Tala Hamza Zinc Project

The Tala Hamza Zinc Project («Projet») est la propriété de la Méditerranée occidentale Zinc Spa (WMZ), a joint venture vehicle to develop the Project between Terramin and Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF). Terramin holds a 65% participation dans WMZ, with the remaining 35% held by two Algerian government-owned companies: (32.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%).

The Project is located on the Mediterranean Sea, 15km from the regional city of Béjaia. The city of Béjaia provides extensive infrastructure including an international airport and deep water port. Emplacement avantages comprennent le réseau électrique, eau abondante et la proximité des fonderies de zinc européennes.

Hamza Lieu tala

Tala Hamza projet

Le dépôt de Tala Hamza détient une ressource de 68.6Mt (Mesuré, Indiquées et présumées) à 4.6% zinc et 1.2% conduire à une coupure de 2.5% équivalent de zinc (inclusive de réserves probables). Le dépôt est situé dans la zone de Oued Amizour permis qui couvre 125 kilomètres carrés et comprend un certain nombre de perspectives supplémentaires potentiels pour le plomb-zinc et le cuivre.

The Project is significant with potential to be one of the top ten zinc producers in the world. Le projet est bien placée pour fournir zinc prime et concentré de plomb, peu polluants, aux fonderies européennes.

Terramin a conclu un accord de coopération technique avec (Ingénierie des Affaires étrangères de la Chine métaux non ferreux, de l'Industrie et Construction Company (NFC) dans 2013 under which NFC undertook a technical and financial assessment of mining methods for the Project and presented its findings to the joint venture partners. Suite à cette présentation, Terramin et ses partenaires ont officiellement accepté d'avancer une méthode d'extraction préféré par DFS qui s'appuie sur la modélisation préliminaire, devrait être économiquement et techniquement viables.

At the end of 2014, Terramin and NFC updated the feasibility study on the development of the Project on the basis of the mining method agreed with its joint venture partner.

ENOF and the Algerian government have completed their review of the revised feasibility study and the parties attended a technical workshop in mid-May 2015 to discuss the outcomes and recommendations of that revised feasibility study.

The partners generally agreed that the revised feasibility study, in its current form, is positive, meets the objectives and expectations of the partners and provides a strong basis to move towards a decision to mine. Some additional work as proposed in the revised study, has been agreed to add important data before a decision to mine can be taken by the joint venture partners. This additional work which relates to the hydrology, geotechnical data, mining infrastructure and tailings is generally of a nature that is often performed at the mine design preparation stage. Cependant, in certain jurisdictions, including Algeria, government organisations and regulators require that such work be performed at feasibility stage.

Following this workshop, Terramin and NFC developed a work plan which was presented to and discussed with ENOF during the board meeting of WMZ in June 2015. This work programme was generally approved by the board of WMZ.

Further, and with agreement of the joint venture partners, WMZ has initiated the renewal process of the exploration licence with the Algerian regulator on the basis of the work programme presented to the WMZ board.

The work programme will aim to complete the final aspects of the study in the coming months and proceed with a decision to mine as soon as possible thereafter.

Du point de vue de l'exploration du gisement de Tala Hamza continue également d'offrir un potentiel de hausse, en particulier dans le sud où le forage a montré le dépôt était de grade plus épais et plus élevé que prévu. Le dépôt est actuellement ouvert et non testés dans le sud, alors il reste aussi un potentiel au nord et à l'est.

En outre, the area covered by the Oued Amizour permit area hosts a number of other deposits which have not been fully explored which could provide some significant upside to the Tala Hamza project once operating.