Hochschild Mining PLC Key Milestone at Inmaculada Advanced Project (5835N)
October 01 2012 - 7:00AM
UK Regulatory
TIDMHOC
RNS Number : 5835N
Hochschild Mining PLC
01 October 2012
1 October 2012
Hochschild Mining Achieves Key Milestone at Inmaculada Advanced
Project
Highlights
-- Environmental Impact Study approved by Peruvian
government
-- Strong intercepts reported at Lourdes and Martha veins
Hochschild Mining plc ("Hochschild" or "the Company") is pleased
to announce that the Peruvian government has approved the Company's
Environmental Impact Study ("EIS") for the Inmaculada Advanced
Project located in southwestern Peru, representing a key step in
the project's permitting process. Inmaculada is expected to produce
7 million attributable silver equivalent ounces per annum with
commissioning on track for the end of 2013.
The achievement of this approval follows the considerable
progress made during 2012 in several other stages in Inmaculada's
development including the awarding of the contract for the plant
construction to Graña y Montero in August ($142 million) within the
Company's budget expectations, the commencement of construction of
three exploration tunnels, the granting of contracts for the
construction of the main access road to the site as well as
construction of the electricity transmission line.
Hochschild is also pleased to report that its exploration
drilling programme in and around the Inmaculada project has
continued to yield extremely encouraging results such as those
detailed below (and shown in the diagram at the end of this
release) from the Lourdes and Martha veins. These reinforce the
Company's confidence that significant additional resources can be
added beyond those Measured & Indicated resources included in
the Feasibility Study which came principally from the Angela vein.
Significant intercepts include:
Vein Results
-------- -------------------------------------------
Lourdes LOU12-001: 3.50m @ 7.12g/t Au & 369g/t
Ag
LOU12-003: 1.32m @ 3.10g/t Au & 121g/t
Ag
LOU12-004: 1.50m @ 6.34g/t Au & 180g/t
Ag
LOU12-005: 1.02m @ 8.21g/t Au & 194g/t
Ag
LOU12-007: 0.80m @ 3.49g/t Au & 398g/t
Ag
LOU12-009: 3.12m @ 31.55g/t Au & 199g/t
Ag
LOU12-010: 0.60m @ 7.85g/t Au & 106g/t
Ag
-------- -------------------------------------------
Martha MAR12-001: 0.60m @ 6.57g/t Au & 30g/t
Ag
MAR12-004: 0.73m @ 24.12g/t Au & 2,611g/t
Ag
-------- -------------------------------------------
Commenting on the announcement, Ignacio Bustamante, CEO,
said:
"Securing approval of the EIS represents a major milestone as we
make continued progress in developing Inmaculada with a view to
commencing production in Q4 2013. I am confident that, having
obtained the EIS and awarded key contracts within budget and on
schedule, we can maintain the momentum as we enter the next phase
of the project. We previously highlighted the exploration potential
surrounding the main Angela vein and so I am delighted to be able
to share today details of the rich intercepts at the Lourdes and
Martha veins. These provide further evidence of our belief in the
significant geological upside at Inmaculada which we expect will
exceed the conservative assumptions used in the project's
feasibility study."
___________________________________________________________________________
Enquiries:
Hochschild Mining plc
Charles Gordon +44 (0)20 7907 2934
Head of Investor Relations
RLM Finsbury
Charles Chichester +44 (0)20 7251 3801
Public Relations
___________________________________________________________________________
About Hochschild Mining plc
Hochschild Mining plc is a leading precious metals company
listed on the London Stock Exchange (HOCM.L / HOC LN) with a
primary focus on the exploration, mining, processing and sale of
silver and gold. Hochschild has almost fifty years' experience in
the mining of precious metal epithermal vein deposits and currently
operates four underground epithermal vein mines, three located in
southern Peru and one in southern Argentina. Hochschild also has
numerous long-term projects throughout the Americas.
Inmaculada Project
Inmaculada is a 20,000 hectare gold-silver project located in
the Company's existing operational cluster in southern Peru and is
60% owned and controlled by Hochschild, following the acquisition
of a controlling stake in October 2010. The remaining 40% is held
by the Company's joint venture partner at Pallancata, International
Minerals Corporation.
The project is now set to start construction, with total initial
capital expenditure of $315 million for a 3,500 tonne per day
underground operation with average annual production of 12 million
silver equivalent ounces (7 million attributable silver equivalent
ounces), and is due to be commissioned in Q4 2013. The Company is
also progressing with the exploration programme at the property
which consists of 40 mining concessions with resources which are
currently estimated at a total of 150 million silver equivalent
ounces
Inmaculada Vein Diagram
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view the associated PDF document.
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