Terramin Australia Ltd (ASX:TZN) has reached an important milestone at the Tala Hamza zinc project in Algeria – believed to be one of the largest undeveloped deposits for this metal and for lead – with drilling work to commence there.

Tala Hamza is being progressed through a joint venture in which Terramin has a 49% investment, alongside two Algerian government-owned companies – Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) and Office National de Recherche Géologique et Minière (ORGM) – which have a combined 51% stake.

Located close to the city of Béjaia, which has extensive infrastructure, including an airport and deep-water port, it’s expected to have a mine life of 20 years.

On top of that, the mine is being tipped to make significant contributions to the global zinc market, from a resource of 53 million tonnes (Mt) at 5.3% zinc and 1.3% lead at a cutoff grade of 2.5% zinc equivalent.

Early drilling work at Tala Hamza will focus on geotechnical considerations. Drill equipment will be delivered to the site in November, and administration facilities will be constructed the following month.

Also in November, Terramin announced the awarding of a US$336 million EPC (engineering, procurement and construction) contract to Sinosteel Equipment & Engineering Co Ltd, for the development of a 2mtpa process plant, underground mine, and associated infrastructure at the project.

The next stages of work at the project will include expansion of drilling operations and more intensive resource evaluation, completion of infrastructure enhancements, and continued liaison with Algerian partners – including within the local community – to help advance the project.

Terramin has been trading at 8 cents.

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