Symbol Mining Ltd (ASX:SL1) is up almost 45% after gaining final approvals for mining of the Macy Zinc Project in Nigeria.
After being notified of the Mining Lease and Environmental Protection and Rehabilitation Plan approvals, Symbol has started full-scale mining operations.
Shares up to 4.2 cents on strong volume
News of the green light being given as well as the start of mining of zinc and lead, saw the company’s shares rise to 4.2 cents intra-day on volume of more than 40 million.
Symbol Mining CEO Tim Wither said receiving approval for the Mining Lease and commencing full-scale mining was a great accomplishment for all parties involved.
“Approval of the Mining Lease at Macy shows the ongoing support from the Nigerian Mining Cadastral Office in advancing the first industrial-scale mining operation in Nigeria for several years and we appreciate the effort from everyone involved,” he said.
Strong cashflow expected
“Mining has commenced, and after a relatively short development period of two months, Macy is expected to generate strong cashflow.
“This will fund the company’s exploration activities at both its Imperial and Tawny projects,” Wither said.
READ: Symbol Mining looks to prove up economic viability of Macy project after upgrading JORC resource
Macy forms part of the 510 square kilometre Imperial Joint Venture in which Symbol holds 60% with Nigerian-based Goidel Resources Limited holding the remainder.
Granting of the final two approvals follow several months of dedicated work by the JV team in partnership with an independent environmental group, local communities and wider stakeholder groups.
Other approvals granted for Macy are the Environmental Impact Assessment, the Community Development Agreement and the Land Use Agreement.
On track for first shipment
Wither said: “The Imperial Joint Venture remains on track for its first shipment of high-grade zinc and lead product from the Macy project by the end of the third quarter of 2018.
“The Board looks forward to reporting further progress on this low-cost, low capex, high cashflow project.”
Symbol Mining also holds the Tawny exploration lease covering 7 square kilometres and which is highly prospective for lead and zinc.
This project is a joint venture with Adudu Farms Nigeria Limited, which holds 40%.