Herald expects to close Dairi zinc-lead project financing this year

Australian mining firm Herald Resources Limited said it was hoping to finalize project financing or trade sale/farm out for its Dairi zinc-lead project in North Sumatra by the end of this year.

The company said it was holding discussion with financiers and potential offtakers while waiting for the completion of the ongoing Bankable Feasibility Study (BFS), which is slated to be completed mid-year. It did not give specific details about the identities of the financiers, but Australia?s Macqarie Bank is financier for the project?s A$ 3 million BFS.

The Pre-Feasibility Study showed that over the life of the mine, the project would generate US$1 billion in gross revenue from production of 745,000 tons zinc and 471,000 tons lead.

Capital cost needed to develop the project was $83 million.

The estimate was based on the mining of the Anjing Hitam ore reserves, presently 6.324 million tons at 16% Zn and 10% Pb, or 22% Zinc equivalent to be processed in a 1 million tons per annum flotation concentrator and to produce separate zinc and lead concentrates for shipment to overseas smelters.

Beside Anjing Hitam deposit, the company also reported inferred resources at Lae Jehe (8.2 million tons at 7.7 % Zn, 4.1% Pb) and Base Camp (0.8 million tons at 7.2% Zn, 4.3% Pb).

Herald has 80 percent stake in PT Dairi Prima Mineral, which runs the project, while state miner PT Aneka Tambang Tbk holds the remaining 20 percent. (Alex)