Terramin Australia (ASX:TZN) can now start construction on its Tala Hamza Zinc Project after completing the acquisition of the land covering the entire footprint of the mining permit in Algeria.
This follows the issue of an Executive Decree of Public Utility, which is considered an important stepping stone for the Tala Hamza Project as it triggers the process for the acquisition of the land by the government.
On 18 May 2023, Terramin was granted the mining permit for the project by the Algerian mining regulator, which means that the company has satisfied all Algerian regulatory, financial, and environmental requirements and can now proceed towards development of the Tala Hamza Project.
The permit allows for the mining and processing of 2 million tonnes per year of ore, instead of the 1.3 million tonnes per year anticipated in a Definitive Feasibility Study completed in 2018.
Terramin says the increased tonnage enhances the project returns over the anticipated 20+ year mine life.
The emerging producer, which has a market capitalisation of $88.89 million, says completing the land acquisition has given Tala Hamza operator Western Mediterranean Zinc Spa full and free access to the entire mining permit area to begin construction works for the project.
The newly acquired land, covering 234 hectares, will support all of the project’s mining and processing operations, and will provide direct ramp access to a highway that leads directly to the Port of Bejaia.
Executive Chairman Bruce Sheng says securing access to the land defined by the Tala Hamza mining permit is a “significant milestone”.
“Terramin is highly appreciative of the hard work and continued support of our Algerian partners and the Algerian Government,” Sheng says.
“We are passionate for the future of this world-class project.”
Following yesterday’s (14 October) announcement, Terramin’s share price increased 16.67% to $0.049 to close trade on the ASX.
Terramin previously said that additional upside exists within the Tala Hamza deposit, which remains open to the east and southeast, offering potential to expand production.
The Tala Hamza district is considered heavily mineralised and there are numerous nearby under-explored zinc targets in vicinity to the mining permit, providing exploration upside.
The Tala Hamza Project lies on the Mediterranean coast of Algeria, 15km from the port city of Bejaia. Terramin says it will become one of the ‘largest’ developing zinc and lead deposits in the world.
Terramin Australia is a base and precious metals explorer. The company holds an interest in exploration projects in Australia and Algeria.
Write to Aaliyah Rogan at Mining.com.au
Images: Terramin Australia
