TIDMORM
RNS Number : 4551K
Ormonde Mining PLC
14 December 2018
14 December 2018
Ormonde Mining plc
("Ormonde" or "the Company")
Barruecopardo Tungsten Project: Construction and Commissioning
Update
The Board of Ormonde ("the Board") is pleased to provide an
update on the construction and commissioning of the Barruecopardo
Tungsten Project in Salamanca, Spain ("Barruecopardo" or "the
Project"), where the Company holds a 30% interest.
The development schedule has progressed in line with previous
guidance of first production of tungsten concentrates from the
beginning of February 2019. Key progress includes:
-- Crush and Screen Plant commissioning nearing completion;
-- Process Plant:
o Installation of equipment and supporting structures almost
complete;
o Pipework and low voltage electrical installations very
advanced;
o Commissioning of some circuits has commenced.
-- Water Management System:
o Water treatment plant commissioning complete;
o Dewatering of the historic pit is ongoing with over 100,000
cubic metres pumped from the pit to the water dams (approximately
10% of the historic pit water content).
-- Open pit mining contract awarded and mobilisation of mining equipment underway;
-- Key operations staff recruited, and first tranche of plant
operators recruited and in training;
-- Projected construction costs remain within the Project's
Construction Budget of EUR53.6 million;
-- Recent site photos of the construction activity can be seen
on Ormonde's website at the following link
http://ormondemining.com/timeline-in-pictures/.
Michael Donoghue, Ormonde's Chairman and Interim Managing
Director, commented:
"With substantial progress made on construction activities
during the quarter, the Project has now entered a transition period
as construction activities begin to wind down and mine
commissioning activities ramp up significantly. It is particularly
pleasing to have recently completed the recruitment of the first
wave of plant operators, and to see the commencement of process
plant commissioning.
"I would like to praise the hard work and professionalism of the
site team and contractors as they continue to progress the Project
through this busy commissioning period. The Project schedule
remains in line with previous guidance, with the production of
first tungsten concentrates targeted for early February 2019."
Enquiries to:
Ormonde Mining plc Tel: +353 (0)1 8014184
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer
Davy (Nomad, ESM Adviser and Joint Broker)
John Frain Tel: +353 (0)1 6796363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat Tel: +44 (0)20 34700470
Capital M Consultants
Simon Rothschild Mob: +44 (0)77 03167065
Murray Consultants
Mark Brennock Tel: +353 (0)1 4980300 Mob: +353 (0)87 2335923
Details
Construction and Commissioning:
Significant advancements have been seen in both construction and
commissioning during the quarter. Construction of the turnkey crush
and screen plant was completed in September, with "cold"
commissioning completed during October and "hot" commissioning
currently ongoing.
At the process plant, recruitment and training of plant
operators together with significant advancements in plant
construction have allowed the commencement of process plant
commissioning, in line with previous guidance.
Water treatment plant commissioning has been completed and the
plant has been handed over to the site team. Dewatering of the
historic open pit is in progress (pit dewatering is not required to
be completed for a number of months), with 100,750 cubic metres of
the historic pit waters (approximately 10% of the total contained
historic pit waters) pumped out for treatment and use in the
process plant. At the end of November, around 185,000 cubic metres
of water was held within the water dams.
In addition, mains power has been connected and the site
laboratory is operational. Training of key personnel in the process
plant has been ongoing, and the first tranche of the main plant
workforce recruitment has completed, with around 20 plant operators
and maintenance personnel already employed. With construction teams
winding down and operating teams being ramped up during this
transition phase, total people on site currently number 180, with
39 of these being from the local area.
The current commissioning plan sees first production of tungsten
from early February 2019, in line with existing guidance.
The open pit mining contract has been awarded to one of the
largest open pit mining contractors in Spain, with worldwide
operations. Mobilisation of their mining equipment to site is
ongoing.
Tungsten Market:
The Board notes that APT tungsten prices have been flat over the
period since September, with a current range of US$275-290 per
metric tonne unit. Thin trading on the one hand and tight supply on
the other appear to be keeping the market in its current range,
while it seeks direction against broader financial and commodity
market uncertainties. The Board remains of the view that
supply-demand fundamentals will continue to support prices over the
medium to long term as Barruecopardo enters production.
Notes:
This announcement includes certain statements that may be deemed
"forward-looking statements". Although the Company believes the
forward-looking statements are based on reasonable assumptions,
such statements should not be in any way construed as guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements.
Risk factors are typical of a mining project during development,
commissioning and operation, and include (but are not limited to):
the availability and / or delivery of equipment and contractor
services to complete mine construction on schedule and on budget;
plant performance during and after commissioning; rates of metal
recovery in the process plant; mined ore tonnages and grade in
comparison to estimated ore reserves; cost overruns and the
potential for future additional funding requirements; and tungsten
concentrate sales prices.
Barruecopardo is a fully permitted and funded mining project
currently being developed through a US$99.7 million funding package
agreed with Oaktree Capital Management (70% interest). Ormonde's
participation in the Project is held through its 30 per cent
minority interest in Barruecopardo Joint Venture BV, a company
which is governed by a Shareholder Agreement between Ormonde and
its partner which provides for certain rights and obligations for
each party.
For more information, visit www.ormondemining.com
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contact rns@lseg.com or visit www.rns.com.
END
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