Modern Mining September 2018

ZINC/ LEAD

A drill site at the Tala Hamza project.

reliable energy and an educated workforce, make this a potential world class project. “Getting the base case project at Tala Hamza permitted opens up optionality for expansion

engineering company China ENFI Engineering Corp (ENFI), confirm the viability of an under- ground operation with a 1,4 Mt/a capacity process plant (utilised at the rate of 1,32 Mt/a), which can deliver an average of 129 300 t/a of zinc concentrate at 54 % Zn (90 % recovery) and 26 000 t/a of lead concentrate at 63 % Pb (73 % recovery), at an average C1 cash cost of US$0,53/lb and All-in Sustaining Cost (AISC) (including royalty) of US$0,61/lb. Financial analysis of the project economics, based on metal prices averaging US$1,25/lb zinc and US$1,05/lb lead, indicates the base case project generates a strong financial return, with a post-tax nominal NPV (8 %) of US$303 million and an IRR of 14 %. Total pre-production capital for the proj- ect is expected to be US$341 million. Total LoM capital inclusive of pre-production capital and sustaining capital is estimated at US$486 million. Commenting on the DFS at the recent Paydirt ‘Africa Down Under’ Conference in Perth, Terramin Australia CEO Richard Taylor said: “Terramin is excited to be able to release details of the Tala Hamza revised DFS. The result is the outcome of steady and patient negotiation with our joint venture partners. It was important to engage and work consistently with our coun- terparts to ensure a robust long-life project that will be a flagship project in Algeria. “Location is everything with Tala Hamza – proximity to deep water Mediterranean ports, well developed infrastructure, cheap and

Tala Hamza is strategically located close to the port city of Bejaia in northern Algeria.

Inspecting drill core at Tala Hamza.

September 2018  MODERN MINING  23