Hochschild Mining PLC Inmaculada Receives Final Mill Construction Permit (4795O)
September 20 2013 - 2:00AM
UK Regulatory
TIDMHOC
RNS Number : 4795O
Hochschild Mining PLC
20 September 2013
20 September 2013
Hochschild Receives Final Mill Construction Permit for
Inmaculada Project
Highlights
-- Inmaculada mill construction permit approved by Peruvian government
o Production on track to commence in Q4 2014
o Exploration ongoing to access significant upside potential
o Profitable project at conservative price assumptions
o Inmaculada expected to be Hochschild's lowest cost
operation
Hochschild Mining plc ("Hochschild") is pleased to announce that
the Peruvian government has approved the mill construction permit
for its 60% owned Inmaculada Advanced Project. This represents
completion of the final stage of the project's construction
permitting process with commissioning on track for Q4 2014.
The processing plant is now set to start construction, with the
project's total initial capital expenditure maintained at $370
million for a 3,500 tonne per day underground operation with total
average annual production of 12 million silver equivalent ounces
from the single "Angela" vein. The project, which is located close
to Hochschild's other operations in the south west of Peru is set
to be the Company's lowest cost operation and will also require no
additional central administration cost.
Exploration is also progressing at the property which consists
of 40 mining concessions with Measured and Indicated resources that
are currently estimated at almost 90 million silver equivalent
ounces. Hochschild strongly believes that the mineable resource
base will be expanded significantly by upgrading the inferred
mineral resources in the South West and North East extensions of
the Angela vein into the reserve category through additional
definition drilling work. In addition, the Inmaculada district
hosts over 25 kilometres of gold/silver-bearing quartz veins of the
low sulphidation type which remain largely untested.
Ignacio Bustamante, Chief Executive Officer commented:
"I am delighted to report that we have received the necessary
mill construction permit from the Government of Peru, as expected,
and can now proceed with the final key construction stage of our
flagship growth project. This is in line with our projected
schedule and we expect construction of the plant to commence
immediately with commissioning on track for the fourth quarter of
2014 and the project set to deliver 7 million attributable silver
equivalent ounces per annum.
I am also confident that the resources will grow significantly
from the current excellent starting point in the same manner as our
Arcata, Pallancata mines in Peru and San Jose in Argentina and see
Inmaculada develop into one of our most important operations".
______________________________________________________________________
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.
Project construction is ongoing, with total initial capital
expenditure of $370 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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