Last checked at 20 Sep 2013 07:00
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".
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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
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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