12th May 2020 11:32
(Alliance News) - South32 Ltd said Tuesday its Clark deposit at its 100%-owned Hermosa project in the US state of Arizona has a 55 million tonne mineral resource estimate.
South32 said the estimate averaged 2.31% zinc, 9.08% manganese and 78 grammes per tonne silver.
Chief Executive Graham Kerr said: "The declaration of a mineral resource estimate for the Clark deposit marks another important milestone for the Hermosa project, following our initial mineral resource estimate for the Taylor deposit in June 2019."
The Clark deposit is interpreted as the upper oxidised, manganese-rich portion of the mineralised system that contains the previously reported Taylor mineral resource estimate.
Kerr continued: "When completed, the Taylor deposit pre feasibility study is expected to further de-risk our investment by demonstrating its ability to deliver strong shareholder returns over many decades. The Clark deposit provides an additional option to realise longer term value from within the broader land package.
"With ongoing exploration programs testing possible extensions to the Taylor deposit and newly identified prospects in the regional land package, we expect this work to reaffirm our view that Hermosa is one of the most exciting base metals projects in the industry."
Shares in South32 were down 2.2% in Johannesburg on Tuesday at ZAR21.87 each. There also were down 2.2% in London, at 97.64 pence.
By Paul McGowan; [email protected]
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