speculative buy. target price 2.45 sha

Terramin (TZN) - $1.80. Speculative Buy. Target price $2.45/share



§ After having resubmitted the MARP in December, TZN is still awaiting final approvals from the South Australian government for go-ahead on the Angas project. There are, however, a clear series on milestones and timelines to be met within the government bureaucracy and TZN anticipates approval by the end of February at the latest. Meanwhile, the site contractor is largely mobilised with most of the mining-related, heavy-equipment already on site.

§ The appointment of Investec as lead financier for Angas had previously been announced and the bank is currently undertaking credit review, with approval expected in early February.

§ Drilling is progressing well at Oued Amizour in Algeria with a second, more powerful drill rig now on site. The current program is largely confirmatory, before moving into infill and expansion phases. Four holes have been completed thus far and the first set of assays (from hole TH002) appear to confirm historical drilling. The last hole (TH004) was drilled alongside a historical drill hole to verify the accuracy of earlier drilling. First results from preliminary metallurgical test work are expected in March.

§ The site has been bolstered by new staff and equipment and consultants Golders & Associates and Worley Parsons Komax have been on site and submitted their initial reports.

§ Recent share price weakness appears to be broadly across the zinc sector. ZFX yesterday made some commentary on the zinc market, stating that it expected stocks to remain tight but that concentrate was more readily available than it was this time last year, i.e., the deficit is easing.