drill programme will then continue to close up the spacing to 40-50 m with infill holes between the 40 ORGM holes to enable estimation of reserves. The accelerated programme will employ a new third heavy duty rig to concurrently test the deposit’s extension southwards where mineralisation has been intersected over several kilometres.”

Terramin has assessed Oued Amizour’s potential at a start-up 200,000 t/y, increasing to 400,000 t/y of zinc concentrates for Spanish and Sardinian smelter customers in nearby Europe. Terramin Australia has budgeted to spend up to $6.5 million for the feasibility programme, leading to a possible decision to mine by 2008.