TIDMORM
RNS Number : 4679A
Ormonde Mining PLC
12 September 2018
12 September 2018
Ormonde Mining plc
("Ormonde" or "the Company")
Barruecopardo Tungsten Project Update
The Board of Ormonde ("the Board") is pleased to provide an
update on the Barruecopardo Tungsten Project in Salamanca, Spain
("Barruecopardo" or "the Project"), where construction is
well-advanced and commissioning activities have commenced.
Key progress updates include:
-- The Project team achieved a major milestone during August
with the commencement of commissioning of the turnkey crush and
screen plant, the first trial of waste rock through the primary
crusher having been successfully carried out;
-- The construction of the rest of the crush and screen circuit
is complete, and installation of the associated electrical
circuitry is presently in progress and due for completion by the
second half of September;
-- Initial commissioning of the water treatment plant has also
been carried out, and will continue on the imminent completion of
the water management system pipework and pump installation to feed
water from the old open pit;
-- The installation of major equipment and structures at the
process plant is also well-advanced;
-- Process plant commissioning is now expected to commence at
the start of December, a number of weeks later than originally
envisaged; plant commissioning is then expected to run through into
January 2019, with first production of tungsten concentrates from
the beginning of February;
-- 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:
"It is very pleasing to have achieved another major project
milestone during the quarter, with the on-target commencement of
commissioning of the crush and screen plant and the water treatment
plant, taking the Project into its mine commissioning phase. This
major advancement accompanied progress on the construction of the
process plant where most of the major equipment has been installed
and structural works are well advanced.
"The commissioning of the process plant is now due to commence
in early December, slightly later than originally planned, with
first tungsten expected to be produced from early February 2019, to
commence a new secure supply to the global markets."
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:
The construction of the turnkey crush and screen plant is
complete, with only electrical circuitry remaining to be finalised,
such that by the second half of September commissioning of the
entire crushing circuit will commence.
At the process plant, the installation of major equipment and
structural installation are 70 per cent completed: jigs, cyclones,
spirals, hydrosizer, shaking tables, mills, concentrate thickeners,
concentrate dryer and cooler, tailings dewatering screens, fines
thickener and filter press are all fully installed or in position.
However, a number of factors including detailed engineering,
equipment delivery and contractor scheduling have combined towards
the latter stages of the project to delay the completion of some
installations such as the preconcentration screen structure,
process piping and electrical works, when compared to the original
June 2017 construction schedule.
In the meantime, details such as walkways, the process plant
control room, external cladding, roofing, and water tanks are well
advanced. Other developments in hand include the installation of
the water management system pipework, and completion of site
services and infrastructure, including the site laboratory, canteen
and changing rooms. The underground High Tension ("HT") powerline,
the main HT substation and yard, and the Medium Tension electrical
ring main have all been installed.
Commissioning:
The Project team achieved a major milestone during August with
the commencement of initial commissioning of the primary crusher.
To-date, several hundred tonnes of waste rock have been
successfully fed through the crusher and conveyed to the coarse ore
stockpile for use in commissioning the rest of the crush and screen
circuit during the second half of September. This will be the focus
of the commissioning program while the process plant is being
completed.
Initial commissioning of the water treatment plant has been
carried out, and will be finalised on the imminent completion of
the water management system pipework and pump installation to feed
water from the old open pit.
Commissioning of the process plant is now due to commence at the
start of December (compared to previous guidance of end-September).
The current commissioning plan sees first production of tungsten
from the beginning of February 2019.
Tungsten Market:
The Board notes that APT tungsten prices have seen a period of
weakness over the last couple of months, with prices reducing from
US$352 per metric tonne unit ("mtu") in late June to a current
range of US$275-290 per mtu. This correction appears to be
attributable to a combination of Chinese APT smelters coming back
online following closures related to environmental inspections, and
traditional weak trading demand during the summer period. Despite
this short-term variability, the Board remains of the view that
supply-demand fundamentals will continue to support prices over the
medium to long term.
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 development 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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END
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