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Metminco confident over Mollacas mining rights

Published: 19:44 08 Sep 2014 AEST

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Copper explorer Metminco (LON:MNC) is confident it will get a decision in its favour in its mining rights dispute at its Mollacas project in Chile.

In March, the Chilean Court of Appeal ruled that the company’s permit to start mining at the Mollacas project was invalid, but Metminco subsequently appealed to the Chilean Constitutional Tribunal.

“The decision by the Constitutional Tribunal to declare that the company's appeal is admissible is good news," said William Howe, managing director.

“We remain confident of a successful outcome of the legal proceedings at which time we will continue with the planned development of the Mollacas Project,” Howe said.

Work on feasibility and environmental studies at Mollacas has been halted pending outcome of the case.

At the Los Calatos project, Metminco added that evaluation work on the prospectivity of the broader project area has been completed with four drill ready targets identified within two kilometres of the project.

Los Calatos currently has an estimated mineral resource of 1.4bn tonnes at 0.47% Cu and 0.022% Molybdenum.

Metminco added it is close to finalising the location of the access corridor for a pipeline to the coast for transportation of concentrate and for seawater to the processing plant. A right of access application for the pipeline is expected to be submitted by the end of this year.

Discussions are continuing to find a strategic partner for the funding and development of Los Calatos, Metminco added.

There was net loss of US$3.3mln (2013 loss $33.7mln) in the half year to June. Cash holdings at the half year were about US$3.2mln.

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