Terramin to Commence Construction on Zinc Project

Terramin Australia (ASX) is preparing to commence construction on its Tala Hamza Zinc Project in Algeria, following the successful acquisition of land that encompasses the full area of the mining permit. This significant development represents a major milestone for the project, particularly after receiving an Executive Decree of Public Utility.

This decree plays a vital role in facilitating the land acquisition process through government channels, allowing Terramin to move forward with its plans.

The completion of this land acquisition enables the company to fully access the mining permit area, which is essential for the upcoming construction activities. The Tala Hamza Zinc Project has the potential to become a key player in the zinc market, and the approval from the Algerian government underscores the project's importance within the region. As Terramin prepares to transition into the construction phase, it is optimistic about the opportunities that lie ahead for both the company and the local economy.

The mining permit for Tala Hamza was granted to Terramin by the Algerian mining regulator on May 18, 2023. This approval confirms that the company has met all necessary regulatory, financial, and environmental obligations outlined by Algerian authorities, paving the way for the project's development.

The mining permit for the Tala Hamza Zinc Project allows for the extraction and processing of up to 2 million tonnes of ore per year, a significant increase from the previously projected capacity of 1.3 million tonnes annually as detailed in the Definitive Feasibility Study completed in 2018. This enhancement in production capacity is expected to substantially improve the project's economic viability and returns over its planned operational lifespan, which exceeds 20 years.

With a market capitalization estimated at around $88.89 million, Terramin has successfully completed the land acquisition necessary for the project. This achievement provides Western Mediterranean Zinc Spa, the operator of Tala Hamza, with unrestricted access to the entire mining permit area. Such access is critical as it paves the way for the initiation of construction activities, marking an essential progression in Terramin's operations within Algeria.

The company is enthusiastic about the potential of the Tala Hamza Zinc Project to establish itself as a prominent player in the global zinc market.

With favourable geological conditions and a robust mining plan, Terramin is well-positioned to capitalize on the increasing demand for zinc, driven by its applications in various industries including construction, automotive, and renewable energy. As construction begins, the company is focused on ensuring that all regulatory and environmental standards are met, further solidifying its commitment to sustainable mining practices.

Terramin anticipates that the development of this project will not only enhance its production capabilities but also contribute positively to the local economy by creating jobs and fostering economic growth in the surrounding communities. As it moves forward, the company aims to engage with local stakeholders to ensure that the benefits of the project are shared widely, reinforcing its role as a responsible and community-oriented mining entity.

Terramin Australia has successfully secured a 234-hectare tract of land that will form the basis for all mining and processing activities at its Tala Hamza Zinc Project. This advantageous location offers direct access to a highway that connects to the Port of Bejaia, enhancing the efficiency of material transportation.

Executive Chairman Bruce Sheng characterized the acquisition as a “significant milestone,” highlighting the crucial role of obtaining access to the land specified in the Tala Hamza mining permit. He expressed appreciation for the commitment and support from their Algerian partners and the Algerian government, stating, “We are enthusiastic about the future of this world-class project.”

After the announcement on October 14, Terramin's share price increased by 16.67%, closing at $0.049 on the ASX, signalling strong investor confidence in the Tala Hamza Zinc Project.

Terramin has noted significant exploration potential within the Tala Hamza deposit, particularly to the east and southeast, indicating opportunities for expanded production capacity. The region is well-known for its rich mineralization, and several nearby under-explored zinc targets could further enhance resource expansion.

Located along the Mediterranean coast of Algeria, just 15 kilometres from Bejaia, the Tala Hamza Project is positioned to potentially become one of the largest developing zinc and lead deposits in the world. Terramin is dedicated to exploring base and precious metals, managing a diverse portfolio of projects in both Australia and Algeria, and is committed to maximizing its opportunities in these regions as it advances its mining efforts.