HIGHLIGHTS
- The Tala Hamza deposit has a Mineral Resource of approximately 53Mt (at a cut off of 3.0% Zinc Equivalent (Zn.eq) including an Indicated Resource of 44Mt. Total Material Mined at a project evaluation cut-off grade of 3.5% Zn.eq is 37Mt at 6.0 % Zn and 1.6% Pb.
- A 20-year life of mine with a nominal production rate of 2.0 million tonnes per annum (Mtpa), producing an approximate average of 178ktpa of zinc concentrate at 51% zinc and 33ktpa of lead concentrate at 58% lead, peaking at 215ktpa zinc and 40ktpa lead concentrate.
- Tala Hamza Zinc Project generates a strong financial return, with a pre-tax nominal 1 NPV (8%) of approximately A$1,130 million (US$790 million)2 and IRR 24%.
- Total pre-production capital for the project is expected to be ~US$415 million. Total Life of Mine capital, inclusive of pre-production capital and sustaining capital, is expected to be ~US$455 million; Operating costs are competitive by world standards. The C1 cash cost, including all operating costs and excluding royalties, rehabilitation and capital expenditure, is estimated to be US$0.56/lb payable Zn with an All-in Sustaining Cost (AISC) of US$0.61/lb3 .
- Early works are underway with all relevant approvals in place, including the grant of the Mining Permit
- The acquisition of the land has been completed, with all affected residents being relocated.
- The arrangement of a significant debt funding package from a major Algerian government bank is nearing completion.
- The deposit remains open to the east and southeast, allowing for potential production expansion and increased mine life.
1 Where nominal values are noted, costs and revenues are in 2025 dollars escalated at 2% p.a.
2 Unless otherwise noted, values are in real 2025 US dollars
3 Cost/lb are payable Zn, nett of by-product credits
Executive Summary
Terramin Australia Limited (Terramin or the Company), through the joint venture company, Bejaia Zinc & Lead Spa (BZL) (formerly Western Mediterranean Zinc Spa), has completed an updated Mining study for the development of the Tala Hamza Zinc Project (Tala Hamza or the Project) near Bejaia in northern Algeria.
The updated Mining Study covers a zinc and lead deposit in the Mining Permit 6911 (PXM 6911), an area of 234 hectares held by BZL. The most significant change from the 2018 DFS, which constitutes a material change to the previously released study to the ASX on 29 August 2018, was the increase in Project throughput from 1.32 mtpa to 2.0 mtpa, accompanied by a reduction in the mining cutoff grade.
Updated flowsheets, capital and operating costs, confirm the viability of an underground operation with a 2.0 mtpa capacity process plant, which can deliver an approximate average of 178ktpa of zinc concentrate at 51% Zn (88% recovery) and 33ktpa of lead concentrate at 58% Pb (68% recovery), at an average C1-cash cost of US$0.56/lb and All-in Sustaining Cost (AISC) (including royalty) of US$0.61/lb.
Early works have commenced following the finalisation of the land acquisition and the successful relocation of the affected residents. These activities include site access, clearing works, and geotechnical drilling.
Negotiations are at an advanced stage with respect to the establishment of a significant debt facility with a major Algerian Government bank.
Tala Hamza has been formally registered with the Algerian Investment Promotion Agency (AAPI). This registration secures a range of investment incentives and formalises key government support measures for project development. Registration with AAPI provides access to a suite of incentives, including:
- Exemption from corporate tax for up to 7 years, with potential extension
- Exemption from VAT and customs duties during construction
- Provision of key infrastructure, including high voltage electricity and access roads
- Access to concessional financing support and government-supported funding frameworks
Terramin's Executive Chair, Bruce Sheng, commented:
“The updated Mining Study confirms the strong economics of a significantly expanded Tala Hamza Zinc Project, now scaled to 2.0 mtpa throughput.
With all major approvals secured and early works already underway, the Project is firmly advancing into development.
Tala Hamza benefits from exceptional infrastructure, including close proximity to a deep-water port, reliable and affordable power, and access to a skilled local workforce, positioning it as one of the most compelling zinc-lead development opportunities globally.
We are grateful for the continued support of the Algerian Government and our local partners, who remain instrumental in bringing this nationally significant project to life.”
Read the full ASX Announcement here: Tala Hamza Zinc Project Algeria Revised 2.0 Mtpa Mining Study
Find out more about Terramin Australia here: Terramin Australia Limited (ASX:TZN)
About us:
Terramin Australia Limited engages in the exploration, evaluation and development of base and precious metal projects.
Terramin has a clear focus on growing a production pipeline of base and precious metal projects close to infrastructure and with low capital and operating costs. Consistent with this focus, the Group holds several highly prospective mineral deposits and exploration tenements across Algeria and South Australia.
Contact details:
COMPANY
Martin Janes | Executive Director
Terramin Australia Limited
+61 8 8536 5950
INVESTOR RELATIONS
Mark Flynn | Investor Relations
Terramin Australia Limited
+61 416 068 733
