Terramin boosts Algerian prospect to 55 Mt

Terramin Australia has announced a maiden JORC compliant resource estimate for its Algerian zinc-lead deposit – almost double earlier estimates. The resource in the Tala Hamza deposit is now estimated at 55 Mt at 5.0% Zn and 1.2% Pb using a cutoff of 2.5% Zn, 83% higher than the original (non JORC) estimate of 30 Mt.

Terramin’s Executive Chairman, Dr Kevin Moriarty, said the estimate, prepared by Golder Associates, was an Inferred mineral resource because it was largely based on earlier drill results from the Algerian Government’s exploration arm, ORGM. “Golder Associates made its estimate on the basis of assay results from 30 diamond core drill holes completed by ORGM and four diamond core holes drilled by Terramin,” he said. “When Terramin completes this stage of its drill programme in September, we expect to be able to estimate an Indicated resource for the Tala Hamza deposit. Terramin’s recent assay results show that the previous work by ORGM underestimated the lead content. Our recently reported intercepts showing up to 90% improvement in grade means we expect that the grade of both zinc and lead in this first JORC resource will increase as our programme advances.

“Many of the older holes did not reach the base of the mineralization and so the full depth extent is not known. The deposit is also open to the south, where recent announcements reported additions of more than 30 m of the high grade (>12% Pb+Zn) mineralization beneath the previous drilling.

“There is potential for a substantial increase in the size of this deposit as we move south and west towards outlying holes that intersected good mineralization. These drill holes are hundreds of metres beyond the current boundary of the deposit” he said. “The grade is highest in the southern part of the resource so drilling will focus on this area since it could deliver the best start for the mine.”

Using a 5.0% Zn cutoff to define the size of the high grade resource, Terramin has estimated 20 Mt at 7.2% Zn and 2.0% Pb within the global resource, but expects this will increase as new holes are available for estimation. Terramin holds 65% of the Oued Amizour project through WMZ SpA.