Ormonde Mining PLC Operational Update (4448U)
November 25 2019 - 2:00AM
UK Regulatory
TIDMORM
RNS Number : 4448U
Ormonde Mining PLC
25 November 2019
25 November 2019
Ormonde Mining plc
("Ormonde" or "the Company")
Tungsten Concentrates Sales at Barruecopardo
Ormonde is pleased to report an update on tungsten concentrate
sales by Saloro S.L.U. ("Saloro"), the operator of the
Barruecopardo Tungsten Mine ("the Mine") in Salamanca, Spain, in
which Ormonde holds a 30% joint venture interest.
Sales of 20-tonne tungsten concentrate shipments to
international buyers have been recently concluded, with further
containers being prepared for imminent sale. These sales mark an
important milestone for the Mine as it continues its ramp-up phase.
The Mine is designed to produce 260,000 metric tonne units (or
2,600 tonnes) of tungsten trioxide contained in concentrate per
year when ramp up is complete and the Mine is in full
production.
On mining progress, initial access to the south end of the main
orebody, which had been anticipated early in the fourth quarter,
has been delayed due to the discovery of old, backfilled,
undocumented mine workings within the southern starter pit, where
high grade tungsten mineralisation had been expected. Current
mining has reached the base of these workings at their southern end
and ore grades from this initial exposure of the main ore-zone are
now expected to improve accordingly. As mining advances northwards,
the ore depletion arising from the old workings will continue to
have an impact on ore feed grades until mining reaches the
continuous section of the high grade main orebody below the
historic pit, which is proven by drilling.
In this regard, there continues to be a strong emphasis on the
waste stripping of the east wall cutback to facilitate access to
the full strike extent of the main orebody. Saloro's mine plans are
being updated to reflect the current mining situation.
Michael Donoghue, Ormonde's Chairman and Interim Managing
Director, commented:
"The completion of initial tungsten concentrate sales from the
Barruecopardo Tungsten Mine to international buyers represents an
important milestone for both Saloro and Ormonde. The commencement
of related revenues is a positive for Saloro and the mine and these
are expected to ramp-up as the transition into the main orebody
continues over the coming period. "
Enquiries:
Ormonde Mining plc
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer
Tel: +353 (0)1 8014184
Davy (Nomad, Euronext Growth Advisor and Joint Broker)
John Frain / Barry Murphy
Tel: +353 (0)1 6796363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat
Tel: +44 (0)20 3 470 0470
Capital M Consultants
Simon Rothschild
Mob: +44 (0)77 03167065
Murray Consultants
Mark Brennock
Tel: +353 (0)1 4980300
Mob: +353(0)872335923
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 operation, and include (but
are not limited to): the availability and / or delivery of
equipment and contractor services; plant performance; 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 has been developed through a funding package
agreed with Oaktree Capital Management (70% interest). Ormonde's
participation in the Mine is held through its 30 per cent minority
interest in Barruecopardo Joint Venture BV, a company which is
governed by a Shareholder Agreement which provides for certain
rights and obligations for each party. The Mine is operated by
Saloro S.L.U., a Spanish incorporated subsidiary of Barruecopardo
Joint Venture BV.
For more information, visit www.ormondemining.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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