Modern Mining September 2018

ZINC/LEAD

Updated DFS points to strong returns from Algerian project ASX-listed Terramin Australia, through its subsidiary,

reduce to an acceptable level, environmental and social concerns with the block cave min- ing method. This method would have resulted in a large surface depression and increased water management requirements, both of which were deemed by regulators not to be appropriate for the Bejaia area. The changes include optimisation of pre- vious studies, updating the ore reserve, a new mining method, a revised plant layout, removal of the tailings storage facility and replacement with dry stacking, and updated economic analysis. The new mining method, Underhand Drift and Fill (UDF), is a small scale, selective min- ing method which has a higher associated mining operating cost compared to the origi- nally preferred block cave mining method. The adoption of the new mining method has increased the mine cut-off grade and reduced mining dilution, overall resulting in a net reduction in minable ore tonnes over the life of mine (LoM). Updated flowsheets, capital and operat- ing costs, completed in conjunction with

WesternMediterranean Zinc Spa (WMZ), has completed an updated Definitive Feasibility Study (DFS) for the develop- ment of the Tala Hamza-Amizour (Tala Hamza) zinc and lead project in Algeria. The DFS indicates that the project – with the potential to produce an average of 129 300 tonnes per annum (t/a) of zinc concentrate and 26 000 t/a of lead concentrate froman undergroundmining operation – would deliver strong financial returns over a 21-year mine life.

T ala Hamza is located near Bejaia in northern Algeria, approximately 270 km east of Algiers. The up- dated DFS covers a zinc and lead deposit in the area of the Oued Amizour Mining Exploration Permit 6911 (PEM 6911), an area of 122,76 km 2 held by WMZ. Exploration Permit 6911 expired 31 Jan- uary 2018 and is expected to be superseded by a Mining Licence (ML). The 2018 DFS contains a number of changes to the 2010 DFS which will eliminate, or

22  MODERN MINING  September 2018