Mine decision within a monthBrooke DuBoisThursday, 16 March 2006...

Mine decision within a month
Brooke DuBois
Thursday, 16 March 2006

STRATHALBYN - Within a month, citizens of Strathalbyn and others with interest in Terramin Australia's proposal to establish a zinc mine near the town, will find out whether or not the company plans to go ahead with the mine.
Terramin Australia has announced that it has commenced its final feasibility report for the Angus zinc mine, as all pre-feasibility studies have been completed.

"This is a significant milestone in itself, as pre-feasibility work encompasses a broad range of technical, environmental and operational considerations," Terramin's Executive Chairman, Dr Kevin Moriarty said.

"The reports are now being incorporated into the final feasibility report which we expect, along with the project's financial modeling, to be available this month," Dr Moriarty said.

"At this juncture, operating costs are on target with the pre-feasibility projections, but, as foreshadowed, some escalation in capital and construction costs can be expected from the prevailing higher steel and labour costs."

"Directors are confident these impacts will be offset by the current environment of high zinc prices and precious metal credits," he said.

Dr Moriarty believed the company's studies have suggested that a mine would generate at least seven years of profitable mining and processing.

Terramin Australia also announced it would spend a further $500,000 to diamond-drill an offshot of the current mineralisation, which it hoped would increase the life span of a mine.

As the State government is somewhat in limbo until the results of this weekend's election are tallied, a decision regarding Terramin Australia's application for a mining lease cannot yet be made, although Dr Moriarty hoped it would be made in March.


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