17th Jan 2022 07:54
(Alliance News) - Perth-based diversified miner South32 Ltd announced on Monday it had completed a pre-feasibility study for the Taylor deposit, marking an "important milestone" that may establish its US-based Hermosa as significant producer of zinc, lead and silver.
The Taylor deposit is South32's first development option at its wholly owned Hermosa project located in Arizona, US.
The results of the pre-feasibility study support Taylor's potential to be the first development of a multi-decade operation, establishing Hermosa as a globally significant producer of metals critical to a low carbon future.
"We are designing the Taylor Deposit to be our first 'next generation mine', using automation and technology to minimise our impact on the environment and to target a carbon neutral operation in line with our goal of achieving net zero operational carbon emissions by 2050," said South32 Chief Executive Graham Kerr.
The Taylor deposit will progress to a feasibility study, including work streams designed to unlock additional value by optimising operating and capital costs, extending the life of the resource and further assessing options identified to target a carbon neutral operation.
Completion of the feasibility study and a final investment decision to construct Taylor are expected in mid-2023.
South32 also said a scoping study for the spatially linked Clark deposit has confirmed the potential for a separate, integrated underground mining operation producing battery-grade manganese, as well as zinc and silver.
Clark has the potential to underpin a second development stage at Hermosa, with future studies to consider the opportunity to integrate its development with Taylor, potentially unlocking further operating and capital efficiencies.
While exploration drilling to date has been focused on the Taylor and Clark deposits, South32 said it had continued to complete surface geophysics, soil sampling and other exploration programs across its land package.
Shares in South32 fell 0.9% to ZAR46.80 on Monday morning in Johannesburg.
By Artwell Dlamini; [email protected]
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