25 Nov 2019 07:00
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